Complexity in international business: The implications for theory

International business is inherently complex for four main reasons: the large number of countries, products, technologies and firms involved, the intricate connectivity of international transport and communications networks, the diversity of the political, cultural and regulatory environment, and the speed and unpredictability of change. The complexity created by these features can be measured using the techniques presented in this paper. IB has developed simple and powerful theories which abstract from inessential details and thereby reduce the complexity of theory to a minimum. The assumptions underlying this theory are common to other disciplines, and provide a basis for future inter-disciplinary research.