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How does homeland security affect U.S. firms' international competitiveness?

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  • Spich, Robert
  • Grosse, Robert

Abstract

This paper frames the issue of homeland security and its relationship to the international competitiveness of U.S. firms in general. This is largely a conceptual statement, identifying the areas of national security (homeland security) that are key to business, and exploring the management concerns of business to the new threats and opportunities that have arisen. We establish the point that homeland security is a purposeful, conscious, and rational response to terrorist events that is an emergent and evolving systems phenomenon. This systems approach is an especially useful way to look at the implications of homeland security in its relation to business. We then look specifically at the kinds of costs and risks that are generated for U.S. international business (exports, imports, incoming and outgoing investments) as a result of this phenomenon. Management strategies for dealing with these costs and risks are explored for U.S. firms. Our conclusion is to demonstrate the scope of analysis that is needed to understand and to managerially cope with the homeland security problem. We show the value of using theory from various disciplines for analyzing a multi-dimensional problem like this. And finally we are able to recommend some policy dimensions for both companies and the U.S. Government toward mitigating the negative impacts of the homeland security problem.

Suggested Citation

  • Spich, Robert & Grosse, Robert, 2005. "How does homeland security affect U.S. firms' international competitiveness?," Journal of International Management, Elsevier, vol. 11(4), pages 457-478, December.
    • Handle: RePEc:eee:intman:v:11:y:2005:i:4:p:457-478
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    1. McCraw, Thomas K., 1975. "Regulation in America," Business History Review, Cambridge University Press, vol. 49(2), pages 159-183, July.
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    Cited by:

    1. Babet Hogetoorn & Michiel Gerritse, 2021. "The impact of terrorism on international mergers and acquisitions: Evidence from firm-level decisions," Journal of Peace Research, Peace Research Institute Oslo, vol. 58(3), pages 523-538, May.
    2. Ramos, Miguel A. & Ashby, Nathan J., 2013. "Heterogeneous firm response to organized crime: Evidence from FDI in Mexico," Journal of International Management, Elsevier, vol. 19(2), pages 176-194.
    3. Alice Y. Ouyang & Ramkishen S. Rajan, 2017. "Impact of Terrorism on Cross-Border Mergers and Acquisitions (M&As): Prevalence, Frequency and Intensity," Open Economies Review, Springer, vol. 28(1), pages 79-106, February.
    4. Bader, Benjamin & Berg, Nicola, 2013. "An Empirical Investigation of Terrorism-induced Stress on Expatriate Attitudes and Performance," Journal of International Management, Elsevier, vol. 19(2), pages 163-175.
    5. Jiménez, Alfredo & Lupton, Nathaniel C., 2021. "Terrorism hazard and infrastructure projects: The moderating role of home experience and institutions," Journal of Business Research, Elsevier, vol. 135(C), pages 721-730.
    6. Al Mamun, Md & Uddin, Gazi Salah & Suleman, Muhammad Tahir & Kang, Sang Hoon, 2020. "Geopolitical risk, uncertainty and Bitcoin investment," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 540(C).
    7. Procasky, William J. & Ujah, Nacasius U., 2016. "Terrorism and its impact on the cost of debt," Journal of International Money and Finance, Elsevier, vol. 60(C), pages 253-266.
    8. Ashby, Nathan J. & Ramos, Miguel A., 2013. "Foreign direct investment and industry response to organized crime: The Mexican case," European Journal of Political Economy, Elsevier, vol. 30(C), pages 80-91.
    9. Lee, Hyoungjin & Chung, Chris Changwha, 2022. "Go small or go home: Operational exposure to violent conflicts and foreign subsidiary exit," Journal of World Business, Elsevier, vol. 57(6).
    10. Ronald Umali Mendoza & Charles Siriban & Tea Jalin Ty, 2019. "Survey Of Economic Implications Of Maritime And Territorial Disputes," Journal of Economic Surveys, Wiley Blackwell, vol. 33(3), pages 1028-1049, July.
    11. Tingbani, Ishmael & Okafor, Godwin & Tauringana, Venancio & Zalata, Alaa Mansour, 2019. "Terrorism and country-level global business failure," Journal of Business Research, Elsevier, vol. 98(C), pages 430-440.
    12. Jürgen Harrer & Andreas Wald, 2016. "Levers of enterprise security control: a study on the use, measurement and value contribution," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(1), pages 7-32, February.

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