How do multinational enterprises respond to geopolitics? A review and research agenda
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Date
2025-04-17
Authors
Moura, Stephanie Tonn Goulart
Lawton, Thomas C.
Tobin, Damian
Journal Title
Journal ISSN
Volume Title
Publisher
John Wiley & Sons, Inc.
Published Version
Abstract
International business research emphasizes the importance of geopolitics to multinational enterprise (MNE) strategic decision‐making. Yet, insights and evidence are dispersed across levels of analysis and disciplinary perspectives, making it difficult to determine how exactly MNEs respond to geopolitics. Leveraging a sample of 97 papers from journals in strategy, international business and management, we clarify the impact of geopolitics on home and host country relations and the interplay with MNE strategic decision‐making. In advancing existing knowledge boundaries, we make sense of MNE responses to geopolitically induced uncertainty by accounting for MNEs’ heterogeneous political capabilities and investment real options. We show that when MNEs have strong political capabilities, they often opt for a shaping engagement response to influence home–host country relations. However, weak political capabilities limit investments with flexible real options and restrict investments with committed real options, leading to adaptive engagement, non‐engagement and exit responses. Finally, we outline an agenda for future studies on the topic.
Description
Keywords
International business research , Geopolitics , Multinational enterprise (MNE) , Strategic decision-making
Citation
Moura, S. T. G., Lawton, T. C. and Tobin, D. (2025) 'How do multinational enterprises respond to geopolitics? A review and research agenda', International Journal of Management Reviews, pp. 1–21. https://doi.org/10.1111/ijmr.12399