Appendix 4: Interview Questions
1. What is/are the main risk/s facing MNCs when considering investment in Kurdistan region as a post-conflict, autonomous region and its affect MNCs’ mode of entry?
By asking the following interview questions, the author intends to explore the main risks involved in investing in a post conflict region (Kurdistan region) (political, market, legal and cultural risks in particular established in the literature review and how these risks can affect the MNCs’ mode of entry in the region) ( Al-Khouri and Khalik, 2013; Berdal and Malone, 2000; Brown, 2005; Butler and Joaquin, 1998; Collier and Hoeffler, 2000; Fearon and Laitin, 2003; Kehl, 2010; Klein, 2004; Hayakawa et al, 2013; Henisz, 2000; Humphrey’s, 2005; Ismael and Ismael, 2005; Janeba, 2002; Janicki and Wunnava; 2004; Jenson, 2003;
Jenson and Young, 2008; Middle East Monitor, 2008; Olson, 1991; Rangwala and Herring, 2005; Shneider and Fery, 1985)
1.1. What are the driving factors and the barriers facing MNCs when investing in Kurdistan Region?
1.1.1 What are the main driving factors encouraging MNC’s to invest in Kurdistan Region and Iraq (from the FDI point of view)
1.1.1. What factors are barriers affecting MNC’s when considering investing in the region? (MNCs from UK and Turkey)
1.1.2. What are the main risks facing MNCs wishing to invest in the region?
1.1.3. Does Iraq’s overall situation can affect the region’s attractiveness for FDI consideration? (If so, in what way?) (Al-Khouri and Khalik, 2013; Brown, 2005; Ismael and Ismael, 2005; Klein, 2004; Rangwala and Herring, 2005;
)
1.1.4. Does Iraq’s violent history can affect MNCs decision making when considering investing in the region? (Collier and Hoeffler, 2000; Jenson and Young 2008)
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1.1.5. What is the affect of unclear political process of Iraq in general and Kurdistan Region in particular on the level of FDI inflow into the region?
(Collier and Hoeffler, 2000; Kehl, 2010; Klare, 2001)
1.1.6. Do the disputes between KRG and central government (especially over the production of oil and gas) can affect the level of FDI into the region?
(Berdal and Malone, 2000; Fearon and Laitin, 2003; Humphrey’s, 2005, Kehl, 2010)
Mode of Entry (Uppsala theory) (Johanson and Vahlne, 1990)
1.2. What is the reason/s lack of long term foreign investment in Kurdistan region?
1.2.1. Despite the risks involved in investing in the region, why are MNCs entering the region? (Galbraith, 2003; Khalaf and Sieff, 2009)
1.2.2. Do the risks facing MNCs when considering investing in Kurdistan region can affect MNCs’ modes of entry? (If so, in what way?)
1.2.3. Does the Kurdistan market’s condition on its own have the resources to attract foreign investors? (If so, please explain)
1.2.4. Is Kurdistan region’s market treated independently or considered as a part of Iraq (from the foreign investor’s point of view)? (Al-Khouri and Khalik, 2013; Brown, 2005; Ismael and Ismael, 2005; Klein, 2004;
Rangwala and Herring, 2005)
1.2.5. Do MNCs consider Kurdistan as the gateway to the rest of Iraq and base themselves in the Region to familiar themselves with Iraq’s market (to gain knowledge, Uppsala theory,)? (Khalaf and Sieff, 2009; Johanson and Vahlne, 1990)
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2. What factors are considered by the target population to determine the attractiveness of Kurdistan Region’s market for FDI consideration?
The author intended to explore the factor/s considered that shaped their judgments on the Region’s attractiveness for FDI consideration (Behrman, 1968; Douglas and Craig, 2010;
Goodnow and Hansz, 1972; Kaya, 2014; Khan and Akbar, 2013; Lee et al, 2014; Lu et al, 2014; Ojala and Tyrvainen, 2007; Papadopoulos and Jansen, 1994; Tse et al 1997: Welch and Wiedersheim-Pual 1978; Whitelock and Jobber, 2004)
2.1. What factor/s do you consider when evaluating the Kurdistan market’s attractiveness for FDI considerations? (Risks as well as potentials?)
2.2. Do target populations follow a systematic (Aguiar et al, 2012; Craig and Douglas, 2005; Kumar et al, 1994) or rational approach? (Buckley et al, 2007;
Sarasvathy 2001; Zhenge, 2012)
2.2.1. How do you assess the risk situation in the Region for FDI considerations?
2.2.2. Do you have a checklist or a model when considering the Kurdistan and Iraq’s market attractiveness? (If so, explain)
2.2.3. Do you use available databases (such as World Bank) when assessing the region market’s attractiveness for FDI considerations? (If yes, explain)
2.3. Is your market evaluation based on your own personal experiences? (If so, why?)
2.3.1 How was your knowledge about Kurdistan Region’s market condition formed and how has it affected your perception about the region’s market attractiveness for FDI consideration? (Erramilli, 1991; Jobber, 2004; Kuo et al, 2012; Papadipoulos and Martin, 2011; Sakarya et al, 2007; Whitelock and Jobber, 2004)
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3. What is the effect of promotional boards and departments (target population) in those countries (Turkey and the UK) hosting MNCs with the potential to invest in Kurdistan, on facilitating inward investment and representing Kurdistan market’s appeal?
The author asked the following interview questions to explore participants’ roles and their effect on MNCs considering investment in Kurdistan region.
3.1. What is/are your clients’ enquiries related to the Kurdistan market in general?
3.2. What is your advice to your clients (MNCs) enquiring about the Kurdistan market?
3.3. Do you advise your clients (MNCs) about the Region’s market potentials as well as the risks involved in investing in the Region?
3.4. What is your role in presenting the Kurdistan market’s potential to your clients (demotic MNCs)?
3.5. Is your advice on the region’s market attractiveness considered by your clients? (If so in what way?)
At the end of interview, the author asked the participants if there was anything they would like to add that is not mentioned during the interview as a point of concern or interest related to the subject. Furthermore, the author asked the participants about their opinion on what KRG could do to improve the level of FDI into the region.
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-Turkish companies are among the highest number of foreign investors in Kurdistan Region.
-Turkish companies are mainly exporting goods and they are involved in construction contracting but not committed long term investment.
-Turkish companies do not need to commit to long term investment in Kurdistan Region ‘unless Turkish MNC’s have an eye to distribute to the rest of Iraq.
-In the beginning the British government didn’t encourage UK MNCs to do business with Kurdistan Region … because they didn’t want to upset Central Government.
-The reason for British companies’ not entering Kurdistan Region is not the risk factors but it is entirely to do with the price.
-UK MNC’s offer high quality standards product and services at higher prices … Turkish companies is that we (Turkish companies) are neighbours, and ‘we have easy access to the region, cultural similarities and our companies are faced with lower operation and logistics costs’ compared to Europeans companies.
-There are some sectors which British companies can provide where Turkish companies can’t deliver such as advanced architecture design, healthcare and security, and education.
-Iraq and Kurdistan Region carry a high level of political and market risks.
-Kurdistan Region is part of Iraq, the overall image is about Iraq and