Global business isn't as "global" as most people think. Despite headlines about powerful corporations dominating the world economy, the reality is far more complex.
For Dr. Alain Verbeke at the University of Calgary's Haskayne School of Business, most multinational enterprises (MNEs) do not at all deserve their bad reputation.
The professor of strategy and global management, and Fellow of the Royal Society of Canada, is determined to set the record straight.
Challenging the popular narrative
Big businesses are often portrayed as too powerful, prompting calls for stricter regulation and greater social responsibility.
"I am continuously surprised to read narratives in the media, and often also in research publications, suggesting that large business firms wield too much power and should be more heavily regulated and forced to do more for society," says Verbeke, PhD.
Verbeke says this view misses an important truth: many of today's megafirms, especially those based in advanced democracies, are first-generation companies built by entrepreneurs from the ground up.
They drive innovation, create jobs and contribute to technological progress. Their dominance is far from guaranteed, since competition is fierce, and success can be fleeting.
Verbeke's work goes against the grain by taking on the role of highlighting these firms' vulnerabilities and heralding their successes.
The myth of "global" enterprises
Verbeke says most of the world's largest firms aren't truly global. Instead, they succeed in specific regions, navigating a patchwork of political, economic and cultural systems.
"They operate successfully only in parts of the world economy," he says.
Today, geopolitical tensions and the growing trend of "decoupling" between major economies makes it even harder for firms to operate effectively, says Verbeke, adding that, with the constant threat of losing the political licence to operate, where governments can essentially revoke permission for firms to do business, you have a recipe for uncertainty.
With new funding from the Social Sciences and Humanities Research Council, Verbeke is undertaking research that asks a critical question: What stops firms from achieving true global success? It explores the barriers that prevent companies from building and sustaining operations across borders, from regulatory hurdles to political risk.
Why this research matters for Canada
Canada has few home-grown multinational enterprises. Verbeke says building globally competitive firms would strengthen the domestic economy and make it more resilient to shocks.
Yet he says Canada often undervalues large-scale projects and world-class players in business. Verbeke aims to change that conversation by showing how MNEs create enormous value not just for shareholders, but for employees and communities worldwide.
The bigger picture
Defending multinational enterprises isn't about protecting corporate giants for their own sake; it's about recognizing their role in economic development and innovation.
Verbeke says that, when these firms thrive, they bring jobs, technology and investment to the regions where they operate. Misunderstanding their challenges can lead to policies that weaken them, and the economies that depend on them.
Verbeke's research is one of the few academic voices pushing back against misconceptions about global business.
It doesn't just inform boardrooms; it has implications for policymakers, economists and anyone interested in how globalization evolves in an era of political fragmentation.
In a world where global integration is under threat, Verbeke says, understanding the vulnerabilities of multinational enterprises is more important than ever.
If Canada wants to compete, he adds, it needs to appreciate the value these firms bring and support the conditions which allow them to succeed.
