Assessing Geopolitical Risk: A Multi-Level Approach for Top Managers of Multinationals

Villa, María Andrea De

doi:10.46697/001c.67875

Cited by 10 publications

(6 citation statements)

References 9 publications

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“…Let's start our analysis from conventional financial analysis. A political disruption potentially affects the revenues, costs and risks of an operation (De Villa, 2023;Meyer, Fang, Panibratov, Peng, & Gaur, 2023), and thereby influences (usually reduces) decision parameters such as net present value (NPV). The financial analysis however cannot be limited to the operations in one country alone.…”

Section: Exit Decision Processmentioning

confidence: 99%

It’s Hard to Say Goodbye: Managing Disengagement during Political Disruptions

Meyer¹,

Estrin

2023

AIB Insights

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When companies experience political disruptions to their global business, such as Myanmar 2020 or Russia 2022, challenges in the host economy may be compounded by home country pressures to disengage. How can MNEs navigate such economic and ethical complexity? We suggest that MNEs facing pressures to exit should organize their decision process in three steps: First, clarify the financial implications considering the implications of disengagement for operations outside the focal country. Second, assess the ethical implications of continuing operations in the country. Third, opting to disengage, assess the merits of alternative disengagement strategies, including partial and full exit.

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Section: Exit Decision Processmentioning

confidence: 99%

It’s Hard to Say Goodbye: Managing Disengagement during Political Disruptions

Meyer¹,

Estrin

2023

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“…The use of such multiple levels of analysis originates in IR studies (Waltz, 1954) and was further developed in Singer (1961). More recently a multi-level approach has been suggested by De Villa (2023) for the assessment of geopolitical risk by top managers of MNEs.…”

Section: Figure 2 Levels Of Analysis For Understanding Geopolitics In Ibmentioning

confidence: 99%

“…Scenario planning, contrarian thinking, and risk insurance are common practices that could help in developing geopolitical resilience (Bremmer & Keat, 2010). Moreover, the transition to thinking about resilience as an endogenous and continuous process (i.e., 'bouncing-with' geopolitics) will draw upon an extensive range of capital forms (e.g., social, cultural, leadership, economic, ecologi-cal) and require a multilevel approach (De Villa, 2023;Menzies & Raskovic, 2020).…”

Section: Actionable Insightsmentioning

confidence: 99%

From Fragmented Geopolitics to Geopolitical Resilience in International Business

Bozonelos

Tsagdis

2023

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We provide a holistic framework for enhancing geopolitical resilience in IB, comprising four complimentary views (inside-in, inside-out, outside-in, and outside-out) along with actionable insights to key stakeholders (e.g., practitioners) grappling with geopolitics in IB. We recommend to: (i) treat geopolitics as an endogenous and continuous process, (ii) anticipate the effects of larger politico-economic dynamics, (iii) enhance resilience from an outside-out perspective, (iv) pursue multilevel analysis to that effect. Finally, we introduce a novel and more fundamental conceptualization of resilience to those encountered in the literature (e.g., of ‘bouncing back’, ‘above’, or ‘beyond’). Namely, ‘bouncing with’ the waves of contemporary geopolitics.

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“…The management, strategy, and international business literature has been overwhelmed of late with papers asserting the return of political risk and reflecting on the impact of geopolitics in a de-globalizing, conflict-ridden world (see, inter alia, De Villa, 2023;Luo and Van Assche, 2023;Meyer et al, 2023;Ratten, 2023;or Sheth and Uslay, 2023). Of course, in reality, political risk never went away (Hartwell and Devinney, 2021), even in the heady days of the globalization of the 1990s (Henisz et al, 2010), as global integration brought its own risks, including JEL classification -F1, F3, N4 synchronization of monetary policies across developed economies (Chatterjee, 2016) and the easier transmission of political shocks across countries (Pak et al, 2015).…”

Section: Introductionmentioning

confidence: 99%

Diplomacy and MNE strategy: how international relations can influence international business

Hartwell,

Ursprung

2024

MBR

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Purpose This study, a perspective piece, aims to argue that one particular slice of political institutional operations – the conduct of international relations – offers a clue to the possible risks that businesses face from geopolitics. Design/methodology/approach The authors examine the various facets of international relations and diplomacy, including the processes and arenas, to show the relevance of statecraft for firms looking to minimize political risk. Findings By understanding the role of diplomacy and statecraft as a process, firms can better prepare themselves for events that have far-reaching ramifications. This is very different than minimizing risk from inherent geopolitical tensions and allows for a more flexible approach to understanding risk levels in the global arena. Originality/value International business scholarship has focused on institutions and their effects on firms and has recently begun to re-examine the role of geopolitics and political risk on firm performance and decisions. However, the current literature continues to have a superficial understanding of institutional processes and their impact on business, especially when it comes to the daily workings of political institutions.

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Assessing Geopolitical Risk: A Multi-Level Approach for Top Managers of Multinationals

Cited by 10 publications

References 9 publications

It’s Hard to Say Goodbye: Managing Disengagement during Political Disruptions

It’s Hard to Say Goodbye: Managing Disengagement during Political Disruptions

From Fragmented Geopolitics to Geopolitical Resilience in International Business

Diplomacy and MNE strategy: how international relations can influence international business

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