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.
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.
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.