International Business Seminar Series: A Legitimacy-Based View on Western Firms’ Response to the Ukraine War
In the current session of the International Business Seminar Series, Prof. Georg Wernicke explores how firms react when a foreign country becomes politically delegitimized. Using Russia’s invasion of Ukraine as a case study, he examines how legitimacy threats drive firms' decisions to exit and whether they redirect business elsewhere.
Prof. Wernicke’s study examines how companies respond to rising political risks when a country is delegitimized. It finds that strong economic ties increase the likelihood of withdrawal, especially when public opposition grows in the company’s home country.
Two factors further reinforce this effect: heightened public attention intensifies pressure on businesses, and if the host country perceives the home country as an adversary, legitimacy risks increase. Analyzing Russia’s 2022 invasion of Ukraine, the study confirms these findings—many Western companies withdrew from Russia and shifted their operations to neighboring post-Soviet countries.
Date
Start date: 10 April 2025, 12.30 pm
Location
ZHAW School of Management and Law, Gebäude SW, Raum 221, und online
Organizer
ZHAW International Management Institute
Theaterstrasse 17
8401
Winterthur
+41 58 934 46 26
info.imi@zhaw.ch
ZHAW International Management Institute