Managing Multinationals In The Middle East

This study investigated whether known economic and international business theories available in the literature are meaningful enough to explain the nature, existence and role of multinational companies (MNCs) in the Middle East, particularly Saudi Arabia. Two sets of questionnaires were distributed in major cities of Saudi Arabia -- one set for 100 multinational managers and another for 280 multinational customers. 234 questionnaires were collected -- 45 from multinational managers and 189 from customers. This represents a total response rate of 62 percent, which is adequate for this study.The empirical results, supported with comprehensive secondary data, confirmed virtually all of the research hypotheses. The study found that joint ventures are the dominant form of multinational business in Saudi Arabia, both in manufacturing and service industries. The core roles of MNCs in the Saudi-foreign ventures are evident in the cross-border value-adding activities of marketing, trading, manufacturing, consulting, contracting, project management, insurance, hotel operation and banking. Likewise, MNCs provide licensing, franchising, financing services and various auxiliary roles in the Kingdom. Therefore, the multinationality of a firm or a group of firms operating across national boundaries is not necessarily synonymous with international production -- the main subject of contemporary multinational theories.The respondents generally perceived the competitiveness of MNCs operating in Saudi Arabia as a function of a number of economic, management, marketing, technological and other variables. They also perceived the contributions of MNCs to the KingdomÍs socio-economic developments as significant and positive.The study also found that understanding Islamic values and ethics is important for MNCs. In this regard, the researcher looked at some objective indicators of business success and related them to selected measures of MNCsÍ local cultural awareness and responsiveness. The results indicate that the business success of multinationals operating in Saudi Arabia is positively related to their local cultural awareness and responsiveness. Along this line, this study covers some vital elements of Islamic culture, which will help MNCs understand further the cultural needs, values and sensitivities of the Saudi people and Muslims in general.

This comprehensive analysis discusses how American and non-American multinational corporations (MNCs) can plan, manage, and control their business activities and invest in four selected Middle East countries: Egypt, Kuwait, Jordan, Saudi Arabaia—and as a special unique feature, a fifth country, Israel. Abdallah covers in detail the tax systems and regulations and their effect on business in the Middle East. He looks at the future of the business environment and its effect on accounting in the Middle East during the first decades of the new century, and examines the role of different local and international organizations that are helping to make the Middle East an excellent place to do business. Combining the Arab countries with Israel into a single volume, and writing in a remarkably clear style, Abadallah offers practical guidelines for Americans and other MNCs, potential international investors, large accounting firms, and even Middle East governments themselves. He helps businesses conduct feasibility studies for joint venture startups in the Middle East countries covered; helps MNCs manage their business more effectively and avoid conflicts with governments or cultural attitudes; offers managers and officers an understanding of Middle East environmental factors that may significantly affect their businesses; helps MNCs evaluate the performance of Middle East subsidiary managers; helps MNCs develop strategic transfer pricing policies that fit Middle East countries and which go according to accounting systems and practices there as well as in their home countries; and goes deeply into the accounting systems and practices of the countries under analysis here and compares them with both U.S. Generally Accepted Accounting Principles and International Accounting Standards. This volume is of special value to corporate executives in or planning to enter the Middle East market, graduate students, and teachers of international business and accounting, and practicing accountants with Middle East clients (or who seek to acquire them).

16.5 Within Western Countries -- 16.6 Between the Two Groups -- 16.7 Future Market Scenarios in the Middle East -- References -- The Editor -- The Authors -- Author Index -- Subject Index

For the last 60 years, Saudi Arabia has assumed a vital economic role and has been situated on the center stage of the global economic and political scene. While the market was once dominated by American and British firms, and later Japanese corporations, Korean and Chinese companies have now aggressively entered the market and have posed serious challenges to entrenched multinational corporations. The Saudi market has newly become an arena for unbridled competition. As companies must adapt and embark on creative means to sustain their positions in dynamic markets, multinational corporations must also find a comprehensive approach to dealing with cultural and political developments. Having a competitive edge demands familiarity with market nuances and peculiarities in addition to providing quality product and service. Business and Management Environment in Saudi Arabia is not primarily about how to conduct business in the region, but rather it provides insightful information to optimally guide western managers in conducting their operations in Saudi Arabia. The book offers essential information to engage effectively, manage business activities, resolve cultural understandings, and tackle appropriate issues of group dynamics, human resource management, managing change, and development and relations with the government and the general public. As such, it is required reading for both business leaders and academics alike.

Understand the economic, cultural, and enterprise issues facing the Arab countries of the Middle East!Jordan is playing a vital role in the economic and political transformation of the Middle East, but little research has been done on its business climate. Management and International Business Issues in Jordan fills that gap. This groundbreaking volume spans the social, cultural, economic, and enterprise issues facing Jordan, as seen by Arab managers, academics, finance professionals, and business leaders. Many experts believe that Jordan has the potential to become another Singapore. Management and International Business Issues in Jordan suggests ways your company can be among the first to establish profitable business enterprises in this strategically placed nation. It analyzes corporate culture and the best tactics for consolidating your firm’s economic position.Management and International Business Issues in Jordan provides empirical research and pragmatic advice on how to make your business in Jordan a success, including: reducing high transaction costs working with, not against, the prevailing corporate culture understanding why multinational corporations should choose a joint venture strategy as the most effective way to establish a presence encouraging the growth of business and the involvement of entrepreneurs improving the local infrastructure to attract international investment responding positively to the challenges of reform and internationalization understanding the complex historical factors that still influence Jordan’s economy recognizing the sources of job satisfaction in traditional Arab corporate cultureWhether your business is based in Jordan or you are planning to expand to that market, Management and International Business Issues in Jordan provides the information you need to make your venture a success.

This book presents the HRM scenario in a number of countries in the Middle East, highlighting the growth of the personnel/HR function, the dominant HRM system(s) in the area and the challenges faced.