Loading...
Navigating Rare Earth Supply Shocks: International Business Strategies of GE Healthcare and Siemens Healthineers
Giordano, Francesca Giovanna
Giordano, Francesca Giovanna
Citations
Altmetric:
Abstract
Rare earth elements (REEs), are essential inputs for magnetic resonance imaging (MRI) and computed tomography (CT) technologies. Their global supply, however, is highly concentrated in China, which controls most refining and a significant portion of upstream processing. This concentration exposes the medical imaging sector to recurring geopolitical shocks, as demonstrated by China’s 2010–2011 export quotas and the 2024–2025 export licensing controls. The purpose of this qualitative, comparative multiple-case study is to examine how GE Healthcare and Siemens Healthineers respond to these REE disruptions and to explain why their resilience strategies diverge. The study draws exclusively on secondary data, including corporate reports, scientific literature, policy documents, and industry analyses, analysed through deductive coding and cross-case comparison. The analysis shows that although both firms face the same REE shock, they respond in markedly different ways due to differences in capabilities, supply chain structures, and institutional environments. The findings show that although both firms depend on the same VRIN inputs, Siemens Healthineers adopts a proactive, circularity-oriented, and institutionally aligned strategy, while GE Healthcare follows a more reactive, domestically anchored approach shaped by U.S. security-driven policies. By integrating the ResourceBased View, Dynamic Capabilities, the OLI paradigm, and Institutional Theory, the study develops a multi-level explanation of resilience differences. Practical implications highlight the managerial importance of supply diversification, lifecycle circularity, institutional alignment, and advanced risk-sensing capabilities for firms operating in critical-materialdependent industries. The study also offers policy-relevant insights regarding the role of national regulatory frameworks in shaping corporate adaptation and outlines several areas for future research.
Description
Date
2025
Journal Title
Journal ISSN
Volume Title
Publisher
Collections
Research Projects
Organizational Units
Journal Issue
Keywords
Supply chain resilience, International business strategy, Dynamic capabilities
Citation
Giordano, Francesca Giovanna. "Navigating Rare Earth Supply Shocks: International Business Strategies of GE Healthcare and Siemens Healthineers". BA in International Business Capstone, John Cabot University, Rome, Italy. 2025.