MNEs and Exogenous Pandemic Shocks through COVID-19: From Context to GVC Agility

Discussion Papers

No.820

by Gabriele Suder, Bo Meng, Yuning Gao

June 2021

ABSTRACT

In International Business (IB), the discussion of COVID-19 related GVC models driving resilience has taken momentum since May 2020. This study opts for an integrative review to help create new knowledge through the conceptualisation of exogenous shock context with its succession to disruptive responses, leading to GVC impacts through country– and MNE- dependencies, with the residual impact determining the balance between Just-in-Time and Just-in-case that, if agile, allows alignment with context. To this effect, we examine the extant body of IB literature as current stock of collective IB knowledge, highlighting research avenues supporting further conceptualizing and theorizing of GVCs.

Keywords: COVID-19 pandemic, Multinational Enterprise (MNE), global value chain, exogenous shock, supply chain vulnerability, resilience

JEL classification: F2, F6, H12

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