International business research: The real challenges are data and theory

Abstract We agree with Aguinis and Gabriel that, contrary to Eden Nielsen, international business (IB) is not uniquely complex, but argue that it faces two unique challenges. First, because deals cross-country phenomena, IB data are less plentiful reliable. Second, uses many imported theories, they tend be influenced by the national environment of their authors, often have, taken as is, limited applicability in contexts studies. illustrate our twin points examining secondary used measure economic activities multinational enterprises outside home country, both at country level, using foreign direct investment (FDI) from balance payments statistics, firm firm-level databases such Orbis. document serious shortcomings FDI problems encountered data. then highlight some cultural biases inherent Williamson’s version transaction cost theory (TCT) show how can overcome arrive a richer more general applicable wider variety contexts.