The Regional Dimension of UK Multinationals

Abstract

As multinational enterprises (MNEs) expand internationally (for example, as the ratio of foreign (F) to total (T) sales increases), there is a positive effect on firm performance (usually measured by return on total assets (ROTA). We advance this literature in three ways: (i) we focus on the recent performance of UK MNEs, in terms of ROTA, but also in terms of their return on foreign assets (ROFA); (ii) to supplement (F/T), we examine the ratio of European (E) to total (T) sales of these UK MNEs; and (iii) we test the relationship between (E/T) and both ROFA and ROTA, and find a significant non-linear fit.

Citation

Rugman, A.M., Kudina, A. and Yip, G.S. (2007), "The Regional Dimension of UK Multinationals", Rugman, A.M. (Ed.) Regional Aspects of Multinationality and Performance (Research in Global Strategic Management, Vol. 13), Emerald Group Publishing Limited, Leeds, pp. 297-315. https://doi.org/10.1016/S1064-4857(07)13012-6