The use of political risk assessment techniques in Jordanian multinational corporations

Adel Abed Rabbo Al Khattab, Abdulkareem Awwad, John Anchor, Eleanor Davies

Research output: Contribution to journalArticle

2 Citations (Scopus)

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.

LanguageEnglish
Pages97-109
Number of pages13
JournalJournal of Risk Research
Volume14
Issue number1
Early online date5 Oct 2010
DOIs
Publication statusPublished - 1 Jan 2011

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multinational corporation
Risk assessment
risk assessment
Industry
flexibility
questionnaire
censorship
costs
Middle East
decision maker
heuristics
minority
manager
Costs
Managers
efficiency
Political risk
Multinational corporations
interview
Simplicity

Cite this

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The use of political risk assessment techniques in Jordanian multinational corporations. / Al Khattab, Adel Abed Rabbo; Awwad, Abdulkareem; Anchor, John; Davies, Eleanor.

In: Journal of Risk Research, Vol. 14, No. 1, 01.01.2011, p. 97-109.

Research output: Contribution to journalArticle

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