Machine Learning Applications in International Business

This research article published in the Journal of International Business Studies discusses the role of machine learning (ML) in international business (IB). It outlines the current state of ML as an analytical tool within IB, noting that while ML is well established in various operational areas like finance and logistics, its application in IB as a scientific discipline remains limited. The authors argue for the integration of ML techniques into the standard analytical toolkit of IB research, emphasizing the potential for improved predictive accuracy and the ability to address complex issues inherent in international business. The article provides a practical tutorial on ML processes and methodologies, illustrating the concepts with both simulated and real data analyses. It also reflects on how ML can contribute to theory development in IB, advocating for a shift from traditional statistical methods to more algorithmic approaches. The authors conclude by encouraging further exploration and adoption of ML within the IB research community.