Navigating Polycrisis: Resilience Strategies of Lead Firms in Global Production Networks

Abstract

Several disruptive events - such as the COVID-19 pandemic, the war in Ukraine, intensifying natural catastrophes, and trade wars - have sent shockwaves through global markets and are severely testing Multinational Enterprises (MNEs) and Global Production Networks (GPNs). Lead firms - MNEs with the ability to coordinate production and influence strategic directions in their GPNs - are key players and critical change agents (Dicken, 2015). While lead firms are embedded within broader social, ecological, and institutional systems, they have the agency to make strategic choices that align with their business goals and operational needs. The decisions they make -such as how they restructure supply chains, reconfigure partnerships, or invest in new capabilities - are crucial in altering the GPNs. Such decisions set in motion changes that resonate throughout production networks, affecting suppliers, partners, and competitors alike.  Their strategic decisions are, therefore, instrumental in shaping the extent and speed of GPN reconfigurations amidst the polycrisis. However, there remains a significant knowledge gap regarding which resilience strategies lead firms to adopt as a response to the polycrisis (Coe & Yeung, 2015) and how these strategies respond to broader governance decisions (McWilliam et al., 2020). In this study, we address this gap by integrating perspectives on GPNs and lead firm governance with empirical insights into strategic choices, derived from a survey of Danish firms in the manufacturing sector. We raise the question: which resilience strategies do lead firms follow and what are the factors determining their strategic choices?

Biography

Torben Pedersen is a professor of Global Strategy at Copenhagen Business School. His research interests are in the interface between strategy, sustainability, and international management. He has published over 100 articles and books concerning the managerial and strategic aspects of globalization. His research has appeared in prominent journals such as the Academy of Management Journal, Strategic Management Journal, Journal of Management, Journal of International Business Studies, Journal of Management Studies, and Organization Science. In addition, he has written more than 25 teaching cases published at case clearing houses. He is an elected Fellow of the Academy of International Business, Strategic Management Society, and European International Business Association. He is the founding editor of Global Strategy Journal and serves on numerous editorial boards. He is currently President-Elect of the Academy of International Business.