Another Waltz? Methodological rhetoric and practice in theory of international politics

Although Theory of International Politics is a standard-bearer for explanatory theory in international relations (IR), Waltz’s methodology has been subject to numerous quite disparate analyses. One reason why it has proved hard to pin down is that too little attention has been paid to how, in practice, Waltz approaches real-world problems. Despite his neopositivist rhetoric, Waltz applies neorealism in a notably loose, even indeterminate, fashion. There is therefore a disjunction between what he says and what he does. This is partly explained by his unsatisfactory attempt to reconcile his avowed neopositivism with his belief that international politics is characterized by organized complexity. The inconsistencies thus created also help to make sense of why competing interpretations of his methodology have emerged. Some aspects of his work do point beyond these particular methodological travails in ways that will continue to be of interest to IR theorists, but its most enduring methodological lesson may be that rhetoric and practice do not necessarily fit harmoniously together.

The economic theory of international business: a supply chain perspective

This paper proposes a way of addressing unresolved issues in international business theory by modelling the multinational enterprise as a coordinator of supply chains. It identifies a new market seeking strategy that is an alternative to conventional strategies such as exporting, licensing and FDI, and analyses the conditions under which it will be adopted by firms. The new strategy involves the off-shoring of production and the out-sourcing of R&D, and is implemented through co-operation between a source country firm and a host country firm.

The economic theory of international supply chains: a systems view

This paper offers an integrated analysis of out-sourcing, off-shoring and foreign direct investment within a systems view of international business. This view takes the supply chain rather than the firm as the basic unit of analysis. It argues that competition in the global economy selects supply chains that maximise the joint profit of all the firms in the chain. The systems view is compared with the firm-centred view commonly used in strategy literature. The paper shows that a firm’s strategy must be embedded within an efficient supply chain strategy, and that this strategy must be negotiated with, rather than imposed upon, other firms. The paper analyses the conditions under which various supply chain strategies - and by implication various firm-level strategies - are efficient. Only by adopting a systems view of supply chains is it possible to determine which firm-level strategies will succeed in a volatile global economy.

The heuristic application of explanatory theories in international relations

Explanatory theorists increasingly insist that their theories are useful even though they cannot be deductively applied. But if so, then how do such theories contribute to our understanding of international relations? I argue that explanatory theories are typically heuristically applied: theorists’ accounts of specific empirical episodes are shaped by their theories’ thematic content, but are not inferred from putative causal generalizations or covering laws. These accounts therefore gain no weight from their purely rhetorical association with theories’ quasi-deductive arguments: they must be judged on the plausibility of their empirical claims. Moreover, the quasi-deductive form in which explanatory theories are typically presented obscures their actual explanatory role, which is to indicate what sort of explanation may be required, to provide conceptual categories, and to suggest an empirical focus. This account of how theoretical explanations are constructed subverts the nomothetic–idiographic distinction that is often used to distinguish International Relations from History.

Causation, complexity, and the concert: the pragmatics of causal explanation in international relations

A causal explanation provides information about the causal history of whatever is being explained. However, most causal histories extend back almost infinitely and can be described in almost infinite detail. Causal explanations therefore involve choices about which elements of causal histories to pick out. These choices are pragmatic: they reflect our explanatory interests. When adjudicating between competing causal explanations, we must therefore consider not only questions of epistemic adequacy (whether we have good grounds for identifying certain factors as causes) but also questions of pragmatic adequacy (whether the aspects of the causal history picked out are salient to our explanatory interests). Recognizing that causal explanations differ pragmatically as well as epistemically is crucial for identifying what is at stake in competing explanations of the relative peacefulness of the nineteenth-century Concert system. It is also crucial for understanding how explanations of past events can inform policy prescription.

International relations theory and peacebuilding

The chapter examines the contribution that International Relations theory has made to the reading and practice of peacebuilding.

Fifty years of international business theory and beyond

As the field of international business has matured, there have been shifts in the core unit of analysis. First, there was analysis at country level, using national statistics on trade and foreign direct investment (FDI). Next, the focus shifted to the multinational enterprise (MNE) and the parent’s firm specific advantages (FSAs). Eventually the MNE was analysed as a network and the subsidiary became a unit of analysis. We untangle the last fifty years of international business theory using a classification by these three units of analysis. This is the country-specific advantage (CSA) and firm-specific advantage (FSA) matrix. Will this integrative framework continue to be useful in the future? We demonstrate that this is likely as the CSA/FSA matrix permits integration of potentially useful alternative units of analysis, including the broad region of the triad. Looking forward, we develop a new framework, visualized in two matrices, to show how distance really matters and how FSAs function in international business. Key to this are the concepts of compounded distance and resource recombination barriers facing MNEs when operating across national borders.

Game-theoretic aspects of international mergers: Theory and case studies

This paper studies the exclusion of potential competition as a motivating factor for international mergers. We propose a simple game-theoretic framework in order to discuss the conditions under which mergers that prevent reciprocal domestic competition will occur. Our analysis highlights the shortcomings of antitrust policies based on pre-merger/post-merger concentration comparisons. A review of several recent European cases suggests that actual merger policy often fails to consider potential competition.

The economic theory of the firm as a foundation for international business theory

The economic theory of the firm is central to the theory of the multinational enterprise. Recent literature on multinationals, however, makes only limited reference to the economic theory of the firm. Multinationals play an important role in coordinating the international division of labour through internal markets. The paper reviews the economic principles that underlie this view. Optimal internalisation equates marginal benefits and costs. The benefits of internalisation stem mainly from the difficulties of licensing proprietary knowledge, reflecting the view that MNEs possess an ‘ownership’ or ‘firm-specific’ advantage. The costs of internalisation, it is argued, reflect managerial capability, and in particular the capability to manage a large firm. The paper argues that management capability is a complement to ownership advantage. Ownership advantage determines the potential of the firm, and management capability governs the fulfilment of this potential through overcoming barriers to growth. The analysis is applied to a variety of issues, including out-sourcing, geographical dispersion of production, and regional specialisation in marketing.