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European perception towards political risk in Russia
University West, Department of Economics and IT, Division of Business Administration.
University West, Department of Economics and IT, Division of Business Administration.
2016 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This study revolves around political risk perception toward Russia from the viewpoints of European experts and managers. The recent developments in Russia and the political standoff between Russia and western European countries led to research this sensitive topic. Russian annexation of Crimea has changed the political landscape, surely risk perceptions are bound to change towards Russia as well. Political and Russia experts as well as managers were asked about their perceptions today. These perceptions are then discussed on the cognitive and emotional levels. The managers in this study are part of European MNE's that are present, planning to enter or pulled out of Russia. The experts are part of Chambers of Commerce for Russia with an extra Russian political researcher.

The theoretical frame of references is divided into political risk and risk perceptions. Risk perceptions are further divided into cognitive and emotional level. The theoretical framework consists of literature from some of the key contributors within the field of International Business, Political risk and Psychology. The empirical part consists of seven interviews from European managers and four experts. The analysis part is based on these experts and managers' perceptions. It is analyzed through a two-level perception theory along with country of origin and business sectors patterns.The study is conducted as a qualitative research. As the population of the study would include every European MNE, the authors have applied a convenient sample to represent the population of the study. The study participants come from Finland, Sweden, France and Russia. The data was gathered by semi-structured interviews via e-mails and telephone calls between the 3rd and the 24th of May 2016.

The results of the study highlight the contrasted political risk perceptions by experts and managers towards Russia. Europeans' perceptions have changed very little towards Russia despite the new situation and accrued tensions. Based on their actual answers, interviewees see Russia as challenging, yet political risks can be managed. What matters to them is the state of the economy and economic prospect rather than political considerations. Between the lines however, they also display a sense of fear and challenge associated with this country. It shows that their actual thoughts are more complex that they are willing to tell.

Place, publisher, year, edition, pages
2016. , 50 p.
Keyword [en]
Political risk, risk perception, risk management, manager’s psychology, Russia
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hv:diva-9898Local ID: EXD951OAI: oai:DiVA.org:hv-9898DiVA: diva2:968960
Subject / course
Business administration
Supervisors
Examiners
Available from: 2016-09-14 Created: 2016-09-13 Last updated: 2016-09-14Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf