IDEAS home Printed from https://ideas.repec.org/a/eee/worbus/v58y2023i6s1090951623000627.html
   My bibliography  Save this article

Exogenous shocks and MNEs: Learning from pandemics, conflicts, and other major disruptions

Author

Listed:
  • Ciravegna, Luciano
  • Ahlstrom, David
  • Michailova, Snejina
  • Oh, Chang Hoon
  • Gaur, Ajai

Abstract

Exogenous shocks have long been a feature of the global economy, yet they have become particularly salient in recent years. This Special Issue of the Journal of World Business addresses the shift to a New Normal characterized by frequent events that disrupt the international business context, such as the COVID-19 pandemic and the Russia-Ukraine conflict. In this Introduction to the Special Issue, we discuss how the IB literature has treated exogenous shocks. We posit that important lessons can be learned from history, and from the experience of MNEs in the countries of the Global South. We also suggest future research avenues centered around exogenous shocks, international business, and multinational enterprises.

Suggested Citation

  • Ciravegna, Luciano & Ahlstrom, David & Michailova, Snejina & Oh, Chang Hoon & Gaur, Ajai, 2023. "Exogenous shocks and MNEs: Learning from pandemics, conflicts, and other major disruptions," Journal of World Business, Elsevier, vol. 58(6).
    • Handle: RePEc:eee:worbus:v:58:y:2023:i:6:s1090951623000627
    DOI: 10.1016/j.jwb.2023.101487
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1090951623000627
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jwb.2023.101487?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zheng, Weiting & Ang, Siah Hwee & Singh, Kulwant, 2022. "The interface of market and nonmarket strategies: Political ties and strategic competitive actions," Journal of World Business, Elsevier, vol. 57(4).
    2. Aki Tomizawa & Li Zhao & Geneviève Bassellier & David Ahlstrom, 2020. "Economic growth, innovation, institutions, and the Great Enrichment," Asia Pacific Journal of Management, Springer, vol. 37(1), pages 7-31, March.
    3. Pierpaolo Andriani & Bill McKelvey, 2007. "Beyond Gaussian averages: redirecting international business and management research toward extreme events and power laws," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(7), pages 1212-1230, December.
    4. Puhr, Harald & Müllner, Jakob, 2022. "Foreign to all but fluent in many: The effect of multinationality on shock resilience," Journal of World Business, Elsevier, vol. 57(6).
    5. Ivan Montiel & Junghoon Park & Bryan W. Husted & Andres Velez-Calle, 2022. "Tracing the connections between international business and communicable diseases," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1785-1804, October.
    6. Chang Hoon Oh & Jennifer Oetzel, 2022. "Multinational enterprises and natural disasters: Challenges and opportunities for IB research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(2), pages 231-254, March.
    7. Zahra, Shaker A., 2021. "International entrepreneurship in the post Covid world," Journal of World Business, Elsevier, vol. 56(1).
    8. 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).
    9. Ciravegna, Luciano & Brenes, Esteban R., 2016. "Learning to become a high reliability organization in the food retail business," Journal of Business Research, Elsevier, vol. 69(10), pages 4499-4506.
    10. Eid, Marguerite & Loon, Mark, 2023. "CSR as a capability-building response to exogenous shocks by Lebanese MNEs," Journal of World Business, Elsevier, vol. 58(5).
    11. Ajai S Gaur & Xufei Ma & Zhujun Ding, 2018. "Home country supportiveness/unfavorableness and outward foreign direct investment from China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(3), pages 324-345, April.
    12. Kraus, Sina A. & Blake, Benjamin D. & Festing, Marion & Shaffer, Margaret A., 2023. "Global employees and exogenous shocks: considering positive psychological capital as a personal resource in international human resource management," Journal of World Business, Elsevier, vol. 58(3).
    13. Brenes, Esteban R. & Ciravegna, Luciano & Pichardo, Caleb A., 2019. "Managing institutional voids: A configurational approach to understanding high performance antecedents," Journal of Business Research, Elsevier, vol. 105(C), pages 345-358.
    14. Alain Verbeke & Wenlong Yuan & Liena Kano, 2020. "A values-based analysis of bifurcation bias and its impact on family firm internationalization," Asia Pacific Journal of Management, Springer, vol. 37(2), pages 449-477, June.
    15. Barry Eichengreen, 2010. "Lessons of the crisis for emerging markets," International Economics and Economic Policy, Springer, vol. 7(1), pages 49-62, May.
    16. Alvaro Cuervo-Cazurra & Ajai Gaur & Deeksha Singh, 2019. "Pro-market institutions and global strategy: The pendulum of pro-market reforms and reversals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 598-632, June.
    17. Delios, Andrew & Perchthold, Gordon & Capri, Alex, 2021. "Cohesion, COVID-19 and contemporary challenges to globalization," Journal of World Business, Elsevier, vol. 56(3).
    18. Farok J. Contractor, 2022. "The world economy will need even more globalization in the post-pandemic 2021 decade," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(1), pages 156-171, February.
    19. Alain Verbeke & Luciano Ciravegna, 2018. "International entrepreneurship research versus international business research: A false dichotomy?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(4), pages 387-394, May.
    20. Chen, Stephen, 2017. "Profiting from FDI in conflict zones," Journal of World Business, Elsevier, vol. 52(6), pages 760-768.
    21. Murad A Mithani, 2017. "Liability of foreignness, natural disasters, and corporate philanthropy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(8), pages 941-963, October.
    22. Gaur, Ajai & Kumar, Mukesh, 2018. "A systematic approach to conducting review studies: An assessment of content analysis in 25years of IB research," Journal of World Business, Elsevier, vol. 53(2), pages 280-289.
    23. Penrose, Edith, 2009. "The Theory of the Growth of the Firm," OUP Catalogue, Oxford University Press, edition 4, number 9780199573844, Decembrie.
    24. Meyer, Klaus E. & Fang, Tony & Panibratov, Andrei Y. & Peng, Mike W. & Gaur, Ajai, 2023. "International business under sanctions," Journal of World Business, Elsevier, vol. 58(2).
    25. Getachew, Yamlaksira S. & Beamish, Paul W., 2021. "Unbundling the effects of host-country institutions on foreign subsidiary survival: A case for subsidiary heterogeneity," Journal of World Business, Elsevier, vol. 56(4).
    26. Cuervo-Cazurra, Alvaro & Ciravegna, Luciano & Melgarejo, Mauricio & Lopez, Luis, 2018. "Home country uncertainty and the internationalization-performance relationship: Building an uncertainty management capability," Journal of World Business, Elsevier, vol. 53(2), pages 209-221.
    27. Luciano Ciravegna & Snejina Michailova, 2022. "Why the world economy needs, but will not get, more globalization in the post-COVID-19 decade," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(1), pages 172-186, February.
    28. Witt, Michael A. & Lewin, Arie Y. & Li, Peter Ping & Gaur, Ajai, 2023. "Decoupling in international business: Evidence, drivers, impact, and implications for IB research," Journal of World Business, Elsevier, vol. 58(1).
    29. Yadong Luo, 2022. "Illusions of techno-nationalism," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 550-567, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andrews, Daniel S. & Fainshmidt, Stav & Cuervo-Cazurra, Alvaro, 2025. "The home country effect on between- and within-firm performance differences," Journal of World Business, Elsevier, vol. 60(1).
    2. Diletta Pegoraro & Agnieszka Chidlow & Lisa Propris, 2025. "Exploring factors influencing manufacturing home-shoring strategies: insights from three diverse geographical regions," Journal of International Business Policy, Palgrave Macmillan, vol. 8(1), pages 53-79, March.
    3. Alloysius Joko PURWANTO & Ridwan Dewayanto RUSLI & Hafis Pratama Rendra GRAHA & Sirichai KOONAPHAPDEELERT & Reza Miftahul ULUM & Citra Endah Nur SETYAWATI & Nadiya PRANINDITA & Ryan Wiratama BHASKARA, 2025. "Global Pandemic Shocks, Foreign Exposure and Firm Productivity: Evidence from Korean Firm-level Data," Working Papers DP-2024-38, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Shyamala Sethuram & Ajai Gaur, 2024. "Foreign divestment: the missing piece in international business scholarship," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(8), pages 1038-1047, October.
    5. Qu, Hongyan & Ding, Zhujun & Ahlstrom, David & Wu, Changqi & Cai, Huifen Helen, 2025. "When I have to versus when I am able to: Behavioral and resource explanations for firms’ international expansion via exporting," International Business Review, Elsevier, vol. 34(1).
    6. He, Canfei & Li, Jing & Wang, Wenyu & Zhang, Peng, 2024. "Regional resilience during a trade war: The role of global connections and local networks," Journal of World Business, Elsevier, vol. 59(5).
    7. Chun, Wootae & Wang, Zhan & Gon Kim, Hyun, 2024. "Do environmental regulations drive MNEs’ equity ownership? Considering the impact of exogenous shocks on MNEs’ cross-border acquisitions," Journal of Business Research, Elsevier, vol. 174(C).
    8. Dang, Quyen Thao & Rammal, Hussain Gulzar & Ghauri, Pervez N. & Jasovska, Pavlina & Velasquez, Santiago, 2024. "‘Caught in the middle’: Effects on and reactions of Vietnamese timber exporters in the context of US-China economic sanctions," Journal of World Business, Elsevier, vol. 59(6).
    9. Gómez, Jaime & Krammer, Sorin M.S. & Pérez-Aradros, Beatriz & Salazar, Idana, 2024. "Resilience to the pandemic: The role of female management, multi-unit structure, and business model innovation," Journal of Business Research, Elsevier, vol. 172(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Puhr, Harald & Müllner, Jakob, 2022. "Foreign to all but fluent in many: The effect of multinationality on shock resilience," Journal of World Business, Elsevier, vol. 57(6).
    2. Daniel S. Andrews & Stav Fainshmidt & Michael A. Witt & Ajai Gaur, 2025. "Foreign policy: implications for multinational firms," Journal of International Business Policy, Palgrave Macmillan, vol. 8(1), pages 105-119, March.
    3. Chun, Wootae & Wang, Zhan & Gon Kim, Hyun, 2024. "Do environmental regulations drive MNEs’ equity ownership? Considering the impact of exogenous shocks on MNEs’ cross-border acquisitions," Journal of Business Research, Elsevier, vol. 174(C).
    4. Victor Cui & Ilan Vertinsky & Yonggui Wang & Dongsheng Zhou, 2023. "Decoupling in international business: The ‘new’ vulnerability of globalization and MNEs’ response strategies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(8), pages 1562-1576, October.
    5. Fourné, Sebastian P.L. & Zschoche, Miriam & Schwens, Christian & Kotha, Reddi, 2023. "Multinational family firms’ internationalization depth and breadth following the global financial crisis," Journal of World Business, Elsevier, vol. 58(3).
    6. Vassiliki Bamiatzi & Steven A. Brieger & Özgü Karakulak & Daniel Kinderman & Stephan Manning, 2025. "The Rise of Partisan CSR: Corporate Responses to the Russia–Ukraine War," Journal of Business Ethics, Springer, vol. 198(2), pages 263-291, May.
    7. Marcelo Bucheli & Luciano Ciravegna & Luis Felipe Sáenz, 2023. "The octopus that shrank: A historical analysis of how multinationals address policy and contractual uncertainty in a global value chain," Strategic Management Journal, Wiley Blackwell, vol. 44(13), pages 3289-3323, December.
    8. Nguyen, Harvey & Pham, Anh Viet & Pham, Man Duy (Marty) & Pham, Mia Hang, 2023. "Business resilience: Lessons from government responses to the global COVID-19 crisis," International Business Review, Elsevier, vol. 32(5).
    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. ZHANG, Huan & MI, Lili & SHAO, Xuefeng & BU, Juan, 2024. "Demystifying pathways of composition-based international strategies under the de-globalization world: A configurational approach," Journal of International Management, Elsevier, vol. 30(2).
    11. Huang, Dongdong & Tsui-Auch, Lai Si & Dieleman, Marleen & Gomulya, David, 2024. "Politically connected EMNCs in a (de)globalising world: A review and future research directions," International Business Review, Elsevier, vol. 33(3).
    12. George, Gerard & Schillebeeckx, Simon J.D., 2022. "Digital transformation, sustainability, and purpose in the multinational enterprise," Journal of World Business, Elsevier, vol. 57(3).
    13. Thein, Htwe Htwe & Grosman, Anna & Sosnovskikh, Sergey & Klarin, Anton, 2024. "Should we stay or should we exit? Dilemmas faced by multinationals under sanctioned regimes," Journal of World Business, Elsevier, vol. 59(6).
    14. Kraus, Sina A. & Blake, Benjamin D. & Festing, Marion & Shaffer, Margaret A., 2023. "Global employees and exogenous shocks: considering positive psychological capital as a personal resource in international human resource management," Journal of World Business, Elsevier, vol. 58(3).
    15. Luciano Ciravegna & Snejina Michailova, 2022. "Why the world economy needs, but will not get, more globalization in the post-COVID-19 decade," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(1), pages 172-186, February.
    16. Ahmad Arslan & Ofra Bazel-Shoham & Matthew Imes & Sang Mook Lee & Amir Shoham, 2023. "Protectionism and Cross-Border Mergers and Acquisitions Undertaken by US Multinational Enterprises: The Moderating Role of Intellectual Property Rights Protection," Management International Review, Springer, vol. 63(5), pages 697-730, October.
    17. Fjellström, Daniella & Bai, Wensong & Oliveira, Luis & Fang, Tony, 2023. "Springboard internationalisation in times of geopolitical tensions," International Business Review, Elsevier, vol. 32(6).
    18. Muhammad Farhan Bashir & Benjiang MA & Luqman Shahzad & Biao Liu & Qiangjia Ruan, 2021. "China's quest for economic dominance and energy consumption: Can Asian economies provide natural resources for the success of One Belt One Road?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(3), pages 570-587, April.
    19. 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.
    20. Utesch-Xiong, Fredrik & Leymann, Gunnar & Lundan, Sarianna M., 2024. "More policy is not always effective policy: How policy coherence affects firm internationalization," International Business Review, Elsevier, vol. 33(3).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:worbus:v:58:y:2023:i:6:s1090951623000627. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.