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A Research Note on Multinationality and Firm Performance: Nonparametric Frontier Analysis

Grant, Kevin, Matousek, Roman, Meyer, Martin S., Tzeremes, Nickolaos (2017) A Research Note on Multinationality and Firm Performance: Nonparametric Frontier Analysis. International Journal of Operations & Production Management, 37 (10). pp. 1408-1424. ISSN 0144-3577. (doi:10.1108/IJOPM-04-2015-0229)

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http://dx.doi.org/10.1108/IJOPM-04-2015-0229

Abstract

This study provides a fresh insight into the examination of the comparison between multinationality and firm performance, measured through technical efficiency levels by overcoming methodological constraints and misunderstandings presented in earlier research. We estimate firms’ efficiency levels in a production function-type framework through technical efficiency levels using nonparametric data envelopment analysis (DEA). We include firms from both developed and developing economies, from different national origins and with different sectoral characteristics, with a particular focus on knowledge-intensive business services (KIBS) and capital-intensive business services (CIBS). The study confirms for the case of KIBS the existence of the three-stage sigmoid (S-shaped) hypothesis between multinationality and firm performance measured through technical efficiency levels. Finally, the empirical findings reveal that CIBS exhibit only the first two stages, thus forming a ‘U’-shape relationship. We propose the application of different firms’ performance measurements, providing us with the ability to unpack a firms’ managerial decision processes with regards to determining the optimised investment(s) in technology and research and development and with a particular focus on knowledge-intensive business services (KIBS) and capital-intensive business services (CIBS).

Item Type: Article
DOI/Identification number: 10.1108/IJOPM-04-2015-0229
Uncontrolled keywords: management, data envelopment analysis (DEA), firm, performance, multinationality
Subjects: H Social Sciences > HG Finance
Divisions: Faculties > Social Sciences > Kent Business School > Accounting and Finance
Depositing User: Roman Matousek
Date Deposited: 28 Feb 2017 08:33 UTC
Last Modified: 12 Jul 2019 14:58 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/60579 (The current URI for this page, for reference purposes)
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