Adapting to Uncertainty: B2B Marketing and Industrial Value in G20, G7, and BRICS Nations

Geopolitical tensions negatively impact industrial value-added in BRICS countries, while G20 and G7 nations exhibit resilience due to robust policies. Economic policy uncertainty has mixed effects, highlighting the need for adaptive strategies to foster sustainable development.

CoE-EDP, VisionRICoE-EDP, VisionRI | Updated: 11-07-2024 15:30 IST | Created: 11-07-2024 15:30 IST
Adapting to Uncertainty: B2B Marketing and Industrial Value in G20, G7, and BRICS Nations
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Geopolitical tensions and economic policy uncertainties significantly impact B2B marketing and industrial value addition, particularly in the context of sustainable development. This dynamic is especially pronounced in the varying contexts of G20, G7, and BRICS nations, as analyzed in a study conducted by researchers from Newcastle Business School, Northumbria University, Graduate School of Economics and Management at Ural Federal University, Bangladesh Institute of Governance and Management (BIGM), University of Dhaka, University of Nicosia, Lebanese American University, Waseda University, University of Hawaii at Manoa, Goodman School of Business at Brock University, WE School in India, and HUST in China, covering data from 1990 to 2019. The study's findings illustrate how these factors influence industrial value-added and sustainable development differently across these economic blocs.

Impact of Geopolitical Tensions on BRICS Nations

Geopolitical tensions have a consistently negative effect on industrial value-added in BRICS countries. This negative impact can be attributed to the comparatively weaker institutional frameworks and economic structures in BRICS nations, which make them more vulnerable to geopolitical shocks. These disruptions hinder B2B marketing activities and impede industrial value-added processes, thus stalling sustainable development efforts. The study reveals that in BRICS countries, geopolitical tensions lead to a sharp decline in business and marketing activities, which in turn affects the overall industrial growth. This finding is critical as it highlights the need for stronger institutional frameworks and more resilient economic policies to mitigate the adverse effects of geopolitical tensions.

G20 and G7 Nations: Resilience Amidst Uncertainty

In contrast, the G20 and G7 nations appear less affected by geopolitical tensions. These countries generally possess more robust institutional frameworks and economic resilience, allowing them to absorb and manage disruptions more effectively. This resilience is partly due to their advanced and stable economic policies, which can adapt to and cushion the effects of external shocks. The study shows that in these nations, geopolitical tensions do not significantly disrupt B2B marketing activities or industrial value-added processes. This resilience is crucial for maintaining stable industrial growth and achieving sustainable development goals.

Economic Policy Uncertainty: A Double-Edged Sword

Economic policy uncertainty presents a more complex impact. In G20 and G7 nations, economic policy uncertainty generally has a positive effect on industrial value-added and sustainable development. This suggests that these countries' policy frameworks are flexible and adaptive, creating favorable conditions for industrial and marketing activities even amidst uncertainty. The study finds that economic policy uncertainty can lead to innovative and strategic responses from businesses and policymakers in G20 and G7 nations, fostering an environment conducive to industrial growth and sustainable development. This adaptability and resilience in the face of uncertainty underscore the importance of robust and flexible economic policies in promoting sustainable industrial development.

Challenges for BRICS Economies Amid Economic Uncertainties

However, in BRICS countries, the impact of economic policy uncertainty is not as uniformly positive. While there are instances where economic policy uncertainty spurs positive adaptations and innovations, these countries generally lack the same level of institutional and economic resilience found in G20 and G7 nations. As a result, economic policy uncertainties can exacerbate existing vulnerabilities, hindering sustainable development efforts. The study highlights that in BRICS countries, policy uncertainties can disrupt the flow of investments, materials, goods, and services, leading to a decline in industrial value-added and stalling sustainable development. This finding emphasizes the need for more stable and predictable economic policies in BRICS countries to support industrial growth and sustainable development.

Strategic Resilience and Institutional Robustness

The study employs the Quantiles via Moments approach to analyze the data, effectively handling country-specific heterogeneity and non-linear relationships. This methodology allows for a nuanced understanding of how different countries and economic blocs are affected by geopolitical and economic uncertainties. By using this approach, the study can capture the varying impacts of these uncertainties across different contexts, providing valuable insights for policymakers and business leaders.

The findings underscore the critical importance of stable geopolitical and economic environments for fostering sustainable industrial development. For B2B firms, these insights highlight the need for strategic resilience planning to mitigate the adverse effects of such uncertainties. Firms operating in more vulnerable economic contexts, such as BRICS countries, must adopt strategies that enhance their resilience to geopolitical and economic shocks. This might include diversifying supply chains, investing in robust risk management practices, and advocating for stronger institutional frameworks and more stable economic policies.

Moreover, the research emphasizes the crucial role of robust institutional frameworks in enhancing a country's ability to sustain industrial growth and development amidst global uncertainties. Countries with strong institutions and adaptive economic policies are better positioned to navigate the complexities of geopolitical and economic uncertainties, ensuring stable industrial growth and progress towards sustainable development goals.

Overall, the study reveals that while geopolitical tensions universally disrupt industrial value-added in less resilient economies like those in BRICS, economic policy uncertainties have a more varied impact across different global economic blocs. This underscores the importance of context-specific strategies and policies to manage and mitigate the adverse effects of these uncertainties, fostering a more stable and sustainable industrial development landscape.

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