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

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. Desig...

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Main Authors: Grant, Kevin, Matousek, Roman, Meyer, Martin, Tzeremes, Nickolaos G.
Format: Article
Published: Emerald 2017
Subjects:
Online Access:https://eprints.nottingham.ac.uk/51624/
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author Grant, Kevin
Matousek, Roman
Meyer, Martin
Tzeremes, Nickolaos G.
author_facet Grant, Kevin
Matousek, Roman
Meyer, Martin
Tzeremes, Nickolaos G.
author_sort Grant, Kevin
building Nottingham Research Data Repository
collection Online Access
description 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.
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spelling nottingham-516242020-05-04T19:14:39Z https://eprints.nottingham.ac.uk/51624/ A research note on multinationality and firm performance: nonparametric frontier analysis Grant, Kevin Matousek, Roman Meyer, Martin Tzeremes, Nickolaos G. 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. Emerald 2017-10-31 Article PeerReviewed Grant, Kevin, Matousek, Roman, Meyer, Martin and Tzeremes, Nickolaos G. (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 Management; DEA; Firm; Performance; Multinationality https://doi.org/10.1108/IJOPM-04-2015-0229 doi:10.1108/IJOPM-04-2015-0229 doi:10.1108/IJOPM-04-2015-0229
spellingShingle Management; DEA; Firm; Performance; Multinationality
Grant, Kevin
Matousek, Roman
Meyer, Martin
Tzeremes, Nickolaos G.
A research note on multinationality and firm performance: nonparametric frontier analysis
title A research note on multinationality and firm performance: nonparametric frontier analysis
title_full A research note on multinationality and firm performance: nonparametric frontier analysis
title_fullStr A research note on multinationality and firm performance: nonparametric frontier analysis
title_full_unstemmed A research note on multinationality and firm performance: nonparametric frontier analysis
title_short A research note on multinationality and firm performance: nonparametric frontier analysis
title_sort research note on multinationality and firm performance: nonparametric frontier analysis
topic Management; DEA; Firm; Performance; Multinationality
url https://eprints.nottingham.ac.uk/51624/
https://eprints.nottingham.ac.uk/51624/
https://eprints.nottingham.ac.uk/51624/