This study argues that the diversity of a firm’s home base and the underlying learning mechanism positively affect commitment increases. We expect that when a firm enters a new host country, its foreign experiences become more diverse, and thus, it can leverage a broader knowledge base to learn from and subsequently increase extant foreign commitments (i.e., assets). We further examine the moderating effects of parent firm industry diversity and knowledge intensity of the newly added foreign activity and expect both factors to influence the diversity-commitment relation negatively. In our dataset of 13,069 Austrian companies investing abroad between 1989 and 2019, we find support for the main effect and the negative knowledge-intensity moderator. Contrary to our hypothesis, we find a significant positive effect for the industry diversity moderator. The results reveal how changes in a firm’s home base can trigger commitment changes in existing countries.

This paper explores the design of early business models tailored for the Bottom of the Pyramid (BoP), focusing on integrating ecological impact alongside economic viability. While BoP mar-kets present significant economic potential, their unique institutional contexts and lower con-sumer incomes necessitate innovative approaches beyond global replication. Addressing the gap in existing research, which often overlooks ecological sustainability, this study advocates for business models that incorporate circular economy principles, such as reuse and recycling, to extend product lifecycles and reduce environmental footprint. Drawing on literature in interna-tional management, marketing, and innovation management, the paper proposes a blueprint for a sustainable early repurposing business model. This blueprint is exemplified and refined through a multi-method study on the reuse of car batteries for solar storage in remote regions, highlighting technical feasibility and economic, social and ecological benefits. However, eco-nomic viability remains a critical factor for scaling these initiatives. The study concludes by dis-cussing implications for practice and future research directions, aiming to contribute to the de-velopment of inclusive and environmentally conscious business strategies for emerging markets at the Bottom of the Pyramid.

We investigate the effect of impact investment – investing to secure both financial and social returns – on the relationship between country risk and foreign investments. It is well established in the strategy and international business literature that country risk negatively affects foreign direct investment. However, some multinational firms maintain operations in high-risk countries despite significant institutional hazards. Why? We argue that impact investment mitigates the adverse effects of institutional hazards in host countries through two mechanisms: Provision of patient capital, and knowledge transfer and capacity-building programs. These mechanisms make it more economically viable and legitimate for multinationals to sustain operations in high-risk countries. Analyzing 794 U.S. public firms and their subsidiaries in 79 countries from 2000 to 2015, we find that impact investments reduced the investment retrenchment effect of country risk by 20.6%. Our study adds to the research literature on country risk and foreign investment and offers practical insights for multinationals seeking effective tools to address host country institutional hazards.

Tensions between control and autonomy in multinational enterprises (MNEs) have attracted considerable academic interest, which has been additionally fueled by multiple crises following the 2008 global recession. These have intensified the exploration of inter-entity relationships within MNEs and their implications for risk and crisis management and resilience. Our study examines how the autonomy of subsidiaries in a risky Central and Eastern European market (Slovenia) influences risk and crisis management strategies as well as resilience of subsidiaries in the midst of global crises such as the Covid-19 pandemic and war in Ukraine. We analyse the performance of foreign subsidiaries during these two crises (2019–2022) with a particular focus on the impact of centralisation tendencies in the home country of the MNE’s headquarters on subsidiaries’ growth as well as their risk and crisis management responses. The results demonstrate above-average performance of foreign-owned subsidiaries, highlight the role of subsidiary autonomy in risk and crisis management, and show how multinationals prioritise the value creation of subsidiaries in emerging markets by granting them greater autonomy in times of crises.