An ‘eclectic’ investigation of tourism multinationals’ activities: Evidence from the Hotels and Hospitality Sector in Greece
AbstractThis paper analyses determinants of profitability differences between subsidiaries of Multinational Enterprises (MNEs) and Domestic Enterprises (DMEs) in the hotel and hospitality industry using firm level data. Previous studies have tested the hypothesis that ownership-specific advantages are a major determinant of performance differences. This paper explores performance issues using the eclectic paradigm configuration of hotel and hospitality multinationals (NACE=55), operating in Greece and a panel dataset for 95 firms and 10 years. The model is estimated using quantile regression model. The results indicate that overall MNEs overperform their domestic competitors and are generally larger in terms of size. An interesting aspect is revealed though when we break our MNEs to majority and minority owned. Minority owned MNEs perform better as they make use of local partners who bring into the firm knowledge of the local market, an aspect important for an industry as Hotels and Hospitality.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Hellenic Observatory, LSE in its series GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe with number 08.
Date of creation: Nov 2007
Date of revision:
Contact details of provider:
Postal: Houghton Street, London WC2A 2AE
Phone: +44 (020) 7405 7686
Web page: http://www.lse.ac.uk/europeanInstitute/research/hellenicObservatory/
More information through EDIRC
Greece; Tourism and Hospitality; Multinational Enterprise Subsidiaries (MNES); Performance.;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joel L. Horowitz, 1998.
"Bootstrap Methods for Median Regression Models,"
Econometric Society, vol. 66(6), pages 1327-1352, November.
- Vasilios Patsouratis & Zoe Frangouli & George Anastasopoulos, 2005. "Competition in tourism among the Mediterranean countries," Applied Economics, Taylor & Francis Journals, vol. 37(16), pages 1865-1870.
- Stephen Guisinger, 2001. "From OLI to OLMA: Incorporating Higher Levels of Environmental and Structural Complexity into the Eclectic Paradigm," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(2), pages 257-272.
- Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
- Siddharthan, N S & Lall, Sanjaya, 1982. "The Recent Growth of the Largest U.S. Multinationals," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 44(1), pages 1-13, February.
- Chhibber, Pradeep K & Majumdar, Sumit K, 1999. "Foreign Ownership and Profitability: Property Rights, Control, and the Performance of Firms in Indian Industry," Journal of Law and Economics, University of Chicago Press, vol. 42(1), pages 209-38, April.
- Chen, Jean Jinghan & Dimou, Irini, 2005. "Expansion strategy of international hotel firms," Journal of Business Research, Elsevier, vol. 58(12), pages 1730-1740, December.
- William Gould, 1993. "Quantile regression with bootstrapped standard errors," Stata Technical Bulletin, StataCorp LP, vol. 2(9).
- Roger Koenker & Kevin F. Hallock, 2001.
Journal of Economic Perspectives,
American Economic Association, vol. 15(4), pages 143-156, Fall.
- John Cantwell & Franceses Sanna-Randaccio, 1993. "Multinationality and firm growth," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 129(2), pages 275-299, June.
- Robert M Grant, 1987. "Multinationality and Performance among British Manufacturing Companies," Journal of International Business Studies, Palgrave Macmillan, vol. 18(3), pages 79-89, September.
- John Dunning, 2001. "The Eclectic (OLI) Paradigm of International Production: Past, Present and Future," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(2), pages 173-190.
- Barbosa, Natalia & Louri, Helen, 2002. "On the determinants of multinationals' ownership preferences: evidence from Greece and Portugal," International Journal of Industrial Organization, Elsevier, vol. 20(4), pages 493-515, April.
- Sophia Dimelis & Helen Louri, 2002. "Foreign ownership and production efficiency: a quantile regression analysis," Oxford Economic Papers, Oxford University Press, vol. 54(3), pages 449-469, July.
- George Pagoulatos & Nikolaos Zahariadis, 2011. "Politics, Labor, Regulation, and Performance: lessons from the privatization of OTE," GreeSE â Hellenic Observatory Papers on Greece and Southeast Europe 46, Hellenic Observatory, LSE.
- Christos Lyrintzis, 2011. "Greek Politics in the Era of Economic Crisis: Reassessing Causes and Effects," GreeSE â Hellenic Observatory Papers on Greece and Southeast Europe 45, Hellenic Observatory, LSE.
- Nicholas Apergis, 2011. "Characteristics of inflation in Greece: Mean Spillover Effects among CPI Components," GreeSE â Hellenic Observatory Papers on Greece and Southeast Europe 43, Hellenic Observatory, LSE.
- Eugenia Markova, 2010. "Effects of Migration on Sending Countries: lessons from Bulgaria," GreeSE â Hellenic Observatory Papers on Greece and Southeast Europe 35, Hellenic Observatory, LSE.
- Stelios Karagiannis & Yannis Panagopoulos & Prodromos Vlamis, 2010. "Symmetric or Asymmetric Interest Rate Adjustments? Evidence from Greece, Bulgaria and Slovenia," GreeSE â Hellenic Observatory Papers on Greece and Southeast Europe 39, Hellenic Observatory, LSE.
- Christos Dimas, 2010. "Privatization in the Name of ‘Europe’: analyzing the telecoms privatization in Greece from a ‘discursive institutionalist’ perspective," GreeSE â Hellenic Observatory Papers on Greece and Southeast Europe 41, Hellenic Observatory, LSE.
- Theodore Pelagidis, 2010. "The Greek Paradox of Falling Competitiveness and Weak Institutions in a High GDP Growth Rate Context (1995-2008)," GreeSE â Hellenic Observatory Papers on Greece and Southeast Europe 38, Hellenic Observatory, LSE.
- Elena Lazarou, 2009. "Mass Media and the Europeanization of Greek- Turkish Relations: discourse transformation in the Greek press 1997-2003," GreeSE â Hellenic Observatory Papers on Greece and Southeast Europe 23, Hellenic Observatory, LSE.
- Vassilis Monastiriotis & Jacob A. Jordaan, 2011. "Regional Distribution and Spatial Impact of FDI in Greece: evidence from firm-level data," GreeSE â Hellenic Observatory Papers on Greece and Southeast Europe 44, Hellenic Observatory, LSE.
- George Kazamias, 2010. "From Pragmatism to Idealism to Failure: Britain in the Cyprus crisis of 1974," GreeSE â Hellenic Observatory Papers on Greece and Southeast Europe 42, Hellenic Observatory, LSE.
- Horen Voskeritsian & Andreas Kornelakis, 2011. "Institutional Change in Greek Industrial Relations in an Era of Fiscal Crisis," GreeSE â Hellenic Observatory Papers on Greece and Southeast Europe 52, Hellenic Observatory, LSE.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vassilis Monastiriotis).
If references are entirely missing, you can add them using this form.