Research on the Path of Total Factor Productivity Improvement in Multinational Enterprises: Based on fsQCA Methodology and TOE Framework

Abstract

Promoting the improvement of Total Factor Productivity (TFP) in multinational enterprises (MNEs) is a crucial practical concern in light of global resource mobility. In this study, based on a sample of Chinese listed multinational enterprises in 2021, the multifaceted paths of MNEs to improve total factor productivity are explained based on the theoretical framework of TOE and empirically examined using the fsQCA method. This study finds that, on the one hand, MNEs can achieve high TFP through the technology-environment path, where innovation performance and government subsidies play a central role. On the other hand, MNEs can achieve development through the synergistic path of “technology-organization-environment”, in which innovation performance, firm size, and government subsidies are the key elements. This study elucidates the impact of technology, organizational structure, and environmental factors on the total factor productivity improvement of multinational enterprises. Practical insights are provided for optimizing the operations and management of MNEs.