This study examines how multinational enterprises (MNEs) strategically respond to dual legitimacy challenges arising from geopolitical conflicts between their home and host countries. MNEs might encounter legitimacy issues in both host countries, where they may be seen as adversarial economic entities, and home countries, where their operations in hostile nations might be perceived as conflicting with national interests. Using a resource dependence perspective, we develop a two-by-two matrix typology of MNEs' strategic responses based on the level of economic stakes—high and low—in both the host and home countries. Additionally, we consider how MNE salience and the intensity of geopolitical conflict influence their strategic choices. Our study advances international business studies by offering a theoretical framework for understanding how MNEs navigate complex geopolitical tensions.
