An ‘EDGES’ framework for navigating MNE strategy in a fragmented world: A systematic literature review on anti-globalization and deglobalization

Abstract

Multinational enterprises (MNEs) are navigating a new landscape due to disruptions in global supply chains and escalating geopolitical tensions in various regions. These challenges arose from a worldwide pandemic, along with the emergence of new digital technologies (e.g., AI, 5G) and the growing importance of data as a key production factor. This research systematically examines the historical causes of anti-globalization and deglobalization through a comprehensive and critical review of relevant literature. Our findings indicate that anti-globalization initially spread among developing countries before appearing in developed countries, while the trend towards deglobalization has consistently intensified. We introduce the ‘EDGES’ framework, which encompasses Economic Systems, Digital Disruptions, Geopolitical Fracture, Environmental Sustainability, and Socio-Cultural Ideology. This framework captures the crucial challenges that MNEs currently face and will face prospectively, assisting in the establishment of a dynamic strategic response mechanism (i.e., from passive compliance for minimizing risks, defensive adaptation for maintaining competitive positioning, to an integrated approach for reshaping the global landscape). This article provides valuable theoretical insights and practical managerial implications for MNEs navigating the complexities of the digital economy era.