Decoupling in International Business

Abstract

Following the academic discourses that the International Business (IB) has not yet seen the levels of academic intrusions on decoupling a thorny ethical dilemma evident in other fields that explains why organizations when strive for conformity, they may attempt to preclude the necessity of their formal structure with an intention to show obedience towards institutional settings while at the same time actually practicing business in ways that they believe are more efficient. This study attempts to bridge this important gap and understanding of decoupling in the burgeoning stream of IB where export organizations decouple from the actual substantive conformity to the Intellectual Property Rights and the Protected Designation of Origin certification requirements. This policy to practice decoupling in the form of avoidance from institutional pressures and concealment manifest itself in the organizations zeal to placate the pressures of resource criticalities brought about by this unique isomorphic setting of the home and host country institutional landscape(s). Thus theoretically, tight coupling between institutional rules (and pressures) and export organizations does not necessarily translate from form to function but rather ceremonial conformity, which may further be heightened by onward problems of enforcement of these rules in the same institutional settings therein.