IDEAS home Printed from https://ideas.repec.org/a/eee/worbus/v59y2024i6s1090951624000634.html
   My bibliography  Save this article

‘Caught in the middle’: Effects on and reactions of Vietnamese timber exporters in the context of US-China economic sanctions

Author

Listed:
  • Dang, Quyen Thao
  • Rammal, Hussain Gulzar
  • Ghauri, Pervez N.
  • Jasovska, Pavlina
  • Velasquez, Santiago

Abstract

The impact of primary sanctions on firms has been well-documented in the literature. However, the impact of secondary sanctions on businesses in third countries and their strategic responses has been under-researched. This study explores this issue by investigating Vietnamese timber exporters in the context of US-China economic sanctions. Taking a case study approach, interviews were conducted with key government and industry officials as well as firms in Vietnam. Using the key concepts from the realism school of thought and the stakeholder theory as the analytical lenses, we found that third countries’ businesses encountered both positive and negative impacts of the sanctions and employed four strategies, namely aligning, aspiring, influencing, and insulating to respond to the challenges and opportunities these sanctions presented. This study contributes to identifying the notion of temporality and explaining how and when third-country firms intertwine both reactive and anticipatory strategies.

Suggested Citation

  • Dang, Quyen Thao & Rammal, Hussain Gulzar & Ghauri, Pervez N. & Jasovska, Pavlina & Velasquez, Santiago, 2024. "‘Caught in the middle’: Effects on and reactions of Vietnamese timber exporters in the context of US-China economic sanctions," Journal of World Business, Elsevier, vol. 59(6).
    • Handle: RePEc:eee:worbus:v:59:y:2024:i:6:s1090951624000634
    DOI: 10.1016/j.jwb.2024.101583
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1090951624000634
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jwb.2024.101583?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nathaniel Boso & Joseph Amankwah-Amoah & Dominic Essuman & Oluwaseun E. Olabode & Patience Bruce & Magnus Hultman & James Kofi Kutsoati & Ogechi Adeola, 2023. "Configuring political relationships to navigate host-country institutional complexity: Insights from Anglophone sub-Saharan Africa," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(6), pages 1055-1089, August.
    2. Dursun Peksen, 2019. "When Do Imposed Economic Sanctions Work? A Critical Review of the Sanctions Effectiveness Literature," Defence and Peace Economics, Taylor & Francis Journals, vol. 30(6), pages 635-647, September.
    3. Baker, Arnold & Gross, Felicia & Tower, Edward, 1997. "Super 301 trade sanctions: An empirical investigation of the wood products case," The North American Journal of Economics and Finance, Elsevier, vol. 8(1), pages 39-55.
    4. Dang, Quyen Thao & Jasovska, Pavlina & Rammal, Hussain Gulzar, 2020. "International business-government relations: The risk management strategies of MNEs in emerging economies," Journal of World Business, Elsevier, vol. 55(1).
    5. Rammal, Hussain G. & Rose, Elizabeth L. & Ghauri, Pervez N. & Ørberg Jensen, Peter D. & Kipping, Matthias & Petersen, Bent & Scerri, Moira, 2022. "Economic nationalism and internationalization of services: Review and research agenda," Journal of World Business, Elsevier, vol. 57(3).
    6. Anton Filipenko & Olena Bazhenova & Roman Stakanov, 2020. "Economic Sanctions: Theory, Policy, Mechanisms," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 6(2).
    7. Ghauri, Pervez & Strange, Roger & Cooke, Fang Lee, 2021. "Research on international business: The new realities," International Business Review, Elsevier, vol. 30(2).
    8. Barry, Colin M. & Kleinberg, Katja B., 2015. "Profiting from Sanctions: Economic Coercion and US Foreign Direct Investment in Third-Party States," International Organization, Cambridge University Press, vol. 69(4), pages 881-912, October.
    9. Michael Hitt & R. Michael Holmes & Jean-Luc Arregle, 2021. "The (COVID-19) Pandemic and the New World (Dis)Order," Post-Print hal-03188240, HAL.
    10. Ahn, Daniel P. & Ludema, Rodney D., 2020. "The sword and the shield: The economics of targeted sanctions," European Economic Review, Elsevier, vol. 130(C).
    11. Nguyen, Hanh Tien & Ariyawardana, Anoma & Ratnasiri, Shyama, 2020. "Forest plantation owners' willingness to pay for hybrid nursery stock: The case of Acacia hybrids in Central Vietnam," Forest Policy and Economics, Elsevier, vol. 116(C).
    12. Pan, Wenqi & Chang, Wei-Yew & Wu, Ting & Zhang, Han & Ning, Zhuo & Yang, Hongqiang, 2021. "Impacts of the China-US trade restrictions on the global forest sector: A bilateral trade flow analysis," Forest Policy and Economics, Elsevier, vol. 123(C).
    13. T. Clifton Morgan & Constantinos Syropoulos & Yoto V. Yotov, 2023. "Economic Sanctions: Evolution, Consequences, and Challenges," Journal of Economic Perspectives, American Economic Association, vol. 37(1), pages 3-30, Winter.
    14. Meyer, Klaus E. & Thein, Htwe Htwe, 2014. "Business under adverse home country institutions: The case of international sanctions against Myanmar," Journal of World Business, Elsevier, vol. 49(1), pages 156-171.
    15. Benjamin Liebman & Kasaundra Tomlin, 2015. "World Trade Organization sanctions, implementation, and retaliation," Empirical Economics, Springer, vol. 48(2), pages 715-745, March.
    16. He, Canfei & Li, Jing & Wang, Wenyu & Zhang, Peng, 2024. "Regional resilience during a trade war: The role of global connections and local networks," Journal of World Business, Elsevier, vol. 59(5).
    17. Hitt, Michael A. & Holmes, R. Michael & Arregle, Jean-Luc, 2021. "The (COVID-19) pandemic and the new world (dis)order," Journal of World Business, Elsevier, vol. 56(4).
    18. Meyer, Klaus E. & Fang, Tony & Panibratov, Andrei Y. & Peng, Mike W. & Gaur, Ajai, 2023. "International business under sanctions," Journal of World Business, Elsevier, vol. 58(2).
    19. Cavusgil, S. Tamer & Deligonul, Seyda & Ghauri, Pervez N. & Bamiatzi, Vassiliki & Park, Byung Il & Mellahi, Kamel, 2020. "Risk in international business and its mitigation," Journal of World Business, Elsevier, vol. 55(2).
    20. Ajai Gaur & Alexander Settles & Juha Väätänen, 2023. "Do Economic Sanctions Work? Evidence from the Russia‐Ukraine Conflict," Journal of Management Studies, Wiley Blackwell, vol. 60(6), pages 1391-1414, September.
    21. Doh, Jonathan P. & Dahan, Nicolas M. & Casario, Michelle, 2022. "MNEs and the practice of international business diplomacy," International Business Review, Elsevier, vol. 31(1).
    22. Jiatao Li & Ari Van Assche & Lee Li & Gongming Qian, 2022. "Foreign direct investment along the Belt and Road: A political economy perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(5), pages 902-919, July.
    23. Yadong Luo & Ari Assche, 2023. "The rise of techno-geopolitical uncertainty: Implications of the United States CHIPS and Science Act," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(8), pages 1423-1440, October.
    24. Sjoerd Beugelsdijk & Yadong Luo, 2024. "The politicized nature of international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(3), pages 281-284, April.
    25. Ciravegna, Luciano & Ahlstrom, David & Michailova, Snejina & Oh, Chang Hoon & Gaur, Ajai, 2023. "Exogenous shocks and MNEs: Learning from pandemics, conflicts, and other major disruptions," Journal of World Business, Elsevier, vol. 58(6).
    26. Peter J Buckley, 2020. "China’s belt and road initiative: Changing the rules of globalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(2), pages 279-281, March.
    27. Hufbauer, Gary Clyde & Jung, Euijin, 2020. "What's new in economic sanctions?," European Economic Review, Elsevier, vol. 130(C).
    28. Darren J. Lim & Victor A. Ferguson, 2022. "Informal economic sanctions: the political economy of Chinese coercion during the THAAD dispute," Review of International Political Economy, Taylor & Francis Journals, vol. 29(5), pages 1525-1548, September.
    29. Yadong Luo, 2022. "Illusions of techno-nationalism," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 550-567, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. He, Canfei & Li, Jing & Wang, Wenyu & Zhang, Peng, 2024. "Regional resilience during a trade war: The role of global connections and local networks," Journal of World Business, Elsevier, vol. 59(5).
    2. Barnard, Helena & Luiz, John M., 2024. "The South African economic elite and ownership changes in foreign multinationals’ assets during and after Apartheid-era sanctions," Journal of World Business, Elsevier, vol. 59(5).
    3. Thein, Htwe Htwe & Grosman, Anna & Sosnovskikh, Sergey & Klarin, Anton, 2024. "Should we stay or should we exit? Dilemmas faced by multinationals under sanctioned regimes," Journal of World Business, Elsevier, vol. 59(6).
    4. Jerg Gutmann & Matthias Neuenkirch & Florian Neumeier, 2024. "Political Economy of International Sanctions," Research Papers in Economics 2024-07, University of Trier, Department of Economics.
    5. Meyer, Klaus E. & Fang, Tony & Panibratov, Andrei Y. & Peng, Mike W. & Gaur, Ajai, 2023. "International business under sanctions," Journal of World Business, Elsevier, vol. 58(2).
    6. Jiang, Jiangang & Zhang, Jianhong, 2024. "National security review and ownership participation in cross-border acquisitions," International Business Review, Elsevier, vol. 33(6).
    7. Delios, Andrew & Li, Jiatao & Schotter, Andreas P.J. & Vrontis, Demetris, 2024. "Challenging the orthodoxy in international business research: Directions for “new” research areas," Journal of World Business, Elsevier, vol. 59(4).
    8. Puhr, Harald & Müllner, Jakob, 2022. "Foreign to all but fluent in many: The effect of multinationality on shock resilience," Journal of World Business, Elsevier, vol. 57(6).
    9. Gammeltoft, Peter & Panibratov, Andrei, 2024. "Emerging market multinationals and the politics of internationalization," International Business Review, Elsevier, vol. 33(3).
    10. Chun, Wootae & Wang, Zhan & Gon Kim, Hyun, 2024. "Do environmental regulations drive MNEs’ equity ownership? Considering the impact of exogenous shocks on MNEs’ cross-border acquisitions," Journal of Business Research, Elsevier, vol. 174(C).
    11. Bucheli, Marcelo & DeBerge, Thomas, 2024. "Multinational enterprises’ nonmarket strategies: Insights from History," International Business Review, Elsevier, vol. 33(2).
    12. Christofi, Michael & Zahoor, Nadia & Hadjielias, Elias & Adomako, Samuel, 2024. "Business model innovation and international performance of emerging market international businesses," Journal of International Management, Elsevier, vol. 30(1).
    13. Duong, Kiet Tuan & Huynh, Luu Duc Toan & Phan, Anh Dang Bao & Vu, Nam T., 2024. "From Russia with love: International risk-sharing, sanctions, and firm investments," Economics Letters, Elsevier, vol. 244(C).
    14. Fjellström, Daniella & Bai, Wensong & Oliveira, Luis & Fang, Tony, 2023. "Springboard internationalisation in times of geopolitical tensions," International Business Review, Elsevier, vol. 32(6).
    15. Huang, Dongdong & Tsui-Auch, Lai Si & Dieleman, Marleen & Gomulya, David, 2024. "Politically connected EMNCs in a (de)globalising world: A review and future research directions," International Business Review, Elsevier, vol. 33(3).
    16. Sanders, Karin & Nguyen, Phong T. & Bouckenooghe, Dave & Rafferty, Alannah E. & Schwarz, Gavin, 2024. "Human resource management system strength in times of crisis," Journal of Business Research, Elsevier, vol. 171(C).
    17. Felbermayr, Gabriel & Kirilakha, Aleksandra & Syropoulos, Constantinos & Yalcin, Erdal & Yotov, Yoto V., 2020. "The global sanctions data base," European Economic Review, Elsevier, vol. 129(C).
    18. Jing Li & Daniel M. Shapiro & Anastasia Ufimtseva & Peng Zhang, 2024. "Techno-nationalism and cross-border acquisitions in an age of geopolitical rivalry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(9), pages 1190-1203, December.
    19. Juan de Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2024. "Reducing trade with Russia: Sanctions vs. reputation," Working Papers 2406, Department of Applied Economics II, Universidad de Valencia.
    20. Griffith, David A. & Lee, Hannah S. & Yalcinkaya, Goksel, 2023. "Understanding the relationship between the use of social media and the prevalence of anxiety at the country level: a multi-country examination," International Business Review, Elsevier, vol. 32(4).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:worbus:v:59:y:2024:i:6:s1090951624000634. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.