The European migration crisis as a factor in foreign market entry decisions of German multinationals: Part 2 – German MNEs and the migration challenge

Abstract

The largest influx of refugees since German unification has generated new challenges and opportunities in Germany’s society, culture, politics and economy. Theory advocates the advantages for international business of institutional change, migrations and integration. However, a negative public perception can conceal and inhibit resources and opportunities for German multinational enterprises. How did the attitude of Germany towards refugees change in 2015 and 2016? How did formal and informal German institutions react on the EU refugee crisis? How has this affected decision makers in German MNEs in terms of foreign market entry choices? How do German MNEs evaluate the long-term consequences of this crisis? This paper investigates in which ways the influx of refugees and migrants who arrived in Germany has affected the international business strategy of German MNEs. It is divided into two parts. Part One analyses the impact of this crisis on German culture, society, government, politics and economics and examines how it has been perceived and displayed. Part Two will further investigate how German MNEs are influenced by the migration context in Germany and Europe and how this affects their foreign market entry strategies in emerging economies.