Multinational enterprises’ adaptation strategies under geopolitical risk

This dissertation comprises three empirical chapters examining how multinational enterprises (MNEs) strategically adapt to geopolitical risk, with each chapter focusing on a distinct adaptation strategy. The first study emphasizes the strategic alignment between dyadic-level government relations and MNEs’ strategic human capital allocation. Specifically, it examines the impact of home-host government conflict on MNEs’ staffing decisions regarding the use of expatriates as subsidiary managers. The second study incorporates the contagious nature of geopolitical risk with the reconfiguration potential inherent in each of the MNEs’ host countries. It theoretically conceptualizes and empirically measures a host country’s geopolitical risk-hedging potential to an MNE and investigates how such potential influences MNEs’ divestment decisions in that country. The third study examines sales penalties resulting from country-of-origin-based stigma in the context of online marketplaces. It highlights brand naming as a novel stigma-mitigation strategy employed by international sellers, along with the boundary conditions of this strategy. Together, this dissertation deepens scholarly understanding of MNEs’ adaptation strategies under the new international business paradigm and offers practical implications for how MNEs can effectively respond to the surging geopolitical risk and increasing global disorder.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Business Administration

Grantor

University of Illinois Urbana-Champaign

Year dc:date

2025

Author dc:creator

• Wang, Xin

Contributors dc:contributor

• Yao, Fiona Kun
• Mahoney, Joseph T
• Clougherty, Joseph A
• Li, Jiatao

• International Business
• Geopolitical Risk
• Multinational Enterprises
• Adaptation Strategies

Statement dc:rights

• Copyright 2025 Xin Wang

Language dc:language

en, eng

Handle dc:identifier

https://hdl.handle.net/2142/130156

OAI record oai:identifier

https://www.ideals.illinois.edu/oai-pmh?verb=GetRecord&metadataPrefix=etdms&identifier=oai%3Awww.ideals.illinois.edu%3A2142%2F130156