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This paper examines the influence of geopolitical tensions—operationalized as political divergence between governments—on firms’ foreign supply bases and the resulting effects on supply base complexity and sub-tier supplier sharing.

The authors conduct panel data regression analyses over the period 2003–2019 to investigate whether political divergence affects foreign supply bases for 2,858 US firms sourcing from 99 countries and to examine how political divergence exposure impacts the supply network structures of 853 US firms.

Firms reduce their supply bases in countries exposed to heightened geopolitical tensions. These supply chain adjustments are associated with increased supply base complexity and greater sub-tier supplier sharing.

This study highlights the importance of state relations in global supply chain reconfiguration. Political divergence between governments provides a dual-view of political risk (i.e. buyer–supplier countries), which can help firms anticipate geopolitical disruptions. While reducing supply bases in foreign countries facing heightened geopolitical tensions is intended to mitigate disruptions, these supply base adjustments are linked to increased supply base complexity and sub-tier supplier sharing, thereby exposing firms to other types of supply disruptions. Additionally, this research contributes to understanding the effects of geopolitical tensions on supply base complexity through the lenses of transaction cost economics and resource dependence theory.

This paper examines nationalism as a driver of political risk and how it can lead to supply chain disruptions for foreign multinational enterprises (MNEs).

Conceptual research based on a review of the literature on nationalism and supply chain risk management.

This research unveils how economic nationalism could engender supply chain disruptions via discriminatory practices toward all foreign MNEs and how national animosity may generate additional risks for the MNEs of nations in conflict with one another. These discriminatory practices include an array of host government and grassroots actions targeting foreign MNEs. While economic nationalism and national animosity emanate from within a host country, they may stimulate geopolitical crises outside the host country and thereby affect the international supply chains of foreign MNEs.

This research lays the foundation for analytical and empirical researchers to integrate key elements of nationalism into their studies and recommends propositions and datasets to study these notions.

This study shows the implications that nationalist drivers of supply chain disruptions have for foreign MNEs and thus can help managers to proactively mitigate such disruptions.

This study reveals the importance of integrating notions of national identity and national history in supply chain research, since they play a key role in the emergence of policies and events responsible for supply chain disruptions.