Multinational enterprises’ adaptation strategies under geopolitical risk
Wang, Xin
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https://hdl.handle.net/2142/130156
Description
Title
Multinational enterprises’ adaptation strategies under geopolitical risk
Author(s)
Wang, Xin
Issue Date
2025-07-11
Director of Research (if dissertation) or Advisor (if thesis)
Yao, Fiona Kun
Doctoral Committee Chair(s)
Yao, Fiona Kun
Committee Member(s)
Mahoney, Joseph T
Clougherty, Joseph A
Li, Jiatao
Department of Study
Business Administration
Discipline
Business Administration
Degree Granting Institution
University of Illinois Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
International Business
Geopolitical Risk
Multinational Enterprises
Adaptation Strategies
Language
eng
Abstract
This dissertation comprises three empirical chapters examining how multinational enterprises (MNEs) strategically adapt to geopolitical risk, with each chapter focusing on a distinct adaptation strategy. The first study emphasizes the strategic alignment between dyadic-level government relations and MNEs’ strategic human capital allocation. Specifically, it examines the impact of home-host government conflict on MNEs’ staffing decisions regarding the use of expatriates as subsidiary managers. The second study incorporates the contagious nature of geopolitical risk with the reconfiguration potential inherent in each of the MNEs’ host countries. It theoretically conceptualizes and empirically measures a host country’s geopolitical risk-hedging potential to an MNE and investigates how such potential influences MNEs’ divestment decisions in that country. The third study examines sales penalties resulting from country-of-origin-based stigma in the context of online marketplaces. It highlights brand naming as a novel stigma-mitigation strategy employed by international sellers, along with the boundary conditions of this strategy. Together, this dissertation deepens scholarly understanding of MNEs’ adaptation strategies under the new international business paradigm and offers practical implications for how MNEs can effectively respond to the surging geopolitical risk and increasing global disorder.
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