Political risks of western companies in a transforming country evidence from Russia 2014

Abstract

Foreign companies form an integral part of the economic landscape in their respective host countries. Western enterprises have to face specific risks and obstacles related to the current local democratic and economic development stage and they are confronted with political risks such as corruption, favouritism or legal uncertainty. This paper is based on the evidence collected during a field study conducted between March and September 2014 in Austria and Russia. The author conducted 23 qualitative interviews with Austrian businessrepresentatives operating in Russia and Russian experts concerning various aspects of the business environment. The results of this study are intended to be used for the improvement of the understanding of specific business conditions prevailing in Russia. This paper should be considered a valuable foundation for further in-depth research both on political risks and individual factors.