Mobilizing against the anti-globalization backlash:An integrated framework for Corporate Non-Market Strategy

In the aftermath of the Global Financial Crisis and, more recently, the COVID-19 pandemic, there has been a rise in scepticism on the merits of trade and globalization across several key developed countries. This poses major challenges for Multinational Enterprises (MNEs) and other trade dependent firms (TDFs). This paper develops a framework to explore corporate non-market strategies (NMS) to address this backlash, covering both Corporate Political Activity (CPA) and Corporate Social Responsibility (CSR). We firstly provide an overview of the existing research on the anti-globalization backlash and MNEs/TDFs strategy in the face of protectionism, from international economics, business strategy and international political economy. Building on this scholarship, we formulate propositions for CPA and CSR actions which are likely to be deployed by TDFs in developed economies to counter protectionism and address the criticisms of the anti-globalization movement. On this basis we propose an interdisciplinary analytical framework that can be used to study corporate strategy in times of growing anti-trade sentiments. Finally, we provide initial proposals for testing these propositions and highlight the challenges researchers may face when carrying out such research.