Farok J. Contractor, John Cantwell, Gary Gereffi, and Karl P. Sauvant, “The Shift to a More Turbulent IB Environment, and How MNEs Respond to this Shift”, in Special Issue of the International Business Review, vol. 35 (2026), pp. 1-12.
Since the mid-2010s, multinational enterprises (MNEs) have operated in an increasingly turbulent international business (IB) environment characterized by geopolitical frictions, trade protectionism, intensified FDI screening, and assertive techno-nationalist industrial policies. These developments mark a shift from the efficiency-driven globalization of 1980–2016 toward strategies emphasizing supply chain resilience and local responsiveness. This paper contrasts the relative stability of the neoliberal era with today’s fragmented regulatory landscape, tracing the transition from multilateralism to renewed economic nationalism. It examines how evolving industrial policies affect MNEs from advanced and emerging economies and identifies adaptive responses—including reconfiguring global value chains, increasing inventories, diversifying suppliers, engaging in non-market strategies, and enhancing digital transparency. The paper concludes by outlining alternative trajectories for globalization: a bifurcation into hegemon-led blocs or a revival of multilateral cooperation grounded in comparative advantage, knowledge diffusion, and the enduring mutual gains from cross-border investment.