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From the US–China decoupling to a multifoci network: MNCs’ adaptive responses

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  • Hossain, Md Tareq Bin
  • Naoumova, Irina
  • Nardi, Nazly Katherine
  • Liou, Ru-Shiun

Abstract

The ongoing United States (US) and China decoupling has intensified uncertainty in global trade, compelling multinational corporations (MNCs) to reassess and restructure their resource dependencies and adapt to the new global environment. Drawing on resource dependency theory (RDT) and institutional theory, this study examines the impact of the US–China decoupling on MNCs and highlights their actions for navigating the resulting complexities. To address these complexities, MNCs are strategically relocating their operations to other emerging economies like Latin America, the Caribbean, Africa, India, or ASEAN nations. This process of MNC relocations will lead to a multifoci network economy, in which firms develop resilience via regional diversification and institutional adaptation. By reconfiguring their operations, MNCs not only navigate geopolitical disruptions but also enhance long-term sustainability and competitive advantage. This study contributes to the literature by providing a theoretical and practical framework for understanding how MNCs proactively manage uncertainty amid shifting global trade dynamics.

Suggested Citation

  • Hossain, Md Tareq Bin & Naoumova, Irina & Nardi, Nazly Katherine & Liou, Ru-Shiun, 2026. "From the US–China decoupling to a multifoci network: MNCs’ adaptive responses," Business Horizons, Elsevier, vol. 69(3), pages 319-334.
    • Handle: RePEc:eee:bushor:v:69:y:2026:i:3:p:319-334
    DOI: 10.1016/j.bushor.2025.04.007
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