Should I stay or should i go? How Danish MNEs in Russia respond to a geopolitical shift

Michael Mol, Larissa Rabbiosi, Grazia Santangelo

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Abstract

Geopolitical shifts are having an increased impact on multinational enterprises. We propose a framework that illustrates how corporate responses to geopolitical shifts vary with operational and reputational considerations. We build our framework from evidence of how five Danish multinationals with operations in Russia responded to the Russian invasion of Ukraine. The selected cases highlight several drivers of operational and reputational considerations that offer reasons for MNEs’ heterogeneity in strategic responses. Based on our framework, we derive recommendations for managers in terms of increased preparedness and awareness. We also recommend that policymakers reconsider their strategies for using corporations as geopolitical instruments.
Original languageEnglish
JournalAIB Insights
Early online date3 Feb 2023
DOIs
Publication statusE-pub ahead of print - 3 Feb 2023

Keywords

  • geopolitics
  • operational costs
  • reputational costs
  • exit strategy
  • Denmark
  • invasion of Ukraine

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