Many studies have focused on internationalization, with few shedding light on de‐internationalization. In this article, we contended that de‐internationalization is common in a world of matured globalization, yet it remains underexplored. We sought to build on the seminal articles on de‐internationalization by extending our understanding of the concept from a voluntary to an involuntary perspective. In particular, we used intellectual property rights as an institutional coercive dimension and set theory as a discerning mechanism to enrich our understanding of de‐internationalization. Our article, which demonstrates the multi‐faceted conditions of de‐internationalization, should benefit formal institutions and policy makers in developing a greater understanding of the relationship between public policies and focal firms' decisions to de‐internationalize. We also hope that our article will contribute to greater visibility of de‐internationalization and make the concept more approachable to our international business audience.