The Multipolar Firm: Reframing Management Strategy Under Geoeconomic Fragmentation
DOI:
10.47353/jmd.v1i1.377Published:
2026-04-11Downloads
Abstract
The intensifying fragmentation of the global economy—driven by geopolitical tensions, regionalization, technological decoupling, and shifting trade regimes—has fundamentally altered the strategic landscape for multinational firms. Traditional models of globalization, premised on efficiency, integration, and borderless markets, are increasingly inadequate in a world characterized by competing economic blocs and divergent regulatory systems. This study introduces the concept of the multipolar firm as a strategic response to geoeconomic fragmentation, emphasizing adaptability, modularity, and institutional alignment across diverse geopolitical contexts. Using a descriptive qualitative approach grounded in an integrative and conceptual literature synthesis, this research identifies three core strategic dimensions underpinning the multipolar firm: geopolitical adaptability, network modularity, and institutional arbitrage. These dimensions enable firms to operate effectively across fragmented markets while mitigating risks associated with regulatory divergence, supply chain disruption, and political uncertainty. The study proposes a multi-layered strategic framework integrating global coordination with regional autonomy, supported by dynamic capabilities and digital infrastructures. It further highlights critical tensions between efficiency and resilience, standardization and localization, and integration and decoupling. This research contributes to strategic management literature by reframing the multinational enterprise in the context of geoeconomic fragmentation and offering a novel conceptualization of firm strategy under multipolar conditions. The findings provide actionable insights for managers and policymakers navigating an increasingly complex and contested global economic order.
Keywords:
Multipolar firm geoeconomic fragmentation global strategy multinational enterprisesReferences
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