Treading the Risks in International Management
Treading the Risks in International Management

Summary/Abstract: Multinational companies are making significant investments in high-risk developing countries lured by the lower factor cost and growth potential. Much research has deliberated on the risks related to such international business, and in particular the country risk. However, there are only a few empirical and theoretical studies that examine the managerial response of multinational companies to the contingencies in international management. This paper aims to fill this gap and specifically addresses the question of why a tighter integration of a subsidiary is still desirable despite the progression of agile networks. The empirical results of a comparative case study are discussed and a framework that articulates the dynamic approach of the parent company headquarters is presented. A map of factual events was created and juxtaposed with the hypothesized reasoning behind the observations.

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