Unveiling de-globalization and its management strategies: A case study of the German automotive industry

Sidney Michael Pillich

Journal of International Management, 2025, vol. 31, issue 4

Abstract: This case study elucidates the understanding of so far conceptual knowledge on de-globalization and examines how multinational enterprises' management addresses this phenomenon. By taking a particular industry and geographic perspective, the case study unveils the respective underlying de-globalization drivers and the management strategies adopted by the German automotive industry. Within this industry, the primary de-globalization driver is predominantly shaped by a geopolitical force unfolding its negative effects, especially due to the global automotive value chain's opaqueness and fragility. De-globalization pressures are navigated through a de-risking approach that strategically balances diversification to enhance flexibility, while encapsulating independent regional ecosystems. In contrast to prevailing expectations, the de-globalization phenomenon, characterized as an inverse form of globalization, does not inherently lead to multinational firms' de-internationalization; rather, it surprisingly presents opportunities for heightened firm internationalization. This renders the terminology of de-globalization currently applied in the literature inherently ambiguous and inconclusive. Consequently, beyond the drivers and management strategies of de-globalization, this study refines terminological clarity, elucidating the puzzling disparity between the prevailing de-globalization narrative and absence of multinational enterprises' discernible de-internationalization responses, proposing that the phenomenon is better labeled as re-globalization.

Keywords: De-globalization; De-internationalization; German automotive industry; Strategic management; Case study (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:intman:v:31:y:2025:i:4:s1075425325000316

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DOI: 10.1016/j.intman.2025.101253

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