TY - JOUR
T1 - A stranger in a strange land
T2 - Micro political risk and the multinational firm
AU - Alon, Ilan
AU - Herbert, Theodore T.
PY - 2009/3
Y1 - 2009/3
N2 - When a firm chooses to enter or continue business in a foreign market, it becomes exposed to associated political risks which should be assessed and managed. Help is available for becoming aware of the level of macro political risk; that is, the political risk across industries or all businesses in entire countries or geographic regions. Yet, surprisingly little guidance exists by which to identify and assess firm-specific political risks, termed micro political risk. Herein, we offer some new perspectives on the nature of micro political risk within a host country, illustrating how it stems from economic, societal, and governmental forces. We have compiled a number of firm-specific variables which can affect the firm's micro political risk profile, and advance an innovative methodology by which executives can address these variables and develop an assessment of their firm's micro political risk. Examples of micro political risk situations are provided, along with discussion of implementing the proposed methodology.
AB - When a firm chooses to enter or continue business in a foreign market, it becomes exposed to associated political risks which should be assessed and managed. Help is available for becoming aware of the level of macro political risk; that is, the political risk across industries or all businesses in entire countries or geographic regions. Yet, surprisingly little guidance exists by which to identify and assess firm-specific political risks, termed micro political risk. Herein, we offer some new perspectives on the nature of micro political risk within a host country, illustrating how it stems from economic, societal, and governmental forces. We have compiled a number of firm-specific variables which can affect the firm's micro political risk profile, and advance an innovative methodology by which executives can address these variables and develop an assessment of their firm's micro political risk. Examples of micro political risk situations are provided, along with discussion of implementing the proposed methodology.
KW - Environmental analysis
KW - Micro political risk
KW - Multinational corporation
KW - Risk assessment
UR - http://www.scopus.com/inward/record.url?scp=58849141698&partnerID=8YFLogxK
U2 - 10.1016/j.bushor.2008.09.004
DO - 10.1016/j.bushor.2008.09.004
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AN - SCOPUS:58849141698
SN - 0007-6813
VL - 52
SP - 127
EP - 137
JO - Business Horizons
JF - Business Horizons
IS - 2
ER -