Not gone away: how domestic terrorism impacts multinationals in foreign markets.

Purpose (limit 100 words) The paper aims to understand how state and non-state domestic terrorism impacts MNEs in foreign markets. Despite the burgeoning literature on terrorism within IB, most research has focused on international terrorism, or terrorism generally. Consequently, there has been limited research examining how domestic or local based terrorism impacts foreign firms. Design/methodology/approach (limit 100 words) This is a conceptual paper. Findings (limit 100 words) Domestic terrorism is the most common form of terrorism in the world today, and involves the state and non-state actors. Non-state domestic terrorism can be low intensity or high intensity. High intensity non-state-domestic terrorism typically involves regular and protracted political violence, along with inter-communal violence. This can expose MNEs to considerable operational, governance and legitimacy pressures. Originality/value (limit 100 words) The paper contributes to the gap in IB terrorism research with regards domestic or local based terrorism. Drawing on IB theory and critical terrorism research, the paper addresses the nature and impact of domestic terrorism within IB. Our paper shows the operational, governance and legitimacy pressures of both state and non-state domestic terrorism for MNEs in host markets. While most IB scholars consider the threat of non-state terrorism for international firms, our study shows how domestic state terrorism benefits and constrains foreign firms.