Abstract
This study examines the strategic choices of multinational corporations (MNCs) operating in sanctioned markets and their implications for global marketing strategy. Using the Toyo Keizai dataset alongside data from the World Bank and UNCTAD’s World Investment Reports, we analyze 332 observations from 92 Japanese MNCs in Russia, Iran, Myanmar, and Venezuela. Our findings highlight that investment motives and expatriate presence significantly influence MNCs’ strategies. Market-seeking subsidiaries with more expatriates tend to adopt shrinking strategies, while resource-seeking subsidiaries prefer stability. These behaviors differ from non-sanctioned markets, where market-seeking subsidiaries lean toward stability. Building on real options and resource dependency theories, this paper introduces a strategic adaptation framework to analyze MNC behavior in sanctioned markets by exploring strategic responses beyond divestment, to include stability and shrinking; and illustrating how investment motives and expatriates together shape marketing strategies. Our findings provide actionable insights for global managers on balancing investment motives, expatriate involvement, and strategic flexibility to adapt effectively while maintaining a market presence under sanctions.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call