How Disaster Experience Shapes Global Expansion

Multinational corporations often avoid entering or expanding into countries with high-impact, unpredictable disasters. Yet this study shows a critical exception: firms with firsthand experience managing major disasters are more willing to expand operations in risk-prone environments, turning adversity into opportunity through expertise.​

Organizational Learning Powers Resilience

The key driver is firm-level learning from rare but impactful shocks—think natural disasters or crises. Companies that have navigated such risks in the past develop robust decision-making processes and stronger capabilities, making them better equipped to pursue expansion even in challenging markets.​

Action Steps for Leaders: Build Adaptive Capacity

For executives considering international growth, this research highlights the need to foster organizational resilience through experience, training, and knowledge sharing. Facing adversity head-on prepares firms not just to survive, but to thrive when unexpected disruptions hit new markets.