Networked MNEs and the costs of conflict

We explore the influence of MNE structures on firm costs and responses to conflict, focusing on the distinct characteristics of networked MNEs, through the lens of the global factory model. Global factory structures provide several advantages to the firm facing conflict, lowering informational and asset substitution costs, increasing resilience, and facilitating responses. The primary conclusions are that while trade and FDI links influence the likelihood and costs of conflict, this effect is even stronger for the networked MNE managing complex global value chains with multiple operating modes. The analysis extends the literature on MNEs and conflict to incorporate the influence of structural characteristics of the firm. • An analysis of MNE impacts and responses within violent conflictual settings • Evaluation of impacts linked to MNE organisational structure drawing upon the concept of quasi-internalisation • Implications for strategic decision-making under conditions of violent conflict.