Abstract Research Summary While multinational corporations (MNCs) can profoundly shape global development trajectories, global strategy research has largely treated development as peripheral to core strategic concerns. This Perspective paper examines the contested relationship between global strategy and development, arguing that MNCs are neither purely developmental agents nor simply extractive actors, but embedded participants whose strategic choices inevitably reshape host economies and societies. By reconceptualizing development from an “externality” to an “input into strategy,” we propose a framework that distinguishes five orientations MNCs adopt toward development. Beyond ethical issues, since MNCs rely on development outcomes—such as skilled labor, stable institutions, and functioning markets—while simultaneously reshaping these very conditions, we argue that strategy and development are mutually constitutive processes that require integrated scholarly attention. Managerial Summary Multinational executives face mounting pressure to address development challenges in host countries, yet many struggle to determine whether—and how—development concerns should shape global strategy. This paper clarifies why development matters for competitive success and offers a framework for strategic action. We argue that development and global strategy are fundamentally intertwined. Multinationals rely on the conditions that constitute development but also shape these conditions through their actions. Accordingly, the question is how to engage with development strategically. We identify five approaches MNCs take: (1) embed development into their core competitive advantage (transformative); (2) treat development as a peripheral consideration through CSR (symbolist); (3) engage primarily for legitimacy and reputation (instrumentalist); (4) generate positive spillovers without intention (accidental); and (5) prioritize efficiency with minimal local consideration (disengaged).
Larsen et al. (Wed,) studied this question.