Strategic Flexibility for Multinational Enterprises in a Volatile Global Economy

This dissertation investigates how multinational enterprises (MNEs) can build and use strategic flexibility to manage uncertainty in today’s volatile global business environment. Using data from U.S. and foreign MNEs during the U.S.–China trade war, the first study shows that broader and denser international operations helped firms reduce tariff exposure. The second study finds that some MNEs turned disruption into opportunity by expanding into markets vacated by competitors. The third study highlights how decision-makers’ behavioral biases shape the creation and use of flexibility. These insights offer practical guidance for firms and policymakers navigating geopolitical risk and trade policy uncertainty.