Mapping vulnerability: how emerging markets respond to multinationals

摘要

A firm's past - its history, strategic actions, organization processes, inter-firm dependencies and business complexity - may result in a vulnerable situation impacting its long-term growth, sustainability and survival. Business practices such as 'Just-in-time', lean supply chains, global sourcing and outsourcing create dependencies among firms. Any unintended or untoward event can disrupt this dependency and expose firms to negative consequences. Vulnerability makes firm susceptible to large-scale discontinuities. This may be due to changes in the economic, technological, social and policy logics of the firm. Vulnerability is usually inherent and may remain invisible until the organization faces stress or adverse conditions. One such possible scenario is large-scale investments by multinationals in emerging markets, which upsets entrenched local incumbents. We believe that although vulnerability exists all the time in most firms, it becomes "strategic" when the very existence and survival of a firm are at stake.