This paper explores the dynamic technological catch-up strategies of Chinese multinational enterprises (CMNEs) amidst escalating US-China trade tensions and de-globalization. It seeks to answer: (1) How do external shifts affect latecomers' technology catch-up in a changing global context? (2) How do CMNEs dynamically respond in a restructured international business (IB) landscape? Employing a time-varying difference-in-differences (DID) analysis with data from 625 Chinese telecommunication firms (2007-2020), the study examines external changes' impact on catch-up performance. It also delves into dynamic capabilities' role in competitive strategizing for enhanced catch-up. A framework is proposed to identify strategies that activate firms' dynamic capabilities, charting a successful catch-up course in China's mobile communications. The empirical findings underscore the importance of sensing strategies for technological and international catch-up, highlighting the influence of technological shifts, market demands, and FDI on EMNEs' strategies. The study showcases CMNEs' strategic agility in leveraging global changes for innovation and growth, securing a competitive edge in the international arena

The US-China dispute has multifaceted effects on international business, necessitating scholarly investigation through the geopolitical lens. We introduce the concept of "inter-US-China-ally (IUCA) diversification" to characterize the extent of multinational enterprises’ (MNE) business activities spread across US-ally and China-ally countries. Leveraging insights from corporate diplomacy and real options theory, this study examines the impact of IUCA diversification on the performance of Chinese MNEs. Our findings reveal a positive relationship between IUCA diversification and Chinese MNEs’ performance amid escalating tensions between the US and China. Additionally, we discover that the international experience diversity of the top management team (TMT) negatively moderates this positive relationship, while the TMT’s functional diversity does not show a significant moderating effect. These findings highlight the nuanced dynamics in a divided global economy and carry significant implications for both theoretical understanding and practical applications for MNE performance in a bifurcated world.

This study focuses on the strategic choices of firms in response to sanctions by looking into the impact of sanctions on the activities of foreign companies in the sanctioned country. This contributes to our understanding on the impact and relevance of sanctions in today’s business landscape. As a result of the Russo-Ukrainian war, multinational companies (MNCs) have been under great pressure from both governments and social activists to look at the continuity of their operations in Russia. The set of strategic choices related to investments in a foreign country is well known to international business (IB) and strategy scholars. But the rapid institutional change driven by war events and related waves of sanctions resulted in dramatized choices executives faced. Should firms withdraw their assets and leave the country? Or perhaps buy time observing how the conflict unfolds? Could they continue their operations or consider digging in their exposure to the Russian market benefiting from opportunities as their competitors scale back? The uniqueness of the scale of the war forced MNCs to respond to those and similar questions in a very short time. Through our study we aim to explain the drivers of the strategic decision to disinvest from Russia.

While previous research has focused on the effects of institutions on MNE behaviour, it has largely ignored the rhetorical role of actors shaping these institutions. This study investigates the impact of populist movements, which have gained significant traction in Europe over the past decade, on foreign direct investments. Populists, characterized by their anti-establishment orientation and opposition to liberal economics and globalization, can challenge and erode formal institutions through their rhetoric. This paper analyses the manifestos of populist parties to understand their ideas and sentiments, integrating these with the individual characteristics of party leaders. By exploring the rhetoric of populists, the study aims to provide a nuanced understanding of how populist movements influence foreign direct investments. The findings contribute to a deeper theoretical understanding of institutions, highlighting the importance of considering the actors behind them. The study also advances research on populism in international business, offering insights into the implications of populist rhetoric for MNEs and suggesting several avenues for future research.

While previous research has discussed the relationship between democracy and multinational enterprises, the impact of populism on corporate social responsibility (CSR) behavior remains to be further explored in the context of democratic decline. We posit that reshoring and localized production, seen by the Trump administration as key strategies for boosting domestic employment—particularly in low-skill (low-wage) positions—lead corporations, influenced by populist policies, to reduce their overseas investments. Additionally, we consider CSR as a focal behavior of corporations, arguing that to serve the objectives of a populist government and its political community, U.S. manufacturing multinationals must prioritize substantial and stable provision of low- to mid-skill jobs in the domestic market. Furthermore, in alignment with populist ideologies, U.S. manufacturing multinationals may have reduced or are compelled to reduce investments in CSR projects related to race, gender, immigration, refugees, and environmental issues. Our study examines the outward investment, CSR performance, and irresponsible behavior of U.S. manufacturing firms from 2010 to 2020, with results supporting our hypotheses. Our research further explores the interaction between politics and corporations within an international business context.

This study examines the dynamics of global exogenous shocks on cross-border Mergers and Acquisitions (CBM&As), focusing specifically on the nature and properties of exogenous shocks. In addition, we thoroughly investigate the impact of the institutional quality of the home country on that relationship. To support our rationale and empirically validate our hypotheses, we employed Vector Error-Correction Models (VECM) to assess the influence of different exogenous shocks on CBM&A, using a sample of 1622 multinational companies, encompassing 6848 cross-border M&A deals from 1997 to 2022. Our results demonstrate that exogenous shocks have varying natures, but their properties can be mitigated or amplified based on the institutional quality of the acquiror home country. We test different natures of exogenous shocks, distinguishing between war, global pandemic, and financial crisis as three different exogenous shocks. We capture their differences in terms of duration and depth. Our findings reveal that global pandemics have emerged as the most significant predictor of CBM&As fluctuation. Also, the direction of distinct exogenous shocks might be similar, even if they have distinct nature. We provide empirical insights for analyzing the nature and properties of exogenous shocks, profoundly exploring the moderating effect of the home country's institutional quality.