Globally Engaged Firms in the COVID-19 Crisis

Constantinescu, Cristina; Fernandes, Ana M.; Grover, Arti; Poupakis, Stavros; Reyes, Santiago

doi:10.1596/1813-9450-9991

Cited by 4 publications

(2 citation statements)

References 80 publications

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“…Empirical evidence confirms that, during the COVID-19 pandemic, international supply chains sheltered firms and countries from shortages, thereby contributing to their resilience (Giglioli et al, 2021). Globally engaged firms recovered faster, due to their higher capabilities and their capacity to adjust (Constantinescu et al, 2022). On the anniversary of the Russian invasion of Ukraine, the WTO reported that international supply chains also offered flexibility and adjustment channels to the shock, and that resilience came from the ability to trade (Ossa, 2023).…”

Section: Myth 3: Foreign Supply Makes Supply Chains Less Resilientmentioning

confidence: 99%

Supply chain myths in the resilience and deglobalization narrative: consequences for policy

Thakur-Weigold,

Miroudot

2023

J Int Bus Policy

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The economic disruptions experienced during the COVID-19 pandemic and Russia’s invasion of Ukraine have generated a narrative of resilience and deglobalization that brings the old world order into question. Heightened public attention on perceived supply chain failures has exerted pressure on governments to intervene in firm-level operations to assure supply of essential or strategic goods. This paper argues that the narrative is founded on false premises. In particular, three supply chain myths have emerged in public and academic discourse: (i) lean management has gone too far and exacerbated disruptions in global supply chains; (ii) efficient supply chains are less resilient; and (iii) foreign supply makes supply chains less resilient. We argue that these beliefs are not adequately supported by evidence. They can displace analysis to negatively impact policy and actually diminish resilience. Drawing upon IB and supply chain management research, we investigate the root causes of perceived market failures. Recommendations are for an evidence-based debate on current events and policies.

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Section: Myth 3: Foreign Supply Makes Supply Chains Less Resilientmentioning

confidence: 99%

Supply chain myths in the resilience and deglobalization narrative: consequences for policy

Thakur-Weigold,

Miroudot

2023

J Int Bus Policy

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“…Constantinescu et al (2022) use a different perspective to assess the effect of firm-level international trade. Analysing firm-level data from 45 countries, they find that 'globally engaged firms' (firms directly involved with international markets) are characterised by a faster recovery.…”

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confidence: 99%

Firm‐level characteristics and the impact of COVID‐19: Examining the effects of foreign ownership and international trade

Jordaan

2023

World Economy

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Using a large multi‐country firm‐level data set from the World Bank Enterprise Survey, we examine whether multinational corporations (MNCs) differ from domestic firms in the prevalence and size of the impact of COVID‐19 on sales. Our findings reveal significant differences between MNCs and domestic firms, especially when accounting for the interplay between foreign ownership and international trade. Exporting MNCs are significantly less likely to experience a negative sales impact; this finding is robust to controlling for firm characteristics including size, age and productivity and the use of a propensity score reweighting approach based on the likelihood that a firm was foreign owned prior to the onset of the pandemic. Regarding the impact of the pandemic on the level of sales decrease, trading MNCs experience a significantly smaller negative impact. However, MNCs with joint high levels of imports and exports sustain a larger negative effect. MNCs operating in countries and sectors characterised by a high degree of participation in international production networks are less affected by the pandemic. When controlling for the interaction between MNCs and international trade, we also find a direct positive effect of foreign ownership on the size of sales decrease, representing a liability of foreignness effect.

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Global value chains and firm survivability during the COVID-19 pandemic: digitalization as the moderator?

Gopalan,

Miroudot,

Reddy

2023

Applied Economics Letters

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Globally Engaged Firms in the COVID-19 Crisis

Cited by 4 publications

References 80 publications

Supply chain myths in the resilience and deglobalization narrative: consequences for policy

Supply chain myths in the resilience and deglobalization narrative: consequences for policy

Firm‐level characteristics and the impact of COVID‐19: Examining the effects of foreign ownership and international trade

Global value chains and firm survivability during the COVID-19 pandemic: digitalization as the moderator?

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