Northampton Electronic Collection of Theses and Research

Political risk assessment by multinational corporations in African markets: a Nigerian perspective

Mshelia, J. B. and Anchor, J. R. (2018) Political risk assessment by multinational corporations in African markets: a Nigerian perspective. Thunderbird International Business Review. 1096-4762. (In Press)

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Abstract:
Political risk assessment (PRA) is one of the determinants of foreign direct investment (FDI) and the competitiveness of multinational corporations (MNCs), yet little is known about its use in African markets. This study critically investigates the PRA techniques used by MNCs in Nigeria and their applicability. It uses a multimethod approach to analyze data collected from MNCs and the data set of the International Country Risk Guide (ICRG) PRA annual rating for Nigeria from 2011 to 2015. The findings reveal that most firms use qualitative, rather than quantitative, PRA techniques. Regional variations in the outcome of PRA within Nigeria could also contribute to the low use of quantitative techniques. This article identifies that firms are prepared to invest in Nigeria, in spite of high political risk, due to its economic and financial attractiveness. This article’s findings offer some implications for practice with some suggestions on how it could influence firms’ internationalization and their conduct of PRA.
Uncontrolled Keywords:
Africa, foreign direct investment, internationalization, multinational corporations, Nigeria, political risk assessment
Subjects:
H Social Sciences > HC Economic History and Conditions > HC94 By region or country > HC1055 Nigeria
H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
Creators:
Mshelia, J. B. and Anchor, J. R.
Publisher:
John Wiley & Sons
Faculties, Divisions and Institutes:
University Faculties, Divisions and Research Centres - OLD > Faculty of Business & Law > Business
Faculties > Faculty of Business & Law > International Strategy & Business
Date:
4 February 2018
Date Type:
Published Online
Journal or Publication Title:
Thunderbird International Business Review
Language:
English
DOI:
10.1002/tie.21964
ISSN:
1096-4762
Status:
In Press
Refereed:
Yes
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