Aspects of Measuring Firm-Level Multinationality

Patrik Vaněk

No 2022-83, MENDELU Working Papers in Business and Economics from Mendel University in Brno, Faculty of Business and Economics

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.

Keywords: MNE; multinationality classification; firm internationalisation; measurement (search for similar items in EconPapers)
JEL-codes: F23 L25 (search for similar items in EconPapers)
Pages: 31
Date: 2022-09
New Economics Papers: this item is included in nep-ind and nep-int
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