Year: 2026
Type: article
Abstract: This article argues that the shift from a relatively stable unipolar system to a fragmented multipolar world undermines efficiency-driven global strategies of multinational enterprises (MNEs). Highly optimized value chains, while cost-effective, are increasingly fragile under systemic geopolitical disruptions. The paper reframes inefficiency, such as redundancy, geographic dispersion, and operational flexibility, as a strategic asset for resilience. Building on real options logic, it proposes the “Three Dimensions of Strategic Inefficiency for Resilience” as a framework for enhancing adaptability. The study concludes that in volatile environments, resilience is achieved not despite inefficiency, but through its deliberate design.
Source: AIB Insights
DOI: 10.46697/001c.166839
Authors: Seyedhossein Khabiri, Hidehiro (Hide) Ito
Institution: Florida International University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7204088520