Boycotts and MNCs: threat or catalyst for change? a systematic literature review and future research implications

Boycotts have become a prominent form of collective action confronting multinational corporations (MNCs) operating across borders. Triggered by geopolitical tensions, cultural conflicts, or corporate misconduct, boycotts can cause financial losses, reputational damage, operational disruptions, and market access challenges for MNCs. Despite their growing prevalence, research on boycotts remains fragmented and offers limited understanding of how boycotts unfold across heterogeneous institutional contexts and why their consequences vary so widely across MNCs. This study systematically reviews 87 peer-reviewed articles published between 1985 and 2024 in international business, management, marketing, and sociology journals. Integrating insights across these literatures, we develop a framework that reconceptualizes boycotts as both constraints and potential catalysts for organizational and societal change. Whereas prior IB research has predominantly emphasized the negative consequences of boycotts, we argue that boycotts may lead to positive outcomes when MNCs’ responses align with the normative orientation of boycott demands. We also demonstrate that MNCs are not merely passive targets of boycotts but active agents that can shape boycotts and their outcomes through their responses. Finally, we propose several avenues for future research to broaden our understanding of how MNCs can manage and leverage boycotts as opportunities for strategic advantage while fostering societal change.