“Managers are now discovering, geopolitics can also create head winds” highlights Prof. Srividya Jandhyala

+The Great Disruption: How Geopolitics is Changing Companies, Managers, and Work was released by Cambridge University Press. This groundbreaking book, authored by Dr. Srividya Jandhyala, Associate Professor at ESSEC Business School, offers a compelling analysis of how today’s geopolitical shocks are reshaping the very fabric of corporate life—from strategy and leadership to HR and global operations. At the ESSEC Institute for Geopolitics & Business, we are proud to host Srividya for an exclusive conversation on the ideas behind the book, the real-world cases that inspired it, and what business leaders must learn from the new age of disruption.

Srividya, in your new book, you speak of a “Great Disruption” shaking the foundations of global business. Is this a passing storm—or a new climate we all need to adapt to?

Srividya Jandhyala - The disruptions I describe are really about structural changes to the institutional architecture that has supported cross-border business activity. There are many systems that have been developed to facilitate market access for globally expanding companies, create a level playing field for companies from different countries, safeguard assets in foreign markets, or lower adaptation costs with institutional alignment. But companies have to now consider how they will continue operating across borders when these structures are changing.

A useful analogy is a party game like stacking the cups. You stack up the cups to make the tallest free-standing pyramid. As long as the foundation remains strong, the tower will stand. But what happens when we start removing cups at the bottom of the pyramid? We can remove the first couple of ones and the tower will still stand. As we remove more, the tower will wobble. And at some point, it will collapse. So, the challenge for global businesses is to figure out an alternate system to support their international operations as the system changes.

Geopolitical risk was once the domain of diplomats and defense ministries. Today, it’s a boardroom concern. When did that shift occur—and why are companies now on the front lines?

S.J. - Managers are smart but busy people. They are juggling many things, so they will focus their attention and their company’s resources on issues that they believe are critical. For many years, they didn’t have to pay special attention to geopolitics. It wasn’t that geopolitics was irrelevant; rather, it was something that seemed to provide a tail wind to companies expanding abroad. There were greater market opportunities in different countries with privatization, liberalization, and greater international integration. Global companies optimized their businesses for this state of the world. But as they are now discovering, geopolitics can also create head winds. To adapt to the new world, top managers have to understand the external changes, internalize the impact, and pivot to align with longer term trends. Hence, it is a boardroom concern.

From semiconductors to solar panels, governments are redrawing the global map of value chains. How are companies responding when political borders collide with commercial logic?

S.J. - Companies are adapting by re-thinking where work is done. Supply chains are moving from just-in-time to just-in-case. There is more duplication of functions across countries. More companies are exploring whether they can create local operations for local markets. As an example, Astra Zeneca, one of the world’s largest pharmaceutical companies, is looking to serve its customers in Western markets and those in China using two separate and localized supply chains.

You’ve studied how geopolitical shocks impact innovation, investment, and competitive advantage. What surprised you most in your research—and what should business leaders take away from it?

S.J. - Where are you really from? That really seems to be the key question. Corporate nationality, or where a firm is from, drives the reaction of governments, regulators, and other stakeholders. This means the geopolitical risk a company faces may have nothing to do with what the company does or how good its products and services are. Simply being from a country that is viewed as a geopolitical adversary may be enough to generate government mistrust, lower customers’ willingness to buy, and increase regulatory restrictions. At the same time, simply being from a geopolitically friendly country can generate new opportunities for revenues and growth.

If you were advising a CEO tomorrow morning, what would you say are the three geopolitical questions every company should now be asking itself?

S.J. - Here are three things to consider:

1. What is the main implication of broader geopolitical changes for my company? What internal and external expertise will help me understand this key challenge?
2. What are the new opportunities for revenue generation? How can our company win in the new world?
3. How can we organize the company to align with the strategy and operations needed to adapt to the changing world?

Some sectors—tech, energy, defense—seem naturally exposed to geopolitical shifts. But are there hidden fault lines in industries we don’t typically associate with geopolitics?

S.J. - You are right that “strategic” sectors are usually at the center of geopolitics. But it is not always clear what is, or could become, a strategic sector. Today, whether you are in the business of making brightly colored toys for toddlers, creating movies to entertain people, or satisfying a teenager’s quest for the latest fashions, your company is likely to be assessing and responding to geopolitical risks.

Not all firms have the resources of a multinational giant. For small and mid-sized businesses, is geopolitical awareness a luxury—or a necessity for survival in a fragmented world?

S.J. - In some ways, size doesn’t matter. You may rightly wonder why small and medium-sized enterprises that have no exports or foreign operations should pay attention to geopolitics. Surely, you could argue, they have more pressing concerns – making payroll, focusing on sales, investing in new technology, or retaining their star employees. But even these companies will face second order effects of geopolitics. Their customer base may be shifting as long-time customers are themselves caught in the midst of geopolitical tensions. National security considerations may shape who they can hire. Raw material costs may be impacted by tariffs and anti-dumping duties. Government subsidies may change the nature of market competition.

In light of your work, what do you see as the mission of the ESSEC Institute for Geopolitics & Business? Why is it urgent for academic institutions to take a leading role in this debate?

S.J. - Most managers of global companies came of age in an era where geopolitics did not have a constraining role. They went to business school to learn about reading financial statements, analyzing investments, and selling to old and new customers. They had little-to-no training on navigating a world dominated by grand politics. As they face a new landscape, they have to figure it out on the fly. Business schools can support them with tailored courses and by bringing sophisticated and nuanced research on effective strategies to manage a changing geopolitical environment to the classroom.

ABOUT SRIVIDYA JANDHYALA

Dr. Srividya Jandhyala is an Associate Professor of Management at ESSEC Business School. Her research on global strategy, geopolitics, and international business has been published in top academic journals. She is the author of the best-selling book “The Great Disruption: How Geopolitics is Changing Companies, Managers, and Work” (Cambridge University Press, 2025). She received her PhD in Management from The Wharton School, University of Pennsylvania.

ABOUT THE ESSEC INSTITUTE FOR GEOPOLITICS & BUSINESS

The ESSEC Institute for Geopolitics & Business was created in 2024 to help companies and leaders navigate a world of geopolitical disruption, economic fragmentation, and strategic uncertainty.

We examine how global power shifts transform business models, how firms are becoming geopolitical actors, and how corporate strategies must adapt to the end of business as usual.

Rooted in ESSEC’s academic excellence in Cergy-Paris, Rabat and Singapore, the Institute draws on three flagship centers:

• the IRENE Center for Negotiation & Mediation,

• the Center for Geopolitics, Defense & Leadership, and

• the Center for European Law & Economics.

Together, they bridge cutting-edge research, executive education, and strategic foresight.

Our ambition: to empower geopolitics-fit leaders and build resilient, vigilant organizations for an age of global brutalization.