The resurgence of nationalism and its implications for supply chain risk management

Abstract

PurposeThis paper examines nationalism as a driver of political risk and how it can lead to supply chain disruptions for foreign multinational enterprises (MNEs).Design/methodology/approachConceptual research based on a review of the literature on nationalism and supply chain risk management.FindingsThis research unveils how economic nationalism could engender supply chain disruptions via discriminatory practices toward all foreign MNEs and how national animosity may generate additional risks for the MNEs of nations in conflict with one another. These discriminatory practices include an array of host government and grassroots actions targeting foreign MNEs. While economic nationalism and national animosity emanate from within a host country, they may stimulate geopolitical crises outside the host country and thereby affect the international supply chains of foreign MNEs.Research limitations/implicationsThis research lays the foundation for analytical and empirical researchers to integrate key elements of nationalism into their studies and recommends propositions and datasets to study these notions.Practical implicationsThis study shows the implications that nationalist drivers of supply chain disruptions have for foreign MNEs and thus can help managers to proactively mitigate such disruptions.Originality/valueThis study reveals the importance of integrating notions of national identity and national history in supply chain research, since they play a key role in the emergence of policies and events responsible for supply chain disruptions.