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Why does MNE performance vary across countries?

Author

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  • Carnevale, Marina
  • Nachum, Lilac
  • Korn, Helaine

Abstract

Variations in MNEs’ competitive positions across countries are a prevalent phenomenon in the business landscape, but are not fully explained by MNE theory. Building on competition theories and applying them to the context of MNEs, we hypothesize that the value of MNEs’ assets varies in relation to competitors of different nationalities and geographic scope, as well as across locations. These predictions are tested on US legal-services MNEs in competition with US domestic firms and non-US MNEs in the US and abroad. We find support for the hypothesized variations, particularly with reference to competitors’ location and nationality. These variations suggest that the value of MNE assets is relative, and that their varying market positions across countries are an inherent feature of international competition, calling for corresponding positioning and strategies.

Suggested Citation

  • Carnevale, Marina & Nachum, Lilac & Korn, Helaine, 2017. "Why does MNE performance vary across countries?," International Business Review, Elsevier, vol. 26(6), pages 1196-1207.
    • Handle: RePEc:eee:iburev:v:26:y:2017:i:6:p:1196-1207
    DOI: 10.1016/j.ibusrev.2017.05.004
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