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The (COVID-19) pandemic and the new world (dis)order

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  • Hitt, Michael A.
  • Holmes, R. Michael
  • Arregle, Jean-Luc

Abstract

The COVID-19 pandemic produced a significant environmental jolt that has altered the trajectories of economies and institutions and the strategies of MNEs. We examine the pandemic effects on countries’ political and regulatory institutions, the interplay between their formal and informal institutions and the resulting environmental uncertainty. These changes are transforming the global landscape, MNEs’ raison d’être and their international strategies. MNEs are having to change or develop new country- and firm-specific advantages, refashion their FDI, focus supply chain networks, and emphasize regional strategies and localization. Although these strategies may help them to bound uncertainty, they produce other forms of risk. A new economic order is likely to arise along with transformed MNEs.

Suggested Citation

  • Hitt, Michael A. & Holmes, R. Michael & Arregle, Jean-Luc, 2021. "The (COVID-19) pandemic and the new world (dis)order," Journal of World Business, Elsevier, vol. 56(4).
    • Handle: RePEc:eee:worbus:v:56:y:2021:i:4:s1090951621000225
    DOI: 10.1016/j.jwb.2021.101210
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    8. Omrane Guedhami & April Knill & William Megginson & Lemma W. Senbet, 2023. "Economic impact of COVID-19 across national boundaries: The role of government responses," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(7), pages 1278-1297, September.
    9. Ahmadova, Gozal & Delgado-Márquez, Blanca L. & Pedauga, Luis E. & Leyva-de la Hiz, Dante I., 2022. "Too good to be true: The inverted U-shaped relationship between home-country digitalization and environmental performance," Ecological Economics, Elsevier, vol. 196(C).
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