Global Value Chains, the effects and responses of Multinational Enterprises in a crisis environment : A case study on the effects of the COVID-19 crisis

Sammanfattning: ABSTRACTDate: Seminar Date: 2 June 2020, Submission Date: 7 June 2020Level: Bachelor thesis in Business Administration, 15 crInstitution: School of Business, Society and Engineering, Mälardalen UniversityAuthors: Gabriel Arteaga Fakhri Qusay Shehab Christine Katusabe Mukidi(96/03/31) (99/01/05) (97/05/15)Title: Global Value Chains, the effects and responses of Multinational Enterprises in a crisis environment: A case study on the effects of the COVID-19 crisisTutor: Edward GillmoreKeywords: Global Value Chain, Contingency, Resource-based Management, Global Crisis, Multinational EnterprisesResearch questions:RQ 1: How does a global crisis affect the parts of multinational enterprises’ global value chain?RQ 2: How do multinational enterprises respond to a global crisis with their functions and actions?Purpose: This study seeks to gain in-depth understanding of how a global crisis can affect an MNE’s production and what response an MNE can use to mitigate the consequences of a global crisis.Method: The method consisted of an abductive approach with the combination of secondary data and semi-structured qualitative interviews with varied top- and middle-level managers within the chosen MNE, to help answer the research questions of the thesis.Conclusion: The global crisis disrupted parts of the MNE’s GVCs and affected demand, business relationships and caused production facilities to shut down. Since the GVCs are being impacted, the COVID-19 crisis has also impacted the way in which an MNE operates. Both MNEs showed the importance of flexibility and adapted their strategies and operations as the crisis progressed.