Evaluation of the performance and implications of multinationals: a framework of issues

Pearce, R. D. and Tang, Y. (2021) Evaluation of the performance and implications of multinationals: a framework of issues. Critical Perspectives on International Business, 17 (1). pp. 9-32. ISSN 1742-2043 doi: 10.1108/cpoib-10-2019-0087

Abstract/Summary

Purpose The purpose of this paper is to evaluate multinational enterprises’ (MNEs) performance and impact in contexts beyond their own internal objectives. Design/methodology/approach Based on an “eclectic” paradigm and the range of motivations, the framework is designed around three layers of evaluation: “efficiency” as static optimisation, “growth and development” as the dynamics of change on a purely economic view; political/economic sphere in terms of the outcomes of “distribution”, and “sovereignty” on the more purely political concern of how MNEs may undermine countries’ policy independence. Findings MNE and national economies have to use current sources of competitiveness efficiently while addressing the necessity to reinforce and refocus them through time. Within these broad agendas, significant interactions and outcomes reflect a range of contingencies conditioned by both MNE objectives and hosts’ competitive status. Originality/value The paper concerns economics and MNE role in globalisation. The paper defines a framework of four generic evaluative issues of MNE performance, which subsume a wider range of important but more niche concerns.