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INTERNATIONAL
NEUROMANAGEMENT

Deconstructing international management
education with neuroscience

Magdalena Bielenia-Grajewska

Introduction

The aim of this chapter is to present the application of neuroscientific studies in international management (IM) by discussing how both the methods and the findings characteristic of neuroscience can be useful for researchers and practitioners in IM. The theoretical and practical ways of applying neuroscience to the study on international management are becoming more and more visible in the scientific discourse of the twenty-first century. Not only researchers rely on neuroscientific methodology in their investigations on managerial issues but also companies opt for neuroscientific tools to shape or strengthen their organizational identity. Thus, the chapter seeks to explore how neuroscience enhances the creation and expansion of disciplines belonging to international management. The first part of the contribution is devoted to the presentation of selected links between neuroscience and international management as well as to the description of various neuroscientific tools. The next section of the research focuses on studying the domains related to international management through the prism of neuroscience. Thus, international business, international strategy, international marketing, international entrepreneurship, and business ethics are explained, together with the ways in which neuroscientific knowledge and apparatus facilitate the performance of the discussed IM domains. Moreover, a selected example is presented to show that the mentioned relation between the neuroscientific and the business worlds is mutually beneficial since also the domain of neuroscience as such can be enriched by the scientific achievements of international management.

The relation between neuroscience and international management

Taking into account the indispensability of the brain in performing all types of human activities, it can be stated that neuroscience determines every sphere of one's life. For example, the choices people make are strongly ruled by neuroscience since the decision-making process is influenced by three factors. The first notion is the internal order of the mind, the second one constitutes the norms and issues that determine human sociality, and the third domain comprises the cooperation with market institutions and technology (Smith, 2009). Thus, the selection of options individuals make is governed by the biological and cognitive spheres of the brain and its performance. However, it is not only the individual but also the organization as such that can be studied through emotions or memory (Branche, 2008). Narrowing the current discussion to the field of international management, the link between IM and neuroscience can be observed, together with the ways international management can benefit from various neuroscientific domains. Owing to the limitations of this chapter and the diversity of neuroscientific studies, only two fields of knowledge are discussed in a more detailed way. One of them is social neuroscience (SN), being an interdisciplinary domain that focuses on studying the neural, hormonal, cellular, and genetic mechanisms underlying human activities as well as the relations between the social and biological levels of organizations (Cacioppo and Decety, 2011). The development of social neuroscience has been enhanced by such innovations as the possibility of studying higher cognitive functions, owing to the rapid development of imagining technologies and the opportunity to use various tools of cognitive neuroscience and neuroendocrinology, together with the methods of behavioral research in animals, social psychology, behavioral economics, and the research in mirror neurons on macaque monkeys (Matusall, Kaufmann and Christen, 2011). Social neuroscience covers such subareas as computational social neuroscience, social cognitive neuroscience, social affective neuroscience, neuroeconomics, social developmental neuroscience, and comparative social neuroscience (Cacioppo and Decety, 2011). Although the topics of interest are widespread among scholars regardless of their country of origin, the popularity of some issues depends on the geographical location of researchers. For example, social cognition and theories of mind and actions have been more favored in Europe, whereas the social neuroscientists in the USA have been for years more interested in the issues concerning the self, stereotypes, and emotions (Singer, 2012). Taking into account different applications of social neuroscience in the field of international management, it can be used to study stigma and intergroup relations (Kang, Inzlicht and Derks, 2010), intercultural differences (Mason and Morris, 2010), and leadership (Waldman, Balthazard and Peterson, 201 1b). The next important domain that facilitates the neuroscientific perspective in management studies is organizational cognitive neuroscience. Organizational cognitive neuroscience is the study of the processes within the brain that underlie or influence human decisions, behaviors, and interactions either (a) within organizations or (b) in response to organizational manifestations or institutions (Lee and Chamberlain, 2007: 22). Organizational cognitive neuroscience is understood as the approach that relies on neuroscientific methods to analyze and perceive human behavior in organizational settings. This type of research can take place at individual, group, organizational, and interorganizational levels, and it offers various perspectives of understanding human behavior in organizations (Butler and Senior, 2007). Due to the multiplicity of research approaches, organizational cognitive neuroscience can be used not only in the research on leadership (Lee, Senior and Butler, 2012) but also in other fields of IM since they all involve social interactions on the internal and external level of organizations. Another reason for the popularity of neuroscience in international management is related to the limitations of the standard research options. Although huge sums of money are spent by organizations on market research before the product is launched, thousands of articles have to be recalled from the market, and 80 percent of the introduced products are in danger of being unsuccessful (Held and Schreier, 2006). Since it turns out that not all choices and feelings of clientele can be studied by the application of standard methodology, it is neuroscience that offers an insight into the feelings, emotions, and perceptions that determine customers' preferences.

Neurophysiological methods and their usage in research in international management

The interest in using neuroscience in management studies can be found in the scientific literature from the second half of the twentieth century. For example, Hess and Polt (1960) showed in their research how the increase in the size of the pupil accompanies the emotional state after exposure to some interesting visual stimuli. A similar work was published by King (1972), who researched how pupil size facilitates customer preferences. In the discussed experiment, subjects selected the picture with enlarged pupils and viewed them as more appealing. Other research works concentrated on the role of neuroscientific tools, such as the electroencephalography (EEG) or galvanic skin response (GSR), to study activation and consumer performance (Kroeber-Riel, 1978). Owing to the rapid development of the mentioned techniques, these modalities started to be more and more popular in various domains in science, including management. Thus, eye-tracking analysis, functional magnetic resonance imagining (fMRI), positron emission tomography (PET), facial electromyography, EEG, and magnetoencephalography (MEG) as well as galvanic skin response are presented in the coming sections and their role in international management is stressed. The application of the presented techniques in the domain of international management is discussed in the section devoted to the description of neuromanagement subdomains and their neuroscientific tools.

Functional magnetic resonance imaging

fMRI is a neuroimaging technique relying on magnetic resonance to observe brain activity. The typical fMRI experiment consists of various stages during which the subject is asked to lie still in an MRI scanner for about 60–90 minutes. The first 6–15 minutes are devoted to anatomical/ structural scans of the brain. During the next parts of the observation (several series, 3–10 minutes each), the subject is asked to perform some tasks. One of the methods is to display some visual stimuli on a screen and ask the subject to respond to the question by pressing the selected button. During the performance of tasks, the MRI scanner records the BOLD signal (blood oxygen level depending) every few seconds. This technique allows researchers to observe which brain areas are active and which are less active during the performed tasks compared with the control scans (Kenning, Plassmann and Ahlert, 2007), since fMRI is used to track the increase in blood oxygen concentration that takes place in the area of heightened neuronal activity (Laureys, Boly and Tononi, 2009).

Positron emission tomography

In this technique, the subject is given a weak radioactive contrast agent that travels in the blood to the brain and concentrates in the regions characteristic of high metabolic activity. These areas are presented on a computer screen (Raab et al., 2010). This method has some disadvantages. One of them is the problem with identifying the location of the signal and the second one is the low spatial resolution (Zurawicki, 2010). Additionally, since this method is invasive (the subject has to be injected with a radioactive tracer), it is not used very often when a non-invasive technology can be applied. Consequently, PET is not popular in organization studies (Du Plessis, 2011), although it can be employed, for example, in the research on social decision-making by observing the changes in the blood flows of subjects taking part in interactive games (Sanfey and Dorris,2009).

Facial electromyography

It is important to study facial expressions, since they provide information about affective states (e.g., fear, anger, surprise, sadness, and euphoria), cognitive states (e.g., concentration and boredom), and temperament and personality (e.g., hostility, sociability, and shyness). One method of observing and estimating facial expressions is electromyography (EMG), which measures nerve impulses to muscles responsible for facial changes and expressions (Helander and Khalid, 2012). Thus, this technique can be used to study emotional responses (Phelps, 2009) as reactions to the presented products and services. Although EMG offers high temporal and spatial resolutions, in most cases the researcher has to specify and select carefully the muscles for the given study (Hess, 2009). Consequently, EMG needs background knowledge on facial muscles if the experiment is to be conducted in the right way.

Electroencephalography

In this technique, some electrodes are attached to the subject's head to detect differences in neural activities. This method is non-invasive; however, since the signal is not measured directly but on the scalp surface after the signal travels through the tissue and skull (tissues have different conductivities), the precise place of brain activation may be difficult to estimate (Lee and Chamberlain, 2007; Zurawicki, 2010).

Transcranial magnetic stimulation

TMS relies on using a magnetic field to stimulate the brain. A large-capacity current is discharged through a coil that is placed on the surface of the skull (Cheney, 2002). TMS temporarily disrupts the neural activity in a given part of the brain to see whether this part is indispensable in conducting the task (Powell, 2011). The disadvantage concerning this technique is that TMS does not go deeper into the brain and only the neocortex can be observed (Zurawicki, 2010).

Magnetoencephalography

In this technique, the subject sits in a large scanner and the magnetic signals connected with the electrical activity in the brain are measured. The technique is similar to EEG but, since it is not influenced by the type of tissue and the strength of magnetic field, it can provide a reliable indication of the source in the brain and, consequently, it is a very promising technique in studying cognitive processes (Zurawicki, 2010). The method is characterized by high spatial accuracy and high temporal resolution (Zurawicki, 2010) as well as non-invasiveness, but the costs of purchasing the machine and its maintenance are relatively high (Lee and Chamberlain, 2007).

Galvanic skin response

Galvanic skin response (also called electrodermal response) traces changes in the electrical resistance of the skin. A small electric current of constant intensity is sent through the electrodes to the fingertips. The level of stimulation is visible in the differences in voltage between the electrodes (McDaniel and Gates, 1998).

International neuromanagement and its domains

The definition of international management provided earlier in the book is taken into account during the discussion on the field of international neuromanagement that is presented by Eden et al. in Chapter 4 of this book: international management (IM) as a field of inquiry is the study of the process of planning, organizing, directing and controlling the organization, which individuals (managers) use to achieve an organization's goals when the organization is involved in cross-border activities or functions outside its nation-state. Consequently, international neuromanagement can be defined as the use of neuroscience in planning, organizing, directing, and controlling organizations. Thus, the researchers are interested in international management from the cognitive and neuroscientific perspectives, examining the role of the brain and its functions in conducting all the activities indispensable in international management. The details concerning the role of neuroscience in international management are discussed in the coming sections.

International neurobusiness

International business is described in some recent contributions on management as all business activities, including the creation and transfer of resources, goods, services, know-how, skills and information, which transcend national boundaries (Menipaz and Menipaz, 2001:22). A similar definition is offered by Eden et al. in Chapter 4 of this book: international business as a field of inquiry is the study of enterprises crossing national borders, which includes cross-border activities of businesses, interactions of business with the international environment, and comparative studies of business as an organizational form in different countries. The mentioned definition also highlights the subdomains of international business. Such subfields can be enumerated: (1) the multinational enterprise (MNE) (its activities, strategies, structures, and decision-making processes); (2) interactions between MNEs and other actors, organizations, institutions and markets; (3) cross-border activities of firms; (4) impact of the international environment on business; (5) international dimensions of organizational forms (e.g., strategic alliances) and activities (e.g., entrepreneurship and corporate governance); and (6) cross-country comparative studies of businesses, business processes and organizational behavior in different countries and environments (Eden et al., Chapter 4, this volume). Thus, international neurobusiness can be understood as the neuroscientific level of activities, structures, and decisions in MNEs, their interactions with other entities as well as their organizational surroundings. Moreover, cross-country comparative studies of businesses can be done by paying attention to individual and group cognition in the studied companies. Since international business is characterized by integration and interdependence (Gentile-Lüdecke and Lundan, Chapter 7, this volume), the same can be observed with international neuromanagement. Thus, both interdisciplinary and mutual relations with the external environment determine the study on the neuroscientific nature of IB. Additionally, since qualitative studies offer a multifactoral insight in international business (Gentile-Lüdecke and Lundan, Chapter 7, this volume), neuroscience can also facilitate novel exploratory research perspectives and its comparative methods can enhance the understanding of modern IB.

International neurostrategy

International strategy is not only limited to international firms since its influence also covers their local market and their possibilities of meeting the demands of customers (Segal-Horn and Faulkner, 2007). Moreover, international strategic management (or international strategy) as a field of inquiry is the study of the comprehensive set of commitments, decisions and actions undertaken by firms to gain competitiveness in the international environment (Eden et al., Chapter 4, this volume). It encompasses the major initiatives taken by managers on behalf of owners and it involves the usage of internal and external resources with the aim of stimulating the performance of companies operating in the international environment (Eden et al., Chapter 4, this volume). Thus, international neurostrategy can be defined by the present author as the neuroscientific dimension of all activities that aim at gaining and maintaining competitive advantage on the international market. Consequently, neuroscientific research can facilitate the understanding of how people make their decisions and what can be done to make them opt for the offered services or products. Since one of the important issues in strategic management is the consumer's willingness to pay, neuroscience can provide the answer as to which parts of the brain are decisive in shaping customers' decisions and product selection (Powell, 2011).

Neuromarketing

International marketing is also strongly influenced by neuroscience. The popularity of neuro-scientific approaches in the field of marketing has given rise to the creation and development of neuromarketing, which can generally be understood as the neuroscientific side of marketing studies. As Peters and Ghadiri (2011) state, neuromarketing deals with the analysis of the neuronal effects of market-related strategies, with the aim of comprehending the processes taking place in the brain and, consequently, understanding the wishes and needs of customers. Although neuromarketing has much in common with consumer neuroscience, there are certain issues that make these fields separate. Consumer neuroscience refers to the academic research benefiting from neuroscience and psychology, whereas neuromarketing deals with the practical and commercial interest in using various neurophysiological tools, such as eye tracking, skin conductance, EEG, and fMRI to run market-oriented research (Plassmann, Ramsøy and Milosavljevic, 2012). Neuromarketing benefits from the methods and results achieved by other disciplines, such as psychophysics, brain research, artificial intelligence, marketing, market research, culture studies, developmental psychology (Raab, Gernsheimer and Schindler, 2009), or, according to a different classification, economics (political economics, management, specialized management with such components as marketing, sales, logistics, and production), cognitive studies (psychology, computer studies, philosophy, linguistics, and cultural studies), and neuroscience (neurobiology, neuropsychology, and neurology) (Raab, Gernsheimer and Schindler, 2009). Among various perspectives governing neuromarketing, one of the most popular approaches is to concentrate on consumers, their intentions, emotions, and choices. Starting from the purely biological approach, neuromarketing focuses on reward-related brain regions (e.g., nucleus accumbens and orbitofrontal cortex) since they are believed to be determinant in consumer choices. For example, if the product causes a higher response in nucleus accumbens, it indicates the subject's interest in the product (Haynes, 2011). Consequently, lexical decision tasks and memory tasks, for example, are used to study, among other things, the reactions to brands and brand associations (Gontijo and Zhang, 2007). The next neuroscientific approach is related to customers' cognition and there are different layers of meaning that determine one's perception. The first one is called direct sensory or iconic impressions and it includes such items as color, shape, texture, size, weight, and taste. The second one, idiosyncratic meanings, covers the associations related to individual experience. The third notion includes subcultural associations and encompasses the images and thoughts of objects characteristic of some communities. The last group, cultural associations, consists of the thoughts and images associated with a given object by most representatives of the given culture (Hirschman, 1998). In summary, the aim of neuromarketing is to make organizational communication quicker and more efficient (Labude, 2008). Since customers create a community of relationships, the clientele can be discussed through the prism of social networks since they exert some influence on potential buyers owing to the strong or weak ties (Pinheiro Reis and Helfert, 2010). The role of social networks is very important in modern business since some companies define high-value customers not as the ones who are wealthy but as the ones who have some influence, being central or strong nodes within their social networks (Pinheiro Reis and Helfert, 2010). Additionally, people opt for networks that consist of members similar or different as far as their gender, language, professions, etc. are concerned, and consequently, online social networks can be homophilous or heterophyllous (Bielenia-Grajewska, 2012). Thus, neuroscience can be used to observe the reasons determining the choice of heterophily or homophily in online and offline business contacts.

One of the most important marketing techniques is branding, which aims at making the customer aware that a brand exists and strengthening the brand position on the market. Branding is crucial for companies since one brand may entail different products and categories (Schmitt, 2012). The issue of branding can be studied through the neuroscientific perspective, which deals with how people perceive brands, how they recognize them, and how they store brand-related knowledge. The role of neuroscience in branding is very important owing to the fact that the brain plays a crucial role in brand recognition. For example, each individual stores about 10,000 brand names and different parts of the brain are involved in brand processing. Even a single element of branding, such as a logo, requires 75 separate modalities of both hemispheres (Gordon, 2006). Moreover, neuroscience is used to study the attitude to known and unknown brands since neuroscientific research has proved, for example, that in the case of novel brands the longer choice response latency can be observed. Additionally, a positive mood stimulates the response latency of choosing novel brands (Reimann et al., 2012a). Thus, marketing specialists who want to attract customers to new brands should pay attention to emotions. To digress, the notion of hemispheres is also used in modern advertising, showing how the human brain perceives different product features in both hemispheres (Reins, 2006).

Since consumption is determined by customers' needs and satisfaction, marketing specialists focus on how customers perceive and select products. Moreover, neurobranding studies can be employed for discussing why people select certain brands and what the role of various factors in their selection is. It allows researchers to study the influence of both visual and verbal elements in customer preferences and select the best branding strategy. Thus, the role of senses (e.g., visual, auditory, olfactory senses, tactile, and haptic ones) is important in studying consumer behavior (e.g., Achrol and Kotler, 2012; Held and Schreier, 2006). Starting with the visual sphere, color is a decisive factor. Chromotherapy, which relies on the healing or soothing qualities of colors, especially their frequency and vibrations, affects the user's mood (Tungate, 2011). As far as the verbal dimension is concerned, brand names are processed more quickly than non-words, but more slowly than common words (Gontijo et al., 2002). Another neuroscientific study has proved that it requires less effort from the cognitive perspective to establish a link between faces and occupations than between occupations and names. Thus, it is easier, for example, to remember that the face belongs to a baker than that it is the face of Mr. Baker (Hanley, 2011). Another study has shown that names of people are more difficult to recall than the names of objects. One of the reasons is the frequency of phonology related to people's names. Thus, common nouns may sound more familiar and, consequently, be more easily understood, stored, and later retrieved, since people's names may contain novel syllables (Brennen, 1993). All the mentioned aspects facilitate the creation of more efficient brand names.

To illustrate the discussed features of neuromarketing, some examples from different industries are presented. To start with alimentation: food producers are interested in how gender differences in brain structure determine food preference. The knowledge of emotions involved in food selection may help in creating or changing the package to meet customers' needs and enhance the purchase (Shaw, Dibeehi and Walden, 2010). Another area relying on neuroscience is neurocosmetics. This sphere of business concentrates on producing mood-enhancing cosmetics. This can be achieved by using a substance that stimulates some part of the brain. One example is producing perfumes that decrease the appetite, such as the perfume called Prends-moi created by Robertet using beta-endorphin, which enhances a good mood and positive feelings (NYDN,2012).

Neuroentrepreneurship

Entrepreneurship can be studied from different angles. One of them is the sociological perspective of entrepreneurship, which stresses the context in entrepreneurial performance and such issues as social tolerance of entrepreneurship, social immobility, life course stage and supporting networks that determine the emergence of new entrepreneurships (Tsang, 2006). The second popular approach is the behavioral aspect of entrepreneurship. When one looks at entrepreneur-ship from the cognitive perspective, several issues can be observed. First of all, the notions of creativity and perception are important as well as the observations about how individuals perceive reality by using different senses and how they interpret what they can observe. The second question concerns intentions, with such issues as perceived feasibility and perceived desirability being the antecedents of intentions. The third element constitutes key beliefs and attitudes that determine intentions. The fourth issue encompasses deeper beliefs and knowledge structures, with causal maps, schemas, and scripts used to study cognitive phenomena, whereas the fifth element deals with the broadly understood entrepreneurial learning (Kruger and Dey, 2010).

There are various reasons that make entrepreneurship prone to neuroscientific research, especially when discussed from the perspective of cognition. For example, entrepreneurs have to engage at the same time in different tasks that require different skills and create products or services that are unknown by others (Blair, 2010). The ways in which entrepreneurs deal with the mentioned complexities can be studied by various cognitive theories, with the schema approach being one of the most important methodologies in cognitive neuroscience. Schemas theory facilitates the effectiveness of modern managers at the individual and company level since cognitive knowledge enhances their performance and stimulates their understanding of organizational behaviors. By dividing information into meaningful parts, the entrepreneurs can understand, order, and manage their surrounding reality. Applying past experience can facilitate the understanding of novel situations, enhance organizational understanding, and reduce the amount of ambiguous situations (Bielenia-Grajewska, 2013). At the same time, cognitive and affective responses to brand communication can be studied by taking into account the issue of incongruity with one's brand schemata (Halkias and Kokkinaki, 2012). It should also be stressed that the role of emotions in shaping facts belongs to the seven rules of neuroleadership (Elger, 2008). Since neuroimaging allows researchers to study emotions, both positive and negative, and their implications for entrepreneurship, it stimulates the understanding about how people make evaluations and what determines their judgments. Thus, a part of the research conducted into the topic of entrepreneurship is devoted to its social sphere (e.g., Shapero and Sokol, 1982), to study the role of cultural and social factors in shaping values determining entrepreneurs and entrepreneurship. As far as neuroscience as such is concerned, the interest in the role of the brain and leadership is visible in scientific literature (e.g., Elger, 2008; Granchi and Gasparotto, 2010). One of the notions taken up in modern scientific writing on entrepreneurship is the role of brain hemispheres in creating and maintaining entrepreneurial activities. Since the right hemisphere is associated with artistic and emotional thinking and the left one is responsible for logical, mathematical, and technical skills, the manager's role is connected with the left part of the brain and the leader's role is reflected in the activity of the right hemisphere (Gill, 2006). Another area of interest is related to processing new information. The right hemisphere is responsible for perceiving and using novel and unfamiliar information, whereas the left hemisphere is in charge of processing routine and familiar data (Feinstein and Kiner, 201 1). Thus, neuroimaging can provide information on various types of entrepreneurs and diversified ways of creating and maintaining novel enterprises. The way in which people think and act is determined by the relation between their hemispheres, which is influenced by, for example, their gender and handedness, whereas the balance of their hemispheres is represented, among others, in the way they master certain skills, represent knowledge, and communicate. Furthermore, people who have the tendency to rely more on one hemisphere want to be addressed by using the same hemisphere (Tozer, 2012). For example, those who favor verbal information use the left half of the brain more, whereas the ones who prefer visual images are more right-brained (Daft, 2008). Thus, if the entrepreneurs want to be successful, they should be aware of these differences and apply the best methods of communication since, whereas some people think primarily in words, others think primarily in visual and/or auditory images (Hirschman, 1998: 386). Another important issue is related to memorizing. The working memory has a limited capacity, thus only a definite number of items can be stored and the perceived information overload may take place during high information inflows. Looking at this issue from the perspective of neuroleadership, the brain's prefrontal cortex has a limited information capacity (Sousa, 2012) and, consequently, leaders should be selective as far as information flows are concerned. The next important neuroscientific domain that can enhance the understanding of leadership is neurobiology. One way of applying neurobiological findings is to explain the reasons for the attachment to familiar people. The brain needs glucose to have speed and efficiency; since the level of glucose is not high enough throughout the day, people prefer to stay in familiar environments since they can expend less energy and thus less glucose to understand others' intentions (Meshanko, 2012). There are several cognitive factors that make people become entrepreneurs, enhance their understanding of opportunities and become more successful than other entrepreneurs (Baron, 2004), with trust being one of them. From a biological perspective, the way in which one trusts others is determined by the hormone oxytocin since oxytocin reduces anxiety and stimulates engagement and bonding in social situations. Additionally, oxytocin makes people more patient (Chatzky, 2011). Thus, a high-trust and high-oxytocin environment stimulates effective organizations (Zak and Nadler, 2010). Neuroscience is used to explain whether there are certain biological and genetic features that make people born leaders or entrepreneurs. Additionally, neuroscience can be employed to explain abusive leadership behaviors and entrepreneurship; for example, the level of testosterone and its correlation with aggression can be studied (Hoption, Christie and Barling, 2008). Moreover, the role of dopamine and other neurotransmitters can be discussed in relation to reward, attention, and motivation (Ackley and Konopka, 2010). For example, praise increases the level of dopamine in the brain and leads to enjoyment and satisfaction (Peterson et al., 2008). Moreover, dopamine is released when someone is faced with new stimuli (Zurawicki, 2010), and it can be used, for example, to study the reactions to new tasks. Additionally, neuroeconomic approaches show how decisions are made in dissonant conditions. First of all, they allow one to study how individuals make up their minds when two rewarding options are available. Second, they can exemplify how people make decisions when the option has both negative and positive aspects. The third situation involves the presence of two punishing options (Shaw, Dibeehi and Walden, 2010). Thus, they allow one to show the reaction of entrepreneurs who are in different conditions and facing different choices. Another application of neuroentrepreneurship is the issue of leaders' attachment to old ideas and modes of behavior. Since the above-mentioned attachment is related to the activation of the reward system in the brain, individuals are often not eager to implement changes. Thus, leaders take the neuroscientific characteristics into account (Pillay, 2011) if they want to introduce changes in their organizational performance.

Neuroethics

The term neuroethics was first used in the United States by the NewYork Times journalist William Safire at a conference in 2002 (Giordano, 2010). Neuroethics is the ally of neuroscience, especially of such domains as neuroethology and neuromarketing (Ortega and Vidal, 2010). Neuroethics is an interdisciplinary field, benefiting from such areas as neuroscience, medical sciences (neurology, psychiatry, neurosurgery), law, philosophy, and healthcare studies. Within neuroethics, the following areas of interest can be enumerated: research neuroethics, clinical neuroethics, public and cultural neuroethics, reflective and theoretical neuroethics (Racine, 2010), and the ethics of neuroscience can be roughly subdivided into two groups of issues. The first one constitutes the ethics of practice and it is connected with the ethical notions that appear in conducting neuroscientific experiments. The second one entails the ethical implications of science and it deals with the ethical and social connotations that result from neuroscientific studies and can impact various social, ethical, and legal aspects of life (Roskies, 2002). One of the areas is the usage of neuropharmacologies to stimulate mood and cognition, such as the substances used in overcoming jet lag or improving academic performance. The next challenges are the informed consent and resource allocation for deep brain stimulation, the ethical and clinical implications of neuroscience research into consciousness and the issues of “mind reading” and “mind control” (Racine, 2010). As far as the last challenge is concerned, the use of such technologies as fMRI, PET, and MEG may facilitate the decisions on selecting future employees. Since modern neurotechnologies make it possible to study not only one's actions, but also one's thoughts (Farah, 2005), any testing should be conducted by taking into account the issues of mental privacy and data privacy. As Gazzaniga (2005) states, mood-detecting technology can be employed in many domains in life, such as ATM machines, shops, or television. The question related to the ethical dimension concerns the aspect of consumers' consent in using their emotions in providing personalized advertising. Another issue is the security of storing such information and, consequently, the question related to the identity being “robbed and internalized for the marketplace” becomes an important issue (Gazzaniga, 2005:116). The ethical aspect is also related to controlling emotions in organizations. For example, “automatic emotion regulation” can be exercised in companies to teach the brains of workers how to respond to organizational situations by comparing rewards with expectations (Powell and Pucinelli, 2012). However, this may be objected to by workers since they may be against their emotions being viewed and examined during the fMRI experiment. The mentioned ethical issue turns out to be especially important in the commercial applications of conducted research when neuroscientific information is in the hands of private companies and there exists the possibility of eliciting important information on a subject's health condition from the available research data (Haynes, 2011).

The interest in neuroscience, together with the rapid development of tools used in neuroscientific research, has led to the appearance of the notion called neurolaw. Neurolaw (also known as Law and Neuroscience) can be defined as the study of various ways to use neuroscience in and about the legal system. The legal system includes mainly courts but also legislatures, prisons, parole boards, police and attorneys (Sinnott-Armstrong, 2011: 2046). One of its questions is related to the issue of free will as well as antisocial and criminal behavior that can be observed during neuroimaging techniques (Schleim, 2012). Another possible application is the legal aspect of neuroimaging and neuropharmacological treatments (Larrieu, 2012). It is also possible to observe mental states that influence legal decisions, detecting lies, bias, and memories (Sinnott-Armstrong, 2011). It should also be remembered that the role of neuroethical issues depends on the type of industries taken into account. Thus, the medical sector is likely to face more neuroethical concerns than other domains of business activities. One example can be the influence of certain medicines on brain activities, attention, and comprehension as well as potential risks connected with the medication intake.

Another application of neuroscientific study is to research morality in Corporate Social Responsibility and individuals' responses to morally dubious actions. Moreover, neuroimaging can be useful in studying deviant management behaviors, such as addictions, corruption, and aggression. In one study conducted by researchers from Emory University, selected managers were faced with moral dilemmas. It turned out that, during the exposure to the mentioned situations, the active part of the brain was the one where early memories are stored. This proves the other findings that moral attitudes are shaped early in one's life (Peterson et al., 2008). In the last case, it is neuromanagement that shapes neuroscience and the results obtained from the neuromanagement experiments influence the development of other neuroscientific domains. Thus, both of these areas of research may benefit simultaneously from the studies conducted by their researchers.

Neurophysiological methods in international neuromanagement

There are various notions that determine the popularity of neuroscientific tools in the research into international management. Costs and the portability of neuroscientific tools belong to the most important ones. For example, fMRI has to be carried out in a special place owing to its heaviness and to other technical conditions that have to be observed during the employment of this tool. The next factor is the type of neuroscientific observation, whether it is invasive or non-invasive, since the subjects taking part in neuromanagement experiments are not eager to participate in the studies that carry some risk for their feeling or health. At the same time, scientists also opt for non-invasive methods of neuromanagement observation to eliminate potential sideeffects. One of the most popular techniques in neuromanagment is fMRI. Although the costs are quite high in comparison with other research techniques, there are more and more management studies benefiting from the research possibilities of this tool. For example, it is used very widely in neuromarketing. The popularity of this technique in neuromarketing can be discussed through the prism of the elements of marketing. Marketing is related to the four Ps (product, promotion, price, place): product covers the goods and services that are offered to the customer; price encompasses the amount of money customers have to spend if they want to purchase the product; place is connected with the geographical location in which the product is offered to customers; whereas promotion entails all the activities that cover communication and persuasion and their role in attracting customers to some products (Kotler and Armstrong, 2010). Neuromarketing also takes into account these four elements and uses fMRI to study its features. As far as the product is concerned, fMRI may facilitate the research into the neural dimension of product attractiveness. In the case of promotion, MEG can be used to study the impact of affective and cognitive advertisements on neural activities, whereas fMRI can be employed to study the relation between the perceived attractiveness and specific neural activations. Taking into account the dimension of price, fMRI is used to study the influence of price on product preferences and neural activities. Another aspect is the neural correlation with one's willingness to pay. The technique of fMRI is also visible in the studies on place. For example, researchers are interested in finding the framing effect and loyalty when the ventromedial prefrontal cortex is activated (Shaw, Dibeehi and Walden, 2010). Another reason for the popularity of fMRI is the fact that fMRI allows researchers to impose cognitive subtraction to isolate single elements of cognitive processing (Büchel, Karnath and Their, 2006). Thus, the study offers a wide perspective of factors determining each single entity. An example of using fMRI in international management is checking the attractiveness of packages. The findings indicate that different brain regions associated with reward processing, decision-making, and episodic memory may be determinant in choosing the packages. Moreover, attractive cartons and wrappings enhance the level of attention and visual processing (Stoll, Baecke and Kenning, 2008). However, some researchers claim that fMRI has some disadvantages. During the fMRI scan, there is no face to-face interaction since subjects lie on a bed that is placed in a long, narrow tube, with their heads being still. Consequently, there is very limited spontaneity and the environment is artificial (Butler and Senior, 2007) since the subjects cannot be exposed to as many factors as they are during normal shopping circumstances. The other issue limiting the popularity of this tool in modern neuromanagement research is the already mentioned high cost of purchasing and maintaining the machine. The third disadvantage is the lack of portability. Thus, fMRI studies can be difficult to conduct among some managers, who, owing to many duties, cannot come to the laboratory to undergo testing. On the other hand, those who opt for electroencephalography claim that EEG has several advantages in comparison to fMRI. First of all, the cost is lower for conducting large, quantitative, and qualitative studies. Second, since EEG is portable, its usage is not laboratory restricted (Waldman, Balthazard and Peterson, 2011a), e.g., for naturalistic observations of shoppers in a supermarket (Zurawicki, 2010). EEG is also used in studying emotions and cognitive processing in observing and reacting to advertisements (McDaniel and Gates, 1998). Since EEG can be employed to study changes during an ongoing decision process, e.g., to study risky behaviors (Polezzi et al., 2010), this technique can be applied in the organizational studies on risks. Another technique called facial electromyography is used in neuromarketing, international neurostrategy, and neurobusiness. EMG is employed to study negative and positive emotions to radio and TV ads and to show which communication channel is more powerful in terms of eliciting emotions (Katz, 2007). EMG is also used to research prejudice and discrimination (Hess, 2009) and, consequently, it is important in studying the attitude to gender and cultural issues in organizations. The linguistic dimension of international management can be researched with the use of the mentioned methods. Additionally, TMS offers information on cognitive information on language organization (Watkins and Devlin, 2008). Consequently, in the case of international management, it can be employed to observe the discursive side of organizations. Galvanic skin response is also applied in international neuromanagement. One application is the use of the objective emotional assessment (OEA), during which such issues as skin conductance, electrocardiogram, peripheral blood volume, and the activities of facial muscles are measured to check the response to the subjective rating of product emotional features. Such findings take into account how tactile, olfactory, optical, and acoustical effects determine the positive emotional perspective of products (Boucsein and Schaefer, 2008). The recordings of electrodermal activities are used to study emotions and their implications for purchasing behaviors (Boucsein, 2012). Since this tool is portable and, in comparison with other techniques, not very expensive, it is widely used to observe the responses to advertisements and packaging (McDaniel and Gates, 1998).

Conclusion

The aim of this chapter has been to discuss the concept of IM by looking at its relations with neuroscience. Thus, various areas of IM are presented above and their links with neuroscientific research are exemplified. The growing importance of behavioral and cognitive studies, together with the rapid development of neuroscientific methods and techniques, has led to the creation and expansion of issues related to international management viewed from the neuroscientific perspectives. Owing to the continuing rapid expansion of neuroscience itself, as well as the advancement of international (neuro) management, it is suspected that, in the near future, some novel applications of neuroscientific studies will be incorporated into the research into international neuromanagement.

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