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Location and operation mode decision making in the Middle East: a case study approach

Tim Rogmans (College of Business, Zayed University, Dubai, United Arab Emirates)

Journal of Strategy and Management

ISSN: 1755-425X

Article publication date: 10 May 2013

753

Abstract

Purpose

The purpose of this paper is to develop and test propositions on location and entry mode decision making by foreign direct investors in the Middle East region.

Design/methodology/approach

Case study approach, based on in‐depth interviews with decision makers of multinational companies operating in the Middle East.

Findings

The results show that foreign investors in the Middle East prefer to maintain the highest level of ownership and control permitted in a country, even in the face of political risk.

Originality/value

Location and entry mode decision making has typically been studied using quantitative methods. This research uses a case study approach and develops a new model of entry mode decision making, demonstrating that experienced foreign investors do not view joint ventures as an effective mechanism to manage political risk, but prefer to keep political risk management in‐house.

Keywords

Citation

Rogmans, T. (2013), "Location and operation mode decision making in the Middle East: a case study approach", Journal of Strategy and Management, Vol. 6 No. 2, pp. 190-206. https://doi.org/10.1108/17554251311322440

Publisher

:

Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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