{"title":"Go small or go home: Operational exposure to violent conflicts and foreign subsidiary exit","authors":"Hyoungjin Lee , Chris Changwha Chung","doi":"10.1016/j.jwb.2022.101361","DOIUrl":null,"url":null,"abstract":"<div><p><span>This study aims to open the black box of heterogeneous responses to violent conflicts by focusing on subsidiaries’ operational exposure to violent conflict and their decisions to exit host countries. Drawing on real options theory, we propose a viable approach </span>multinational enterprises can take when they encounter violent conflicts in their operating locations. Our analysis of 3,479 foreign subsidiaries operating in 11 countries over 26 years suggests that the exit decision of any given subsidiary located in a conflict-affected country depends on its operational scope. However, this effect depends on the characteristics of the operations the subsidiary undertakes, specifically, whether the subsidiary conducts natural resource-seeking operations and the degree of operational overlap with the same-parent affiliates.</p></div>","PeriodicalId":51357,"journal":{"name":"Journal of World Business","volume":"57 6","pages":"Article 101361"},"PeriodicalIF":8.9000,"publicationDate":"2022-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of World Business","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1090951622000529","RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
This study aims to open the black box of heterogeneous responses to violent conflicts by focusing on subsidiaries’ operational exposure to violent conflict and their decisions to exit host countries. Drawing on real options theory, we propose a viable approach multinational enterprises can take when they encounter violent conflicts in their operating locations. Our analysis of 3,479 foreign subsidiaries operating in 11 countries over 26 years suggests that the exit decision of any given subsidiary located in a conflict-affected country depends on its operational scope. However, this effect depends on the characteristics of the operations the subsidiary undertakes, specifically, whether the subsidiary conducts natural resource-seeking operations and the degree of operational overlap with the same-parent affiliates.
期刊介绍：
The Journal of World Business holds a distinguished position as a leading publication within the realm of International Business. Rooted in a legacy dating back to 1965, when it was established as the Columbia Journal of World Business, JWB is committed to disseminating cutting-edge research that reflects significant advancements in the field. The journal actively seeks submissions that propel new theoretical frameworks and innovative perspectives on International Business phenomena. Aligned with its domain statement, submissions are expected to possess a clear multinational, cross-border, or international comparative focus, while remaining pertinent to the study of management and organizations. JWB particularly encourages submissions that challenge established theories or assumptions, presenting pioneering or counterintuitive findings. With an inclusive approach, the journal welcomes contributions from diverse conceptual and theoretical traditions, encompassing allied social sciences and behavioral sciences. Submissions should either develop new theories or rigorously test existing ones, employing a variety of qualitative, quantitative, or other methodological approaches. While JWB primarily caters to scholars and researchers, it values contributions that explore implications for Multinational Enterprises and their management, as well as ramifications for public policy and the broader societal role of business.
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