The Challenge of Political Risk : Exploring the political risk management of Swedsih multinational corporations

University dissertation from Stockholm : Statsvetenskapliga institutionen

Abstract: In an overarching aim to bridge the gap between political science and international business studies, this study explores how, against the backgrond of globalization, multinational coprorations understand and deal with the influence of many differet and sometimes very dynamic political environments, by focusing on the political risk management of a number of Swedish multinational corporations invoved in foreign investing. Based on interviewswith coproate executives in these corporations, this qualitative study found that Swedish invetsors use a "pragmatic" approach toeards political risk and the political envrionments in which they operate. The study also drwas attention to teh role of multinational corporations in teh formation of politica risk as teh result of corporate politiacl activity and the possibility that multinational corporations are moving towards a more pronounced political role.It is suggetsed that political risk needs to be considered not only in terms of the potential impact of the political environment on firms, but also in terms of teh impact of teh firm on the environment, as the political environment cannot be taken as a given, but is the outcome of a process that involves adaption to the environment as well as attempts to change that environment.

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