Quantitative Methods of Estimation of the Degree of Company’s Transnationality

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

Received: 08/02/2019

1st Revision: 10/03/19

Accepted: 20/03/2019

DOI: https://doi.org/10.17721/1728-2667.2019/204-3/2

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