Conform or challenge? Adjustment strategies of sanction‐torn companies
Bibliographic Data
| ID | 21543737 |
|---|---|
| Authors | Patrick Maximilian Weber (0000-0002-4075-9535, Department of Politics and Public Administration University of Konstanz Konstanz Germany, corresponding author), Beata Stępień (0000-0002-0488-1146, Department of International Management Poznan University of Economics Poznan Poland) |
| Year | 2020 |
| Volume | 43 |
| Issue | 11 |
| Pages | 3006-3024 |
| Publication date | 2020-11-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | World Economy (JOURNAL) |
| Journal identifiers | ISSN: 0378-5920 • E-ISSN: 1467-9701 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/twec.12985 |
| OpenAlex | W3034874093 |
| Language | EN |
| Citations received | 9 |
| References cited | 35 |
The literature on sanctions often neglects the role of domestic firms in sender states, although sanctions only have a real economic effect when senders’ firms reduce their activities on the target's market. In contrast, sanctions avoidance and increasing investments in the target country (the observed behaviour of many companies facing the EU sanctions against Russia imposed in 2014) mitigate the impact of these restrictive measures. While sanctions increase the political risk for companies, they also offer economic opportunities—and previous studies could not settle the debate on which factor prevails. By evaluating responses from British, French, German, Italian and Polish enterprises to an online survey distributed in 2017, we analyse at the firm level how sanction‐torn companies adjust to new political orders and what drives their strategic decisions. We find evidence that resource dependency induces strategies that challenge sanction policies: in particular, non‐fungible assets in the target country incentivise companies to further increase their engagement. These defiance strategies diminish the real economic effect of sanctions and generate a new economic equilibrium, which has negative long‐term implications on the choice set of policymakers to further pursue the imposition of sanctions and which even outlasts the lifting of these restrictive measures
Business · Communication source · Economic sanctions · Economics · German · International economics · Market economy · Political science · Politics · Public economics · Sanctions · Economic Sanctions and International Relations · Law
The Currency Constraint
The impact of political relations on international trade
Do firms hedge against political tensions? Evidence from Chinese food importers of Norwegian salmon
Micro-level incentives and the mechanism of import substitution in Russian public procurement
Who cares about sanctions? Observations from annual reports of European firms
Market adjustments to import sanctions
A conceptual framework for firms’ response strategies against sanctions
Market Presence and Sanction Responses
The Enforcement of U.S. Economic Sanctions and Global De-risking Behavior
Busted Sanctions
Dynamic capabilities
Resource Dependence Theory
Strategic Responses to Institutional Processes
Firm Resources and Sustained Competitive Advantage
Institutions, Institutional Change and Economic Performance
Rethinking Political Risk
A Meta-Analysis of Response Rates in Web- or Internet-Based Surveys
Imposing Sanctions
The effect of foreign direct investment on the use and success of US sanctions
Survey response rate levels and trends in organizational research
The Effect of Sanctions on U.S. Foreign Direct Investment
On the Effects of International Economic Sanctions, With Examples from the Case of Rhodesia
Investment, Opportunity, and Risk
When Are Sanctions Effective? A Bargaining and Enforcement Framework
Hitting Two Birds with One Stone
Designing foreign policy
Market Networks and Corporate Behavior
| Citations per year | 1.8 |
|---|---|
| Citation span | 2021 - 2026 (6) |
| Highly cited | No |