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1. Increased Susceptibility to the Risk Management Perception due to Lack of Understanding of Sharia (Islamic Law): Communication is an important aspect of business operations in a company, especially when the company operates in a foreign country. Understanding of business laws in the foreign country is the principle factor towards the development of confidence and market penetration. Failure to understand Sharia Laws regarding business operations might increase the MNCs susceptibility to risk management in Arab contexts. As search, respondents who were working for different were asked to estimate the level of susceptibility to the risk management perception based on their understanding of Islamic Laws. The average responses per company were tabulated as shown in the table. Table 1 : Average susceptibility rate to risk management perception due to lack of understanding of Sharia (Islamic Law). Company Size Susceptibility Rate (%) Large Companies: Company 1 48 Company 2 54 Company 3 56 Company 4 53 Company 5 49 Company 6 48 Company 7 52 Medium Size Companies: Company 1 56 Company 2 59 Company 3 66 Company 4 46 Small Company: Company 1 60 Company 2 62 Company 3 75 Company 4 62
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The above raw data was analyzed using one-Way ANOVA in the SPSS to determine the significant level of susceptibility to risk management perceptions among Chinese companies operating in Saudi Arabia due to lack of understanding of Sharia. The Analysis were presented in the ANOVA table below Table 2 : one-way ANOVA analysis to determine the significant level of susceptibility rate to risk management perceptions due to lack of understanding Sharia Laws by Chinese MNCs Descriptives Susceptibility Rate N Mean Std. Deviation Std. Error 95% Confidence Interval for Mean Minimum Maximum Lower Bound Upper Bound Large Company 7 51.4286 3.15474 1.19238 48.5109 54.3462 48.00 56.00 Medium Sized Company 4 56.7500 8.30161 4.15080 43.5403 69.9597 46.00 66.00 Small Size Company 4 64.7500 6.89807 3.44903 53.7736 75.7264 60.00 75.00 Total 15 56.4000 7.84493 2.02555 52.0556 60.7444 46.00 75.00 ANOVA Susceptibility Rate Sum of Squares df Mean Square F Sig. Between Groups 452.386 2 226.193 6.633 .011 Within Groups 409.214 12 34.101 Total 861.600 14 The average susceptibility rate to risk management perceptions due to lack of understanding Sharia of large companies is 51.4286%, medium companies is 56.75% and small sized companies is 56.40%. On the other hand, the significant level of susceptibility from the above analysis (0.011) is smaller the p-value (0.05), showing highly significant study results. Therefore, it can deduced from the results that lack of understanding of the Islamic law is among
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the significant factors leading to the susceptibility to risk management perceptions among the Chinese MNCs 2. How significant would relationships affect company operations in the Saudi Arabian Market? This question was formulated to explore the influence of good relations to business operations among the Chinese MNCs operating in the Saudi Arabian market. The manner in which the respondents from MNCs companies in terms of how they associated their relationships with the Saudi people to the performance (operations) of their business in the Saudi Arabia was recorded and the raw data tabulated as shown below.
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