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Aspects of Measuring Firm-Level Multinationality

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  • Patrik Vanek

    (Department of Economics, Faculty of Business and Economics, Mendel University in Brno, Zemedelska 1, 613 00 Brno, Czech Republic)

Abstract

This paper explores the ambiguity of the methods of measuring firm-level multinationality. The focus is on identifying the main criteria for evaluating the quality of methods for measuring the multinationality of multinational enterprises (MNEs), as it is practical to map the discrepancies and differences. The evaluation is structured to highlight the advantages and limitations of methods proposed by other authors in the international business (IB) literature. The main finding is the recognition of seven key aspects in measuring firm-level multinationality defined as follows: (1) aggregation, (2) complexity, (3) indicators, (4) geography, (5) robustness, (6) country effects, and (7) flexibility. The proposed list can serve as grounds for selecting which methods to use for research, evaluation of the quality of proposed methods, and development of an entirely new method of measuring firm-level multinationality. The main contribution of this paper is its proposal of an optimal approach to each of the seven aspects.

Suggested Citation

  • Patrik Vanek, 2022. "Aspects of Measuring Firm-Level Multinationality," MENDELU Working Papers in Business and Economics 2022-83, Mendel University in Brno, Faculty of Business and Economics.
    • Handle: RePEc:men:wpaper:83_2022
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    References listed on IDEAS

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    More about this item

    Keywords

    MNE; multinationality classification; firm internationalisation; measurement;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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