Corporations grapple with surging nationalist sentiment across the world

The resurgence of nationalism across the globe is not just a political issue. It’s emerging as a powerful force that multinational companies cannot afford to ignore.

Recent events such as Brexit, Russia’s war in Ukraine and the United States election can have far-reaching implications for businesses.

These events can influence investor confidence and alter government restrictions on foreign companies.

Managers are increasingly faced with a key question: should they push forward with new initiatives targeting international markets or hang on and wait for acceptance from those local communities?

There is ongoing debate over whether going global can directly help a company’s ability to innovate. Entering international markets can allow a business to gain new knowledge through connecting global production networks, accessing global talent and creating diversified global teams.

But what happens when a company’s plans to go global clash with nationalist sentiment – either at home or abroad?

Our research looked at how two factors – a country’s focus on technological progress, and its nationalist sentiment – can affect companies’ decisions when it comes to expanding into the global market.

These factors are particularly important when it comes to the spread of new technology that might be perceived to go against national interests.

While it may be obvious that companies need to take the political temperature of a new market, our...

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