Revealing the promise of microfoundations for international business research: A modular approach

Abstract

The microfoundations perspective offers promising avenues for advancing theoretical and empirical research in international business (IB). However, two key challenges have limited progress so far: first, uncovering micro-macro relationships in complex, often nested, IB phenomena; second, applying the multiple theoretical lenses offered by IB to coherently explain relationships. This paper addresses these challenges of applying microfoundations in IB by proposing a modular approach to its foundational framework, Coleman's (1990) bathtub. By breaking down the bathtub into its component parts or modules, each module relates to a specific, independent relationship between two constructs, that can be theorized and tested. We provide clear definitions of how modular (mono, abridged, partial, or full) explanations can be used as a tool for conceptualization and research design. In addition to enhancing our theoretical precision, a modular microfoundations approach also provides the architecture for existing studies to be connectable to new work focusing on other modules. This holds the potential of creating a full microfoundations explanation and thereby a rigorous and cumulative means for theory building in IB. We call for scholars to adopt this modular microfoundations perspective to better tackle the important questions of our time for global business and society.