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The Hassle Factor

Welcome to the Hassle Factor site. 

 

ABOUT THIS RESEARCH: A QUICK INTRODUCTION


Utilizing a multi-method research design, we developed an 11-item measure composed of travel inconveniences that have a significant negative effect on the relationship between foreign investment potential and realized investment. We call this phenomenon the “Hassle Factor.” The research supporting the Hassle Factor was originally published in The Journal of International Business Studies in 2013.

We have since expanded the measure by increasing the number of countries from 131 to 180. We have also added ten years worth of data in five data sets. These data sets measure each of the 11 indicators in two-year increments. 

Interactive Hassle Factor World Map (click on countries)

2018 2016 2014 2012 2010 2008
LOW HASSLE
MED-LOW HASSLE
MED HASSLE
MED-HIGH HASSLE
HIGH HASSLE
Lowest Hassle Factor Countries Highest Hassle Factor Countries

The Hassle Factors (Rank ordered High to Low)

 

Why do businesses avoid certain countries? In part, it's... the Hassle Factor

Research shows travel inconveniences affect a company's foreign location choices. The prevalent assumption in business research and practice is that multinational enterprises choose their foreign locations based on purely macroeconomic or market factors and not managerial preferences. This assumption is far from reality.

We conducted many interviews with executives about factors that influence their firms’ foreign location decisions. We found that these decisions are not detached from microfoundational managerial preferences and are instead often based on how troublesome it is for managers to travel to or live in certain places. The consequence is that even the most reputable multinationals frequently end up with a location mix that is suboptimal for their future global growth.

The Journal of International Business Studies published the full research study in 2013: 
Schotter, A., & Beamish, P. W. (2013). The hassle factor: An explanation for managerial location shunning. Journal of International Business Studies, 44(5), 521-544.

 

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