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The use of political risk assessment techniques in Jordanian multinational corporations

Al Khattab, Adel Abed Rabbo, Awwad, Abdulkareem, Anchor, J.R and Davies, Eleanor M.M. (2011) The use of political risk assessment techniques in Jordanian multinational corporations. Journal of Risk Research, 14 (1). pp. 97-109. ISSN 1366-9877

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    Abstract

    This paper describes and explains the use of political risk assessment techniques in Jordanian multinational corporations (MNCs). A multi-method approach to collect data was followed. A self-report questionnaire was delivered by hand to the general managers of all Jordanian MNCs which were identified as operating internationally. Semi-structured interviews were used as a means of elaborating on the findings from the questionnaire. The study identified the extensive use of heuristic political risk assessment techniques (due to their flexibility, simplicity and low cost). Scientific techniques, on the other hand, were used by only a minority of MNCs. As has been the case in earlier studies, flexibility, simplicity and cost considerations were all found to be influential in this regard. However, the study also found that key decision-makers in Jordanian MNCs believe that official data are subject to censorship and are therefore not reliable. This undermines the efficiency of using highly sophisticated scientific techniques. Since there are a number of other countries in the Middle East - and elsewhere - in which these considerations also apply, this finding has important implications for international businesses which operate in these countries, whatever their home country.

    Item Type: Article
    Additional Information: This is an electronic version of an article published in Journal of Risk Research, 2011, 14 (1). Journal of Risk Research is available online at: http://www.informaworld.com/openurl?genre=article&issn=1366%2d9877&volume=14&issue=1&spage=97
    Uncontrolled Keywords: Political risk; techniques; multinational corporations; Jordan; international business
    Subjects: H Social Sciences > HD Industries. Land use. Labor
    Schools: The Business School
    The Business School > Emerging Markets Research Group
    Related URLs:
    Depositing User: Cherry Edmunds
    Date Deposited: 11 Nov 2010 11:49
    Last Modified: 01 Jul 2012 01:38
    URI: http://eprints.hud.ac.uk/id/eprint/9029

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