Lunch Seminar in presence

Building BL26 – Room 0.19 (ground floor)
Department of Management, Economics and Industrial Engineering
Via R. Lambruschini 4/B, 20156 Milano

Thomas Lindner
Copenhagen Business School, Denmark

Abstract:

Multinational corporations are less likely to invest in host countries with populist governments. However, this effect is not uniform and some MNCs continue to invest in such countries. The extent of challenges faced by MNCs depends on whether firms are perceived as part of the favored ingroup or targeted as members of the outgroup. We examine how regime characteristics shape when a populist government targets foreign firms as outsiders. Departing from the traditional right-left classification that conflates key differences among political regimes, we focus on two aspects that are central to populist governments and to how populist governments see foreign firms: business orientation and stance on immigration. Pro-business regimes are less likely to treat MNCs as members of the outgroup while those with a strong anti-immigration stance are more likely to do so. Using a dataset of over 23,000 FDI across 61 host countries, we find that the adverse effect of populism on FDI is diminished in pro-business regimes and amplified in regimes with strong anti-immigration stances. Regime alignment between home and host countries reduces the negative impact of populist governments on FDI. Our research highlights how regime characteristics play a crucial role in shaping foreign investment decisions under populism.

Thomas Lindner is a professor of international business with affiliations at Copenhagen Business School and University of Innsbruck. His research covers core international business topics, such as internationalization processes, foreign direct investment, and institutional theory. Particularly, Thomas is interested in the role geopolitics plays for international business, and he investigates how artificial intelligence changes how multinational companies operate. Thomas has contributed work to some of the leading journals in business and management, including the Academy of Management Journal, Journal of Finance, Journal of International Business Studies, Journal of Management Studies, and Management Science. He is also the author of a forthcoming textbook on international business and the challenges of the 21st century. Outside work, Thomas enjoys skiing, beach volleyball, traveling, and reading science fiction.

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