War and International Business: Insights from Political Science

Abstract

How might businesses foster peace? We borrow insights from political science on the causes of war to guide IB scholarly research. We analyze war as a bargaining failure and present five causes of war (unchecked authority, intangible incentives, uncertainty, commitment problems, and misperceptions). We then identify business-for-peace initiatives (modifying incentives for war and peace, ex-combatant demobilization and reintegration, providing information, mediation and track-two diplomacy, peace guarantees, and community engagement) and propose research questions for each. Our work has important implications for IB scholars conducting research on firms operating in conflict-prone environments.