Geo-political tensions and firms’ relocation effects.

In today’s world, increasing uncertainty and rising geopolitical tensions are making it more difficult for firms to operate across borders. As a result, a growing number of companies are relocating activities to reduce risk while increasing control and resilience. However, specific studies examining the effects of such relocations are still lacking. My research aims to address this gap by focusing on the outcomes of international relocations—not only for the firms that relocate (in terms of capabilities, organizational structure, and performance), but also for their local business partners. The goal is to understand not just why or how firms relocate, but what happens afterward. To investigate these questions, I am using original survey data from Swedish firms. The first part of the survey, already completed, captures their propensity of firms to relocate and where to. The second part, currently underway, targets firms that have already relocated—whether to a new foreign country, their home region, or back to their home country—and examines the effects of these relocations. My work, conducted in collaboration with international scholars during my visiting period, will generate findings that will be included in three journal publications. This research will contribute to the literature on international strategy and supply chain management, while also offering valuable insights to managers and policymakers.