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Chinese multinational enterprises in Europe and Africa: How do they perceive political risk?

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journal contribution
posted on 2017-09-07, 12:27 authored by Xia Han, Xiaohui Liu, Lan Gao, Pervez Ghauri
The concept of political risk has been defined from the perspective of developed-country multinational enterprises (MNEs) and has mainly focused on the political and regulatory perils in developing host countries. However, we have limited understanding of how emerging market firms perceive political risk in international marketplaces. Adopting a case study method, we examine how Chinese MNEs perceive political risk when operating in developed and developing host countries, specifically, the European Union (EU) and Africa. Our findings show that Chinese MNEs regard their home-country origin and industry-specific restrictions as major political risks in the EU. By contrast, they consider the volatile political environment in some African countries as the main source of political risk. In addition to the sharp contrast in the political and regulatory environment between the EU and African states, Chinese MNEs commonly encounter political risks in both markets due to their own behaviour.

History

School

  • Business and Economics

Department

  • Business

Published in

Management International Review

Citation

HAN, X. ...et al., 2018. Chinese multinational enterprises in Europe and Africa: How do they perceive political risk? Management International Review, 58(1), pp. 121-146.

Publisher

© Springer Verlag

Version

  • AM (Accepted Manuscript)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Acceptance date

2017-08-22

Publication date

2018

Notes

This is a post-peer-review, pre-copyedit version of an article published in Management International Review. The final authenticated version is available online at: http://dx.doi.org/10.1007/s11575-017-0331-1.

ISSN

0938-8249

eISSN

1861-8901

Language

  • en

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