The institutionalisation of political risk assessment (IPRA) in Jordanian international firms
This paper investigates the determinants of the institutionalisation of political risk assessment (IPRA) within publicly traded international firms in Jordan. The aim is to contribute to the development of IPRA theory by identifying indicators of institutionalisation; by describing and explaining their determinants; and by investigating their relative importance. The paper also represents one of the first studies of political risk assessment of firms in a Middle East context. The study focuses on firm-specific characteristics and extends previous research by investigating firms' size and degree of internationalisation. A survey strategy was adopted and self-administered questionnaires were distributed to the entire target population of Jordanian international firms. 44 usable responses were obtained (54.9%). Non-parametric statistics were used to test the research hypotheses. The main findings are that the level of institutionalisation of political risk assessment (PRA) within firms is significantly and positively correlated with a firm's total assets, international revenue and number of operating countries. Of the three significant determinants of institutionalisation, the number of operating countries is found to be the most important. The more countries in which a firm operates, the more likely it is to face significant risks, and so to institutionalise political risk assessment.
Volume (Year): 17 (2008)
Issue (Month): 6 (December)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kabir Hassan, M. & Maroney, Neal C. & Monir El-Sady, Hassan & Telfah, Ahmad, 2003. "Country risk and stock market volatility, predictability, and diversification in the Middle East and Africa," Economic Systems, Elsevier, vol. 27(1), pages 63-82, March.
- Kobrin, Stephen J., 1981. "Political assessment by international firms: Models or methodologies?," Journal of Policy Modeling, Elsevier, vol. 3(2), pages 251-270, May.
- Bilson, Christopher M. & Brailsford, Timothy J. & Hooper, Vincent C., 2002. "The explanatory power of political risk in emerging markets," International Review of Financial Analysis, Elsevier, vol. 11(1), pages 1-27.
- Goriaev, Alexei P. & Sonin, Konstantin, 2005. "Is Political Risk Company-Specific? The Market Side of the Yukos Affair," CEPR Discussion Papers 5076, C.E.P.R. Discussion Papers.
- Philipp Harms, 2002. "Political risk and equity investment in developing countries," Applied Economics Letters, Taylor & Francis Journals, vol. 9(6), pages 377-380.
- Iankova, Elena & Katz, Jan, 2003. "Strategies for political risk mediation by international firms in transition economies: the case of Bulgaria," Journal of World Business, Elsevier, vol. 38(3), pages 182-203, August.
- Pahud de Mortanges, Charles & Allers, Vivian, 1996. "Political risk assessment: Theory and the experience of Dutch firms," International Business Review, Elsevier, vol. 5(3), pages 303-318, June.
- Keillor, Bruce D. & Wilkinson, Timothy J. & Owens, Deborah, 2005. "Threats to international operations: dealing with political risk at the firm level," Journal of Business Research, Elsevier, vol. 58(5), pages 629-635, May.
- Rich, Gillian & Mahmoud, Essam, 1990. "Political risk forecasting by Canadian firms," International Journal of Forecasting, Elsevier, vol. 6(1), pages 89-102.
- Tsai, Ming-Chih & Su, Chin-Hui, 2005. "Political risk assessment of five East Asian ports--the viewpoints of global carriers," Marine Policy, Elsevier, vol. 29(4), pages 291-298, July.
- International Monetary Fund, 2004. "Risk Instability and the Pattern of Foreign Direct Investment in the Middle East and North Africa Region," IMF Working Papers 04/139, International Monetary Fund.
- Oetzel, Jennifer M. & Bettis, Richard A. & Zenner, Marc, 2001. "Country risk measures: how risky are they?," Journal of World Business, Elsevier, vol. 36(2), pages 128-145, July.
- Jonathan L Calof, 1994. "The Relationship Between Firm Size and Export Behavior Revisited," Journal of International Business Studies, Palgrave Macmillan, vol. 25(2), pages 367-387, June.
- Jean-Claude Cosset & Jean Roy, 1991. "The Determinants of Country Risk Ratings," Journal of International Business Studies, Palgrave Macmillan, vol. 22(1), pages 135-142, March.
- Kennedy, Charles Jr., 1988. "Political risk management: A portfolio planning model," Business Horizons, Elsevier, vol. 31(6), pages 26-33.
- Keillor, Bruce D. & Boller, Gregory W. & Ferrell, O. C., 1997. "Firm-level political behavior in the global marketplace," Journal of Business Research, Elsevier, vol. 40(2), pages 113-126, October.
- Hefeker, Carsten & Busse, Matthias, 2005.
"Political Risk, Institutions and Foreign Direct Investment,"
HWWA Discussion Papers
315, Hamburg Institute of International Economics (HWWA).
- Busse, Matthias & Hefeker, Carsten, 2007. "Political risk, institutions and foreign direct investment," European Journal of Political Economy, Elsevier, vol. 23(2), pages 397-415, June.
- Henisz, Witold J, 2000. "The Institutional Environment for Multinational Investment," Journal of Law, Economics and Organization, Oxford University Press, vol. 16(2), pages 334-64, October.
- Stephen J Kobrin & John Basek & Stephen Blank & Joseph La Palombara, 1980. "The Assessment and Evaluation of Noneconomic Environments by American Firms: A Preliminary Report," Journal of International Business Studies, Palgrave Macmillan, vol. 11(1), pages 32-47, March.
- Oetzel, Jennifer, 2005. "Smaller may be beautiful but is it more risky? Assessing and managing political and economic risk in Costa Rica," International Business Review, Elsevier, vol. 14(6), pages 765-790, December.
When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:17:y:2008:i:6:p:688-702. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.