Geopolitical tensions: risks and challenges for internationally scaling businesses

P.G. Bretas, Vanessa, & Tippmann, Esther. (2025). Geopolitical tensions: risks and challenges for internationally scaling businesses. Multinational Business Review, 1-19. https://doi.org/10.1108/MBR-07-2025-0244

Abstract

Purpose This article aims to explore the implications of geopolitical tensions for internationally scaling businesses. It is suggested that internationally scaling firms may have a disproportionate exposure to the risks arising from geopolitical tensions and phenomena like techno-nationalism and trade protectionism due to their lack of resources and resilience compared to matured multinational enterprises. This article also examines the conditions under which scaling businesses may emerge as relevant political actors, either as agents or as instruments of the state. Design/methodology/approach This article draws on international relations theory, especially the logics of cooperation and conflict, which provide complementary insights into how geopolitical disruptions may influence cross-border scaling. It highlights how geopolitical tensions impact critical aspects of international scaling, including the ability to replicate business models, manage the speed and scope of their rapid growth, secure critical inputs, and leverage digitalization. Findings Both cooperation and conflict logics in international relations underscore the adverse effects of geopolitical disruptions on international scaling. Geopolitical tensions introduce significant risks and uncertainties that affect the unique dynamics of international scaling, leading to heightened vulnerabilities. The authors identify key mechanisms through which these tensions impact cross-border scaling. They also examine how scaling businesses engage with geopolitics in two distinct roles, acting as agents shaping the geopolitical environment and as instruments advancing state-driven objectives. Originality/value International business scholarship pays increasing attention to how firms can navigate rising geopolitical tensions and manage associate risks. This paper offers a context-sensitive view by examining internationally scaling firms and suggests areas for future research.

Publisher

Emerald

Rights

CC BY

cb

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