Decoupling in International Business: Evidence, Drivers, Impact and Implications for IB Research
Prof Peter Ping Li
Professor
Department of International Economics, Government and Business
Copenhagen Business School
We argue that decoupling, defined as the process of weakening interdependence between two nations, has been ongoing between China and the United States and is likely to accelerate, with major implications for IB and MNE strategies and management. We show how the world has both deglobalized and decoupled in recent years and discuss the underlying dynamics at the heart of decoupling and their implications for IB. We propose an initial framework of variations in decoupling by industry characteristics, and we outline novel and important questions for IB research growing out of our analysis. We conclude with a brief exposition of possible alternative scenarios.