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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.
Highlights
Against the backdrop of growing economic globalization, multinational enterprises (MNEs) have become a vital factor in enhancing the high-quality development of the global economy
This study analyzes the driving paths of MNEs’ total factor productivity improvement through Fuzzy set qualitative comparative analysis (fsQCA) and comes to the following conclusions: On the one hand, MNEs can achieve growth and development through technology-environment driving paths, where technology is mainly reflected in the output of patents and environmental factors are mainly reflected in government subsidies
MNEs can achieve growth through the technology-organization-environment synergistic driving path. This path is a rational interpretation of the TOE framework and a realistic way to comprehensively enhance the development capability of enterprises
Summary
Against the backdrop of growing economic globalization, multinational enterprises (MNEs) have become a vital factor in enhancing the high-quality development of the global economy. Ramachandran and Pant (2010) argued that emerging economies typically have imperfect market mechanisms, weak intellectual property protection, and other institutional deficiencies compared to developed countries These shortcomings make it challenging for enterprises in emerging economies to develop the technical or managerial capabilities necessary to satisfy the demands of international expansion. This study conducts a group path analysis using theoretical and empirical models, which enriches our comprehension of total factor productivity enhancement in multinational enterprises. It furnishes practical guidance for enterprises to optimize their operation and management and advance total factor productivity. Environmental factors typically stem from exogenous shocks or external drivers that impact the enterprise’s external conditions and subsequent behavior
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