In Praise of Inefficiency: Rethinking Global Strategy in a Multipolar World Order

This article argues that the shift from a relatively stable unipolar system to a fragmented multipolar world undermines efficiency-driven global strategies of multinational enterprises (MNEs). Highly optimized value chains, while cost-effective, are increasingly fragile under systemic geopolitical disruptions. The paper reframes inefficiency, such as redundancy, geographic dispersion, and operational flexibility, as a strategic asset for resilience. Building on real options logic, it proposes the “Three Dimensions of Strategic Inefficiency for Resilience” as a framework for enhancing adaptability. The study concludes that in volatile environments, resilience is achieved not despite inefficiency, but through its deliberate design.