| Institution: | 1. KMU International Business School, Kookmin University, Seoul, Korea;2. Korea University Business School, Korea University, Seoul, Korea;1. University of Wyoming, Business Building 351, 1000 E. University Ave, Laramie, WY 82071;2. Universität Paderborn, Warburger Str. 100, 33098 Paderborn NRW, Deutschland;3. Kansas State University, Department of Management, College of Business Administration, Business Building 3092, Manhattan, KS 66502 USA;4. Universität Paderborn, Fakultät für Wirtschaftswissenschaften, Lehrstuhl für International Business, Warburger Straße 100, 33098 Paderborn;1. Department of Management and International Business, Florida International University College of Business, United States;2. Naveen Jindal School of Management, University of Texas at Dallas, United States;3. University of Kent Business School, Kent ME4 4AG, United Kingdom;4. Faculty of Business Administration, University of Macau, Macao;5. Faculty of Business and Economics, Monash University, Australia;6. Department of Management, City University of Hong Kong, Hong Kong;1. Faculty of Management and Business, Tampere University, Kanslerinrinne 1, 33100 Tampere, Finland;2. Jyväskylä University School of Business and Economics, University of Jyväskylä, P.O. Box 35, FI-40014, Jyväskylä, Finland |
| Abstract: | This study aims to open the black box of heterogeneous responses to violent conflicts by focusing on subsidiaries’ operational exposure to violent conflict and their decisions to exit host countries. Drawing on real options theory, we propose a viable approach multinational enterprises can take when they encounter violent conflicts in their operating locations. Our analysis of 3,479 foreign subsidiaries operating in 11 countries over 26 years suggests that the exit decision of any given subsidiary located in a conflict-affected country depends on its operational scope. However, this effect depends on the characteristics of the operations the subsidiary undertakes, specifically, whether the subsidiary conducts natural resource-seeking operations and the degree of operational overlap with the same-parent affiliates. |
