International business (IB) scholars increasingly focus on populism—a political strategy claiming to represent ordinary people’s interests for various gains—due to its growing role as a source of nonmarket uncertainty. This article employs a history-to-theory research strategy to examine how Finnish export businesses engaged with a populist movement during the interwar period to counter labor unrest. Drawing from new institutional economics, we focus on political connections—mutually beneficial ties between firms and political actors—and conceptualize them as a nonmarket strategy to manage uncertainties. In our case study, the political actors who helped businesses to suppress strikes were initially not populists and lacked significant social influence. Over time, however, we observe a populist radicalization of these political actors. Empowered by their ties to businesses, they adopted increasingly radical agendas that ultimately threatened business interests, leading to a breakdown in their collaboration. Our study challenges the prevailing view of populism as an exogenous social force impacting businesses. Instead, we offer an endogenous perspective, highlighting the active role of business actors in shaping the trajectory of populist movements.
