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Author:Allen, L.
Pantzalis, C.
Title:Valuation of the operating flexibility of multinational corporations
Journal:Journal of International Business Studies
1996 : FOURTH QUARTER, VOL. 27:4, p. 633-654
Index terms:VALUATION
FLEXIBILITY
MULTINATIONAL COMPANIES
Language:eng
Abstract:The returns to multinationality are estimated as the value of "operating flexibility". Empirical measures of the return to multinationality require a precise specification of the extensiveness of the MNC's transnational network to measure the degree of multinationality. This precise, empirically grounded definition of multinationality has been absent from the academic literature to date. The authors address this omission and find that two characteristics of the transnational network, its Breadth and Depth are significant in explaining the value of operating flexibility.
SCIMA record nr: 159392
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