Abstract
External shocks create various risks for enterprises. Multinational enterprises (MNEs) work to develop resilience and improve their global risk management capability. The COVID-19 pandemic has compelled MNEs to improve their global value chain (GVC) capability to enhance their global risk management and operational performance, which could eventually impact their overall performance. Developing GVC capability is a challenge for MNEs. This study aims to examine the influence of global risk management capability on MNEs’ GVC capability to become more resilient to withstand such crises and further enhance their performance. Building on the resource-based view (RBV), dynamic capability view (DCV), and the existing literature, a conceptual research model was prepared. The model was then validated using the PLS-SEM technique to analyze the responses of the 323 managers at different MNEs. The study found a significant positive impact of global risk management capability on GVC capability, which eventually impacted MNE performance.
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