This paper examines how firms respond to the geopolitical crises by engaging home-country stakeholders. Drawing on the recent U.S. sanctions on China and using the sample of Chinese listed firms, we find that when sanctions are imposed on specific industries, firms within these sectors are likely to perceive an increased need to seek financial support from their home-country stakeholders, such as banks, investors, and suppliers, to preserve resources and effectively respond to the geopolitical crisis. Furthermore, we investigate the conditions under which collaboration between focal firms and stakeholders is more likely to occur. Our findings reveal that firms exhibiting stronger financial performance and operating in more turbulent industries are more inclined to secure financial resources from stakeholders. This paper contributes to the crisis research by exploring alternative strategies for crisis response and advancing our understanding of stakeholder theory by highlighting the reciprocal relationship between focal firms and their stakeholders.
