Swedish Business in Troubled Waters: Strategic Responses to Logistical and Geopolitical Risks Along the Maritime Silk Road

Abstract

This thesis investigates how multinational enterprises (MNEs) operating from Sweden strategize to manage logistical challenges and geopolitical risks in trade linked to the Maritime Silk Road (MSR), a key component of China’s Belt and Road Initiative (BRI). As global trade becomes increasingly shaped by political tensions, regulatory shifts, and infrastructural dependencies, Swedish MNEs must navigate a complex environment where operational efficiency, compliance, and long-term competitiveness overlap. To address this, this thesis applies a qualitative research strategy grounded in Risk Management Theory and Supply Chain Management Theory. Empirical data was collected through semi-structured interviews with representatives from firms engaged in MSR-related trade activities. Thematic analysis was used to structure findings across four main themes: geopolitical risks and trade regulations, supply chain disruptions, risk management strategies, and strategic adaptations. The findings show that Swedish MNEs face increasing uncertainty related to sanctions, tariffs, regional instability, and evolving EU-China trade dynamics. While cost remains a primary factor in strategic decision-making, firms are increasingly prioritizing resilience, flexibility, and regulatory compliance. Responses range from supplier diversification and investment in digital logistics systems to a growing focus on regional partnerships and transparency. However, political exposure is often perceived as being filtered through logistics intermediaries, which may delay firms' strategic responses. This study contributes to international business literature by highlighting how geopolitical risk and supply chain strategy are interlinked in practice. It also offers practical insights for firms and policymakers aiming to maintain competitiveness and sustainability in politically sensitive trade environments.