Managerial perceptions of political risk in international projects

Al Khattab, Adel, Anchor, J.R and Davies, Eleanor M.M. (2007) Managerial perceptions of political risk in international projects. International Journal of Project Management, 25 (7). pp. 734-743. ISSN 02637863

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Abstract

This paper examines the vulnerability of international projects to political risks. A brief review of the literature on general risks – natural, financial, cultural and political – is undertaken and then a more detailed review of the literature on political risk is presented. It was found that relatively few studies of political risk, particularly in the context of international projects, have been carried out. More particularly the focus has been almost exclusively on developed, rather than developing, countries.

Questionnaires were distributed therefore to the entire target population of Jordanian international projects. The findings suggest that the political risk associated with international projects poses a threat to the majority of respondents and that the vulnerability to political risk is related to a firm’s degree of internationalisation. International projects are more concerned about host-society and interstate related risks than host-government related risks.

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