Academic journal article International Journal of Marketing Studies

The Influence of Political-Legal Forces on Jordanian Industrial Exports in the Private Sector

Academic journal article International Journal of Marketing Studies

The Influence of Political-Legal Forces on Jordanian Industrial Exports in the Private Sector

Article excerpt


This study aims to measure the Influence of Political-Legal forces, which both are elements in the marketing external environment, on Jordanian exporting performance. The researchers employed the experimental approach in conducting the study and the applications of this approach including statistical analysis of data collected for the field study. The population of the sample comprises marketing managers in Jordanian exporting companies. Questionnaires were distributed over a convenience sample that amounted to (50) respondents. The researchers found that political and legal factors hold an effect on the Jordanian exporting performance. The effect of political and legal factors on the Jordanian exporting performance does not vary according to the marketing manager's educational level and marketing manager's working experience. The study suggests that the concluded pyramid to be treated as a point of reference to Jordanian decision makers when attempting to encounter or avoid the threats posed by political and legal factors on the exporting performance.

Keywords: political and legal factors, political risk, Jordanian exports

1. Introduction

Firms that operate internationally must take into count the political-legal aspects as their strategies must undergo changes accordingly. Companies must also equip resources towards anticipating forthcoming political changes and in turn assess the political risk that may influence foreign activities (De Mortanges & Allers, 1996; Fredrikson & Svensson, 2002; Keim & Hillman, 2008; Ye et al., 2011).

Today, companies encounter a number of changes and determinants that directly influence performance and in turn survival. Thus, businesses are expected to adapt strategies in a manner that enable them to adapt and grow. In this regard, Philip Kotler and Kevi Keller (2012) shed lights on the importance of taking into count the aspects and changes in the business environment on one hand and examining the modes of responding to such changes on the other; these considerations, adds Kotler, hold a huge impact on continuity and progress (Kotler & Keller, 2012).

In this regard, this study grants a detailed focus on the impact of political-legal factors on Jordanian exports in an attempt to land at a theoretical structure that functions as a reference to Jordanian managers in exporting firms. The study begins with presenting a literature review on the political and legal forces, and the main acknowledgements on the impact such factors hold on businesses as a whole. The study then extracts a questionnaire from the written literature in order to arrive at a customized construction in a manner that responds to the subjectivity of the Jordanian case. The study subsequently concludes a pyramid that embodies the major elements that constitute the political and legal environment as they are listed from the most to the least influential in regards to the Jordanian exports.

1.1 Significance of the Study

The Jordanian economy represents an ideal showcase for a modest nonetheless open economy due to its strong ties with regional and international spectrum. The economy in Jordan is known for two main features: the scarcity of natural resources and the undersized economy. However, in addition to the major dependence on the mining industry in production and exporting such as phosphate, potassium and fertilizers, the country is also famous for a high activation to the service sector-including retail, financial, transportation, education, health, and tourism services-as this sector enjoys an evident contribution to the Gross Domestic Product (GDP). From an economic perspective, the reason behind the undersized economy in the country is that Jordan is a mere receiver to price in relation external economic ties and in turn to imports and exports. In light of the aforementioned features, the formulation of regional and internal commerce relations is inevitable in order to sustain and develop the Jordanian economy. …

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