IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v5y1996i3p303-318.html
   My bibliography  Save this article

Political risk assessment: Theory and the experience of Dutch firms

Author

Listed:
  • Pahud de Mortanges, Charles
  • Allers, Vivian

Abstract

This paper examines the political risk assessment strategies of 23 Dutch firms. After a review of how political risk is defined throughout the literature, different assessment methods and management of risk are discussed. We then investigated the importance of various risk elements, the experience and assessment of risk, and the implementation of risk reduction strategies. Results show that the institutionalization of political risk assessment practices is not very high in the Netherlands, and that for our sample firms risk analysis is carried out mostly in an ad hoc fashion.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:iburev:v:5:y:1996:i:3:p:303-318
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0969593196000121
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jeffrey D Simon, 1984. "A Theoretical Perspective on Political Risk," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 15(3), pages 123-143, September.
    2. Stephen J Kobrin, 1979. "Political Risk: A Review and Reconsideration," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 10(1), pages 67-80, March.
    3. Kent D Miller, 1992. "A Framework for Integrated Risk Management in International Business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(2), pages 311-331, June.
    4. Bernard Marois, 1982. "Organizational structures set up by French firms to manage political risk in foreign investment," Working Papers hal-00612752, HAL.
    5. Kennedy, Charles Jr., 1988. "Political risk management: A portfolio planning model," Business Horizons, Elsevier, vol. 31(6), pages 26-33.
    6. 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;Academy of International Business, vol. 11(1), pages 32-47, March.
    7. Rich, Gillian & Mahmoud, Essam, 1990. "Political risk forecasting by Canadian firms," International Journal of Forecasting, Elsevier, vol. 6(1), pages 89-102.
    8. Michael S Minor, 1994. "The Demise of Expropriation as an Instrument of LDC Policy 1980-1992," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(1), pages 177-188, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kipouros ANAGNOSTIS, 2011. "FDI and Impacts of Country Risk – Factors affecting the Influx of FDI in Emerging Economies," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 10(2), pages 89-97.
    2. Desbordes, Rodolphe, 2007. "The sensitivity of U.S. multinational enterprises to political and macroeconomic uncertainty: A sectoral analysis," International Business Review, Elsevier, vol. 16(6), pages 732-750, December.
    3. Jiménez, Alfredo, 2010. "Does political risk affect the scope of the expansion abroad? Evidence from Spanish MNEs," International Business Review, Elsevier, vol. 19(6), pages 619-633, December.
    4. Al Khattab, Adel & Anchor, John R. & Davies, Eleanor M.M., 2008. "The institutionalisation of political risk assessment (IPRA) in Jordanian international firms," International Business Review, Elsevier, vol. 17(6), pages 688-702, December.
    5. Jean-Francois Wen & Fatih Yilmaz, "undated". "Contract Stability and Private Infrastructure Investment," Working Papers 2010-26, Department of Economics, University of Calgary, revised 14 Oct 2010.
    6. Dang, Quyen Thao & Jasovska, Pavlina & Rammal, Hussain Gulzar, 2020. "International business-government relations: The risk management strategies of MNEs in emerging economies," Journal of World Business, Elsevier, vol. 55(1).
    7. Sebastian Hain, 2011. "Risk perception and risk management in the Middle East market: theory and practice of multinational enterprises in Saudi Arabia," Journal of Risk Research, Taylor & Francis Journals, vol. 14(7), pages 819-835, August.
    8. 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.
    9. Eduardsen, Jonas & Marinova, Svetla, 2020. "Internationalisation and risk: Literature review, integrative framework and research agenda," International Business Review, Elsevier, vol. 29(3).
    10. Xiaohui Sun & Jianbo Gao & Bin Liu & Zhenzhen Wang, 2021. "Big Data-Based Assessment of Political Risk along the Belt and Road," Sustainability, MDPI, vol. 13(7), pages 1-20, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hartwell, Christopher A. & Devinney, Timothy, 2021. "Populism, political risk, and pandemics: The challenges of political leadership for business in a post-COVID world," Journal of World Business, Elsevier, vol. 56(4).
    2. 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.
    3. Gamso, Jonas & Nelson, Roy C., 2019. "Does partnering with the World Bank shield investors from political risks in less developed countries?," Journal of World Business, Elsevier, vol. 54(5), pages 1-1.
    4. Xia Han & Xiaohui Liu & Lan Gao & Pervez Ghauri, 2018. "Chinese Multinational Enterprises in Europe and Africa: How do They Perceive Political Risk?," Management International Review, Springer, vol. 58(1), pages 121-146, February.
    5. Al Khattab, Adel & Anchor, John R. & Davies, Eleanor M.M., 2008. "The institutionalisation of political risk assessment (IPRA) in Jordanian international firms," International Business Review, Elsevier, vol. 17(6), pages 688-702, December.
    6. Qian, Xianhang & Qiu, Shanyun, 2023. "Political risk and corporate international supply chain," Journal of International Money and Finance, Elsevier, vol. 137(C).
    7. Vaaler, Paul M., 2006. "Electoral Politics and Foreign Project Investment in Developing Countries," Working Papers 06-0125, University of Illinois at Urbana-Champaign, College of Business.
    8. Caroline T Witte & Martijn J Burger & Elena I Ianchovichina & Enrico Pennings, 2017. "Dodging bullets: The heterogeneous effect of political violence on greenfield FDI," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(7), pages 862-892, September.
    9. Jakobsen, Jo, 2010. "Old problems remain, new ones crop up: Political risk in the 21st century," Business Horizons, Elsevier, vol. 53(5), pages 481-490, September.
    10. Charles E. Stevens & En Xie & Mike W. Peng, 2016. "Toward a legitimacy-based view of political risk: The case of Google and Yahoo in China," Strategic Management Journal, Wiley Blackwell, vol. 37(5), pages 945-963, May.
    11. Restrepo, Diana & Correia, Ricardo & Población, Javier, 2012. "Political risk and corporate investment decisions," DEE - Working Papers. Business Economics. WB 13114, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    12. Diego Quer & Enrique Claver & Laura Rienda, 2012. "Political risk, cultural distance, and outward foreign direct investment: Empirical evidence from large Chinese firms," Asia Pacific Journal of Management, Springer, vol. 29(4), pages 1089-1104, December.
    13. Nathan M. Jensen & Noel P. Johnston & Chia-yi Lee & Hadi Sahin, 2020. "Crisis and contract breach: The domestic and international determinants of expropriation," The Review of International Organizations, Springer, vol. 15(4), pages 869-898, October.
    14. Andersen, O. & Buvik, A., 2002. "Firms' internationalization and alternative approaches to the international customer/market selection," International Business Review, Elsevier, vol. 11(3), pages 347-363, June.
    15. Geert Bekaert & Campbell R Harvey & Christian T Lundblad & Stephan Siegel, 2014. "Political risk spreads," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(4), pages 471-493, May.
    16. Ross, Donald G. & Pike, Richard H., 1997. "Export credit risks and the trade credit offer: some Canadian evidence," Journal of Multinational Financial Management, Elsevier, vol. 7(1), pages 55-70, April.
    17. Jan Hendrik Fisch & Bjoern Schmeisser, 0. "Phasing the operation mode of foreign subsidiaries: Reaping the benefits of multinationality through internal capital markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-33.
    18. Haley, Usha C. V., 2003. "Assessing and controlling business risks in China," Journal of International Management, Elsevier, vol. 9(3), pages 237-252.
    19. Dang, Quyen Thao & Jasovska, Pavlina & Rammal, Hussain Gulzar, 2020. "International business-government relations: The risk management strategies of MNEs in emerging economies," Journal of World Business, Elsevier, vol. 55(1).
    20. Fang-Yi Lo & Yu-Ching Chiao & Chwo-Ming Joseph Yu, 2016. "Network and Institutional Effects on SMEs’ Entry Strategies," Management International Review, Springer, vol. 56(4), pages 531-563, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:5:y:1996:i:3:p:303-318. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.