This article portrays the evolution of international business (IB) literature. We review the main issues and theoretical assumptions that have dominated research in the IB field during the last sixty years.Moreover, on the basis of the essential paradigms developed, we analyse what issues are of interest and may represent a potentially fruitful arena in which to develop future scholarly research.Creative Commons License 4.0
64The process of theory development is gradual and incremental, in parallel to business changes and environmental evolution. A lot of water has passed under the bridge since the 1960s when the first IB theories based on market imperfections were proposed. As a result, MNCs have been examined from different disciplines and points of view, yielding a great and diversified array of theoretical research. Many ways of understanding the MNC and its diverse patterns of behaviour have been hitherto developed; yet, focusing on only one stream of analysis can severely limit the power of explanation of the IB field. Therefore, to support and advance theorization in IB, the aim of this article is to review the main issues and theoretical assumptions that have dominated research in international business during the last sixty years in order to discover the basic paradigms on which the present literature is grounded.Therefore, the present article briefly explains the evolution of existing thought on which new and future theory and models can be built.In addition, although theoretical and empirical research has succeeded in answering many of the questions mentioned above, there are still many challenges to be confronted and new questions to be answered. Accordingly, we try to go further, analysing which issues are of interest today and may represent a potentially fruitful arena in which to develop future scholarly research. In short, we contribute to a better understanding of what we know about IB up until the present and also what we would like to know in the immediate future.In order to better understand this co-evolution of theoretical development and changes in the business environment, we dedicate the next section to explaining the birth of modern international business literature. Section three is dedicated to the development of IB theory with the arrival of the new century. After this overview of the field, the fourth section lays out several challenges and future lines of research and the final section presents the conclusions. Creative Commons License 4.0 77 theory, the network view assumes that MNCs are more affected by their business environment than by their institutional environment (Forsgren 2008). MNCs are considered to work more like complex global networks than hierarchies (Ghoshal and Bartlett 1990), since they count on internationally dispersed connected units, which in turn are each embedded in different host country networks (Andersson et al. 2002; Forsgren et al. 2005).The creation of international business networks is the result of a path-dependent process where past decisions conditio...