Caught in the crossfire: Multinational enterprises in the era of geopolitical tensions

Geopolitical tensions are reshaping the global business environment, yet international business research continues to treat geopolitics primarily as an external institutional constraint. This Perspective proposes a shift in focus toward understanding how geopolitical tensions affect multinational enterprises (MNEs) by centering the attention on corporate nationality and how it shapes firm responses to geopolitical risk through organizational design, global value chain configuration, and nonmarket capabilities. We review how classic international business and strategic management theories conceptualize geopolitics, examine the strengths and limitations of existing empirical measures, and identify key avenues for future research. By integrating insights from international business and international relations, this article offers a forward-looking agenda for studying MNEs in an era of geopolitical tensions.