Populism and Its Effect on International Business Strategy

This dissertation investigates the complex relationship between populism and international business strategy, with a particular focus on how populist mobilizations influence firms' location decisions and strategic planning. As populism continues to shape political dynamics globally, it presents significant challenges for businesses operating in or considering entry into markets governed by populist regimes. Utilizing institutional theory, this study examines the distinct political risks associated with populism, including anti-establishment ideology, the weakening of democratic institutions, and a tendency toward short-term, reactive policymaking. The research explores the consequences of these risks for firms, particularly in emerging markets, where populism often exacerbates uncertainty and economic volatility. By analyzing the impact of populism on firms' geographic decisions, this dissertation provides insights into the strategic considerations businesses must weigh when operating under populist governments. Additionally, it discusses populism's role in altering democratic processes and its effects on the political environment, which in turn affects corporate strategy. Empirical evidence is drawn from case studies in regions where populism has had a significant impact, such as Latin America and Eastern Europe. These cases highlight the diverse strategies firms employ to mitigate the risks posed by populist regimes, including adapting business models, engaging with local stakeholders, and reassessing their geographic presence. The findings offer a deeper understanding of how political shifts influence business strategy and provide practical guidance for firms seeking to navigate the challenges of operating in politically unstable environments. This study advances international business (IB) literature on the intersection of politics and international business strategy while offering practical recommendations for business leaders and policymakers. It emphasizes the importance of strategic adaptability and the need for comprehensive risk assessment when making location decisions in regions influenced by populism. The insights derived from this research are critical for companies aiming to maintain competitive advantage and achieve long-term success in a rapidly evolving global landscape.