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A research note on multinationality and firm performance: nonparametric frontier analysis

Grant, Kevin; Matousek, Roman; Meyer, Martin; Tzeremes, Nickolaos G.

Authors

Kevin Grant

Roman Matousek

Martin Meyer

Nickolaos G. Tzeremes



Abstract

Purpose

The purpose of this paper is to provide 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.

Design/methodology/approach

The authors estimate firms’ efficiency levels in a production function-type framework through technical efficiency levels using nonparametric data envelopment analysis. The authors 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).

Findings

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.

Originality/value

The authors 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 KIBS and CIBS.

Journal Article Type Article
Publication Date Oct 31, 2017
Journal International Journal of Operations & Production Management
Electronic ISSN 0144-3577
Publisher Emerald
Peer Reviewed Peer Reviewed
Volume 37
Issue 10
APA6 Citation Grant, K., Matousek, R., Meyer, M., & Tzeremes, N. G. (2017). A research note on multinationality and firm performance: nonparametric frontier analysis. International Journal of Operations and Production Management, 37(10), doi:10.1108/IJOPM-04-2015-0229
DOI https://doi.org/10.1108/IJOPM-04-2015-0229
Keywords Management; DEA; Firm; Performance; Multinationality
Publisher URL https://doi.org/10.1108/IJOPM-04-2015-0229
Copyright Statement Copyright information regarding this work can be found at the following address: http://eprints.nottingh.../end_user_agreement.pdf
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Copyright Statement
Copyright information regarding this work can be found at the following address: http://eprints.nottingham.ac.uk/end_user_agreement.pdf





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