The effect of geopolitical tensions on international research collaborations and its implications for global operations management

Abstract

Firms desiring to remain competitive must develop or acquire knowledge resources. Developing knowledge with foreign partners by forming international research collaborations (IRCs) offer many opportunities to access a variety of knowledge but it exposes firms to intercountry relations and conflicts. Therefore, the ability to manage knowledge across borders has been a critical element of a firm's global operations strategy. The purpose of this study is to investigate how political divergence between states affect IRCs and examine the operations and supply chain management (OSCM) implications of this phenomenon. We use secondary data covering 11,160 firms in 55 countries over the period 2010–2019 to test whether political divergence reduces the occurrence of IRCs. We find that political divergence decreases IRCs, and this effect is strengthened for firms operating in high-tech industries. Moreover, when conflict between two countries increases, IRCs are further reduced only for firms in politically aligned countries. Our study contributes to the global operations literature by revealing an overlooked intercountry factor that can affect a firm's access to foreign knowledge. Geopolitical tensions influence IRCs even for countries that are culturally or geographically close. Furthermore, we highlight for OSCM practitioners how political divergence can be a source of knowledge flow disruptions and suggest strategies to mitigate this risk. Finally, we present a research agenda underscoring how geopolitical tensions might be explored in future OSCM research with respect to building, managing, and benefiting from IRCs.