In this article, we make the case for theoretically/logically derived explanatory typologies and their constituent ideal types, arguing that they can provide us with the basis to further understand dynamic and complex contemporary phenomena. We contrast this approach with dominant analytical strategies in international-business research. We show that the greater use of explanatory typologies and their associated ideal types in international-business research facilitates comparisons of similar cases; illuminates key, but relatively under-researched aspects of phenomenon; promotes theory building; and readily supports configurational analyses. By doing this, explanatory typologies can underpin rigorous analyses, and enhance the relevance of research findings on causally complex contemporary phenomena at different analytical levels.