Quotation Klein, Florian, Puck, Jonas, Weiss, Martin. 2019. Macroenvironmental Dynamism and Firm Risk Management - An Exploratory Investigation. In: International Business in a VUCA World: The Changing Role of States and Firms, Hrsg. Tulder, Rob Van, Verbeke, Alain, Jankowska, Barbara, 173-197. Bingley: Emerald Group Publishing.




The macroenvironment constitutes a widely acknowledged source of firms’ risk in international business. A substantial body of research on macroenvironmental risks encapsulates a variety of measurement approaches, antecedents, and managerial consequences. However, a review of established macroenvironmental risk measures reveals that these measures strongly focus on the quality of the macroenvironment, assuming a rather static perspective and mainly excluding dynamic aspects. Building on prior research on macroenvironmental risk as well as on environmental dynamism, we argue that macroenvironmental dynamism – i.e. the frequency, intensity, and predictability of macroenvironmental variation – is a pivotal source of risk in international business, which so far only received limited attention. Moreover, we suggest that macroenvironmental dynamism influences firms’ risk management activities, a measure we use to empirically investigate firm implications of macroenvironmental dynamism. We explore this effect using primary survey data on risk management activities from 158 foreign subsidiaries in six emerging countries and secondary data on the macroeconomic context in these countries. We find evidence that macroenvironmental dynamism, if compared to macroenvironmental quality, exerts a strong influence on firms’ risk management activities. Our findings enhance the understanding of the dynamic nature of macroenvironmental risk in international business as well as provide a concept to more comprehensively measure macroenvironmental dynamism that future research can build upon.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Chapter in edited volume
Language English
Title Macroenvironmental Dynamism and Firm Risk Management - An Exploratory Investigation
Title of whole publication International Business in a VUCA World: The Changing Role of States and Firms
Editor Tulder, Rob Van, Verbeke, Alain, Jankowska, Barbara
Page from 173
Page to 197
Location Bingley
Publisher Emerald Group Publishing
Year 2019
Reviewed? Y
URL https://doi.org/10.1108/S1745-886220190000014011
ISBN 978-1-83867-256-0
Open Access N


Klein, Florian (Former researcher)
Puck, Jonas (Details)
Weiss, Martin (Vlerick Business School, Belgium)
Institute for International Business (Puck) (Details)
Institute for International Business IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5300 Economics (Details)
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