Global Studies Centre Seminar with Dr Mirko Benischke (Erasmus University)

Climate Risk and Geographic Diversification Decisions

Abstract

Climate change poses significant challenges for multinational enterprises (MNEs) by exposing them to varying levels of climate impacts across their subsidiary networks. Climate impacts, defined as the economic and human losses resulting from the physical effects of climate change, create ecological uncertainty, disrupting access to natural resources critical for MNE operations. Building on natural resource dependence theory (NRDT), this study investigates how MNEs adapt their subsidiary portfolios in response to these challenges. We argue that MNEs facing higher levels of climate impacts across their subsidiaries increase their geographic scope to mitigate risks and secure access to essential resources, including raw materials and ecosystem services. Furthermore, MNEs are likely to expand into countries with lower climate impacts to reduce uncertainty and ensure operational resilience.

About the speaker

Mirko Benischke is the Dean of Engagement and Executive Education and an Associate Professor of Global Strategy at the Rotterdam School of Management, Erasmus University. He holds a PhD in International Business from the University of Auckland, New Zealand. His current research focuses on the strategic decision-making of senior executives—CEOs, top management teams, and boards of directors—as well as how firms gain political access and influence and navigate increasingly complex geopolitical contexts. His research has been published in leading academic journals, including the Strategic Management Journal, Journal of Business Venturing, Journal of International Business Studies, Journal of Management, Journal of Management Studies, Journal of World Business, the Academy of Management Perspectives, Human Resource Management (US), and Strategic Organization. His work on CEOs and their role in strategic decision-making has also appeared in managerial outlets like the Harvard Business Review. He is currently an Associate Editor at the Journal of Management Studies and serves on the editorial boards of journals such as the Journal of International Business Studies, Journal of Management, Journal of World Business, Global Strategy Journal, and the Multinational Business Review.