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Illusions of techno-nationalism
Yadong Luo1,2
1Miami Herbert Business School, University of Miami, Coral Gables, FL 33124-9145 USA.
Journal of International Business Studies
|September 13, 2021
Summary
New techno-nationalism creates significant risks for multinational enterprises (MNEs) by combining geopolitical and economic factors. MNEs can mitigate these risks through strategic defensive or offensive responses to protect their global operations.
Area of Science:
- International Business
- Geopolitics
- Technological Competition
Background:
- Modern techno-nationalism integrates geopolitical, economic, national security, and ideological elements, increasing complexity and disruption for multinational enterprises (MNEs) compared to traditional forms.
- The underlying theoretical logic is rooted in realism, viewing international relations as a zero-sum competition where states employ economic coercion, disregarding technological interdependence and collaborative innovation.
Discussion:
- Techno-nationalism poses substantial challenges to MNEs, particularly those reliant on global technology supply chains and access to foreign markets.
- This phenomenon obstructs international business operations by creating barriers and uncertainties in cross-border trade and investment.
Key Insights:
- New techno-nationalism is a multifaceted construct driven by state-centric realism, contrasting with principles of open innovation and co-opetition.
- MNEs face heightened risks due to the intricate interplay of national security concerns and economic policies.
- The study identifies specific vulnerabilities for MNEs dependent on global supply chains and market access.
Outlook:
- MNEs must develop adaptive strategies, including defensive and offensive measures, to navigate the evolving landscape of techno-nationalism.
- Proactive risk management and strategic positioning are crucial for MNEs to contain potential harm and maintain competitiveness.
- Future research should explore the long-term implications of techno-nationalism on global economic structures and international cooperation.
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