Why Does MNE Performance Vary Across Countries? An Inquiry into the Competitive Value of MNE Assets

44 Pages Posted: 22 Aug 2015 Last revised: 19 Jul 2017

See all articles by Lilac Nachum

Lilac Nachum

City University of New York - Allen G. Aaronson Department of Marketing & International Business

Marina Carnevale

City University of New York - CUNY Baruch College - Zicklin School of Business

Helaine Korn

City University of New York - Narendra Paul Loomba Department of Management

Date Written: August 20, 2015

Abstract

Variations in MNEs’ competitive positions across countries are prevalent phenomena in the business landscape, but are not fully explained by MNE theory. Building on competition theories and applying them to the context of the MNE, we hypothesize that the value of MNEs’ assets varies in relation to competitors of different nationalities and varying geographic scope, and 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 that are particularly strong for competitors’ location. These variations suggest that the value of MNE assets is relative, and their varying competitive positions across countries is an inherent feature of international competition, calling for corresponding positioning and strategies.

Keywords: MNE competitive advantage theory, legal services, MNE assets, competition theory

Suggested Citation

Nachum, Lilac and Carnevale, Marina and Korn, Helaine, Why Does MNE Performance Vary Across Countries? An Inquiry into the Competitive Value of MNE Assets (August 20, 2015). Available at SSRN: https://ssrn.com/abstract=2648465 or http://dx.doi.org/10.2139/ssrn.2648465

Lilac Nachum (Contact Author)

City University of New York - Allen G. Aaronson Department of Marketing & International Business ( email )

One Bernard Baruch Way, B12-240
New York, NY 10010-5585
United States

Marina Carnevale

City University of New York - CUNY Baruch College - Zicklin School of Business ( email )

55 Lexington Ave., Box B13-260
New York, NY 10010
United States

Helaine Korn

City University of New York - Narendra Paul Loomba Department of Management ( email )

NY
United States

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