Authors: O. Bulkot, ORCID ID 0000000263111459, PhD in Economics, Associate Professor, Department of International Economics and Marketing, Taras Shevchenko National University of Kyiv, Kyiv, Ukraine
Abstract: The article is devoted to the problem of estimating the level of companies’ trasnationality. The existing approaches to the measurement of trasnationality are generalized. A methodology is developed for measuring the depth of company’s transnationality in operational and geographic dimensions. It is proposed to define the trasnationality as a function of the extent to which a firm’s activities are located abroad and focuses on the intensity of foreign activities in relation to domestic or global activities. The quantitative indicators of the level of company’s transnationality are estimated. The results of the research prove that in order to measure the level of companies’ transnationality, it is necessary to use an integrated approach that allows estimating the depth, breadth, intensity, and level of their operations and activities on a global scale. In this dimension, it is important not only to assess the level of integration of TNC operations carried out in host and home markets but also to implement special mathematical methods that allow demonstrating the correlation between the main dependent variables of the TNCs’ performance. Empirical studies prove the ease and fairness of the proposed methodology for comparing differences in their structure and specifics TNCs. From this point of view, it is quite correct to carry out an analysis of selected parameters, both non-financial MNCs and financial ones, in which the results of the analysis obtained will be absolutely comparable and fair for their comparison among themselves.
Key words: transnational company, estimation of transnationalization, Transnationality Index, Internalization Index, Network Spread Index, Geographic Spread Index
1st Revision: 10/03/19
Letto-Gillies, G. Seccombe-Hett, Tannis., 1997. What Do Internationalization Indices Measure? Center for International Business Studies. Research papers in international business, Issue 6-97. Retrieved from http://bus.lsbu.ac.uk/cibs/sites/bus.lsbu.ac.uk.bus.cibs/files/6-97.pdf
Ramsey, J.R., Barakat, Livia L. and Cretoiu, Sherban L., 2012. Internationalization and its possible impact on subjective and objec- tive performance: Evidence from Brazilian TNCs. Transnational corporations, Volume 21(number 2). United Nations New York and Geneva. Retrieved from http://unctad.org/en/PublicationsLibrary/diaeia2013d1_en.pdf
Geringer, J.M., Beamish, P.W. and Dacosta, R.C., 1989. Diversification Strategy and Internalization: Implications for MNE Perfor- mance. Strategic Management Journal, Volume 10. Retrieved from http://dx.doi.org/10.1002/smj.4250100202
Ietto-Gillies, G., 1998. Different Conceptual Frameworks for the Assessment of the Degree of Internationalisation: an Empirical Anal- ysis of Various Indices for the top 100 Transnational Corporations. Transnational corporations, Volume 7 (number 1). United Nations Pub- lishing. Retrieved from https://unctad.org/en/Docs/iteiit9v7n1_en.pdf
Ietto-Gillies, G., 2009. Conceptual issues behind the assessment of the degree of internationalization. Transnational Corpora- tions, Volume 18 (number 3). United Nations Publishing. Retrieved from https://unctad.org/en/Docs/diaeiia200912_en.pdf.
Sullivan, D.,1994. Measuring the Degree of Internationalization of a Firm. Journal of International Business Studies. Volume 25(2).
UNCTAD, 1995. World Investment Report 1995.Transnational Corporations and Competitiveness. New York and Geneva, United Nations Publishing. Retrieved from https://unctad.org/en/Docs/wir1995_en.pdf
Kuchinka, P., 2004. Levels of corporate globalization: developing a measurement scale for global customer management. Basing- stoke, UK, Palgrave Macmillan.
UNCTAD, 2009. Training Manual on Statistics for FDI and the Operations of TNCs. Volume II Statistics on the Operations of Trans- national Corporations. New York and Geneva, United Nations Publications. Retrieved from https://unctad.org/en/Docs/diaeia20092_en.pdf
UNCTAD, 2007. The Universe of the Largest Transnational Corporations. New York and Geneva, United Nations Publications. Re- trieved from http://unctad.org/en/Docs/iteiia20072_en.pdf
United Nations, 2002. Manual on Statistics of International Trade in Service. Statistical Papers Series M no. 86, New York, United Nations Publications. Retrieved from http://www.oecd.org/sdd/its/2404428.pdf
United Nations, 2010. Manual on Statistics of International Trade in Service 2010. New York, United Nations Publications. Retrieved from https://unstats.un.org/unsd/publication/seriesm/seriesm_86rev1e.pdf
Folfas, P., 2009. Intra-Firm Trade and non-Trade Intercompany Transactions: Changes in Volume and Structure During 1990–2007. Warsaw, Warsaw School of Economics, Institute of International Economics. Retrieved from http://www.etsg.org/ETSG2009/papers/folfas.pdf
UNCTAD, 1998. World Investment Report 1998. Trends and Determinants. New York and Geneva, United Nations Publishing. Re- trieved from https://unctad.org/en/Docs/wir1998_en.pdf
Vernon, R., 1979. The Product Cycle Hypothesis in a New International Environment. Oxford Bulletin of Economics and Statis- tics. Volume 41, issue 4. Retrieved fromhttps://pdfs.semanticscholar.org/1b25/2b3a40c639bf00413d7e91e988f0b0e5f30c.pdf
Cowling, K. and Sugden, R., 1987. Market Exchange and the Concept of a Transnational Corporation: Analysing the Nature of the Firm. British Review of Economic. Issues, 9, 20: 57-68.
UNCTAD, 2004. World Investment Report 2004. The Shift Towards Services. New York and Geneva, United Nations Publishing. Retrieved from https://unctad.org/en/docs/wir2004_en.pdf
UNCTAD, 2007. World Investment Report 2007. Transnational Corporations, Extractive Industries and Development. New York and Geneva, United Nations Publishing. Retrieved from https://unctad.org/en/Docs/wir2007_en.pdf
UNCTAD, 2008. World Investment Report 2007. Transnational Corporations and the Infrastructure Challenge. New York and Ge- neva, United Nations Publishing. Retrieved from https://unctad.org/en/docs/wir2008_en.pdf
UNCTAD, 2017. World Investment Report 2007. Investment and the Digital Economy. New York and Geneva, United Nations Pub- lishing. Retrieved from https://unctad.org/en/PublicationsLibrary/wir2017_en.pdf