Geopoliticizing the Firm: Embraer, Corporate Nationality, and the Geopolitical Constitution of Contracts, Capabilities, and Markets

Transnational corporations (TNCs) drive fast-changing global economic geographies amid fraught geopolitical relations. However, three influential theoretical accounts of the firm, the nexus of contracts, the resource-based view, and Global Production Networks 2.0, still underspecify how corporate nationality and home–host state geopolitical agendas constitute TNCs’ formation, operations, and strategic management. This omission creates a gap in explaining the connections between geopolitical conditions and TNC operations. This article addresses this gap by geopoliticizing the firm. To this end, it integrates key aspects of the three theoretical accounts into a novel conceptual framework that comprises three analytical mechanisms: geopolitical agenda alignment, territorially defined capability formation, and territorially differentiated product development. Empirically, the article primarily draws on twenty-two interviews with elites across different firms and institutions to examine how Embraer, an aerospace producer, evolved following its establishment in 1969 as an integral part of Brazilian state developmentalism. After privatization in 1994, Embraer simultaneously (dis)engaged with multiple state geopolitical agendas to straddle US–China geopolitical tensions and compete internationally. Such proactive geopolitical (dis)engagement augmented Embraer’s ability to secure contracts, create capabilities, and capture markets across multiple countries. Through this case study, the article demonstrates the importance of conceptualizing the entwinement of TNC activities with both corporate nationality and variegated geopolitical contexts.