ABSTRACT This article demonstrates how international human resource management (IHRM) has been used by multinational enterprises (MNEs) as a strategic tool to mitigate political risks such as nationalization, boycotts, or labor activism. Based on a qualitative embedded case study of the world’s largest food company, Nestlé, this study develops a typology of three major IHRM strategies designed to deal with political risk in Asia, Africa, and Latin America between 1950 and 1980: (a) the training of local managers and indigenization, (b) the reshuffling of managers’ nationality and (c) rewards for the future career of expatriates. This article therefore contributes to the resource-based view of political risk, which has identified how MNEs can develop capabilities to secure and expand their operations in times of political unrest and deglobalisation trends.
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