The ambiguity and limitations of measuring firm-level multinationality: a theoretical and empirical exploration
ISSN: 1525-383X
Article publication date: 17 August 2023
Issue publication date: 18 April 2024
Abstract
Purpose
This paper aims to explore the ambiguity and limitations of measuring firm-level multinationality (FLM) using theoretical and empirical comparisons of existing methods. The paper puts forward a list of five key aspects that collectively serve as a tool for researchers to select the most appropriate method for future research and as a basis for the future development of methods.
Design/methodology/approach
Firstly, the author reviews existing methods of measuring FLM and consolidates findings into five key aspects. Secondly, the author uses the aspects to compare existing methods theoretically, and subsequently, the author groups them into three distinct streams. Thirdly, the author compares existing methods across a sample of the 35 largest European MNEs by sales in 2020 to identify and demonstrate the ambiguity and limitations of these methods.
Findings
The author identifies the five key aspects of measuring FLM: framework, aggregation, segmentation, metrics and indicators. Using empirical comparison, the author empirically confirms the limitations highlighted in the literature and shows the differences and inconsistencies among methods, which cause confusion rather than clarity in the extant literature. Additionally, the author emphasises that three distinct streams further drive the debate on the regional/global nature and present further limitations of methods not mentioned in the literature to date.
Originality/value
This paper provides the most comprehensive review of the existing literature on FLM, resulting in five novel aspects of measuring FLM. The analysis of a sample of 35 European firms demonstrates and identifies the ambiguity and limitations of FLM-measuring methods.
Keywords
Acknowledgements
This paper benefits from valuable comments from the author’s colleagues at Department of Economics, helpful feedback from Eleanor Doyle (University College Cork, Ireland), comments and suggestions from the MBR reviewers and enriching thoughts gained at multiple conferences. Earlier versions of the paper were presented at ECOS 2022 (Mendel University in Brno, Czechia), Scientia Iuventa 2022 (Matej Bel University, Slovakia), Economic Policy 2022 (PRIGO University, Czechia), AIB-CEE Chapter 2022 (University of Zagreb, Croatia) and EIBA 2022 (BI Norwegian Business School, Norway). This paper was supported by the Internal Grant Schemes of Mendel University in Brno, registration no.: CZ.02.2.69/0.0/0.0/19_073/0016670, funded by the ESF.
Citation
Vaněk, P. (2024), "The ambiguity and limitations of measuring firm-level multinationality: a theoretical and empirical exploration", Multinational Business Review, Vol. 32 No. 1, pp. 137-158. https://doi.org/10.1108/MBR-09-2022-0137
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited