Sustainability of global and international business operations during the adversity and hardship

Ramo Palalic,Veland Ramadani,Robert D Hisrich,Leo Paul Dana

doi:10.37868/hsd.v4i1.78

Abstract

The COVID-19 pandemic has altered the way business is conducted. The widespread closure of commercial organizations presents opportunities to reset the way business activities are conducted. Regardless of the organization’s size or its status as a domestic or international firm, due diligence is required to find solutions that will allow firms to sustain their business activities in uncertain times. This study addresses this issue and attempts to identify issues that require urgent attention so that organizations can be effective and efficient in their global operations. In this context, the study proposes three imperatives for global/international businesses to sustain their operations in the long term. These imperatives include having a strong reserve fund, access to a local mutual fund, and networking to form alliances in host countries. Other implications are discussed, and we identify areas for future research.

Highlights

Since the early 19th century, business organizations have been seeking ways to expand their operations internationally
The pandemic in 2020 disrupted and slowed down these activities to the extent that some multinational enterprises (MNEs) and firms involved in international business ceased their global operations permanently, resulting in a large number of job losses
MNEs in the United States of America (USA) account for 22% of people employed; in the Netherlands, they account for 20%, while in China, they are responsible for 6.4% of urban employment (World Bank 0WB, 2020)2

Summary

Introduction

Since the early 19th century, business organizations have been seeking ways to expand their operations internationally. These efforts were intensified since the end of the Second World War, as barriers to international trade and investment have gradually reduced. The other is to act as a socially responsible corporate citizen in the host economy and employ local people This two-fold strategy is captured in the “GloCal” (think globally and act locally) mindset [1]. Going global is motivated by the MNEs’ desire to maximize profits, while acting locally requires adapting/customizing products or services to the local environment and be socially responsible in providing jobs to locals.

Golden old days for international business: sweet challenges

Discussion and conclusion

Findings

Conclusion