Understanding the Impact of Geopolitical Pressures on High-Tech SME Investment Decisions

In a recent article in the British Journal of Management, Associate Professor Evis Sinani and Assistant Professor Flladina Zilja examine how rising geopolitical tensions shape investment decisions for international high-tech SMEs. The study moves beyond typical risk factors to focus on the unique challenges posed by geopolitical risk from strained diplomatic relations between countries. Their findings show that geopolitical risk often discourages investment by creating political legitimacy concerns. However, high-tech SMEs with strong innovation capabilities are better equipped to manage these risks, while those with broader international operations tend to reduce investments under such pressures. This research offers valuable insights for high-tech SMEs and policymakers navigating today’s increasingly complex global landscape. LINK