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Not gone away: how domestic terrorism impacts multinationals in foreign markets

Martin David Owens (College of Business, Technology and Engineering, Sheffield Business School, Sheffield Hallam University, Sheffield, UK)
Elizabeth Johnson (College of Business, Technology and Engineering, Sheffield Business School, Sheffield Hallam University, Sheffield, UK)

Critical Perspectives on International Business

ISSN: 1742-2043

Article publication date: 18 March 2024

51

Abstract

Purpose

The paper aims to understand how state and non-state domestic terrorism impacts MNEs in foreign markets. Despite the burgeoning literature on terrorism within international business (IB), most research has focused on international terrorism, or terrorism generally. Consequently, there has been limited research examining how domestic or local based terrorism impacts foreign firms.

Design/methodology/approach

This is a conceptual paper.

Findings

Domestic terrorism is the most common form of terrorism in the world today and involves the state and non-state actors. Non-state domestic terrorism can be low intensity or high intensity. High intensity non-state-domestic terrorism typically involves regular and protracted political violence, along with inter-communal violence. This can expose MNEs to considerable operational, governance and legitimacy pressures.

Originality/value

The paper contributes to the gap in IB terrorism research with regards domestic or local based terrorism. Drawing on IB theory and critical terrorism research, the paper addresses the nature and impact of domestic terrorism within IB. The authors’ paper shows the operational, governance and legitimacy pressures of both state and non-state domestic terrorism for MNEs in host markets. While most IB scholars consider the threat of non-state terrorism for international firms, this study shows how domestic state terrorism benefits and constrains foreign firms.

Keywords

Citation

Owens, M.D. and Johnson, E. (2024), "Not gone away: how domestic terrorism impacts multinationals in foreign markets", Critical Perspectives on International Business, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/cpoib-09-2022-0100

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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