International Supply Chain Resilience under Geopolitical Threats

In the wake of ongoing military conflicts in the world, an increasing number of nations are prioritizing security over economic prosperity in international supply chains.

Photo by Barrett Ward on Unsplash

About the project

Conflicts and political pressure can undermine the ability to maintain supply flows to, from, and within countries. The total defense capacities of nations depend on access to resources that enable the continuation of business operations on a broad scale. During geopolitical crises, private firms play important roles in ensuring the availability of critical resources. Companies are therefore facing growing pressure to develop strategies, collaborations, and procedures that strengthen the resilience of their supply chains. Building supply chain resilience may involve redesigning supply chains, developing routines to address sudden geopolitical shifts, and exploring new sourcing options.

While increasing attention, from a total defense perspective, is directed toward the ability of domestic industries to deliver products and services under challenging conditions, we still lack knowledge about how geopolitical tensions spill over into international supply chain strategies and shape firm-level capabilities to adapt to shifting requirements.

Firms, especially those from smaller nations such as Sweden, will inevitably remain exposed to international dependencies. However, firms can minimize the risks that such dependencies lead to severe disruptions. This can be achieved through supply chain strategies that take into consideration the geopolitical risks linked to international dependencies. In this study, we investigate how supply chain strategies change when the focus shifts from cost optimization toward greater consideration of security, preparedness, and resilience.

Research team