ROA, ROE, Market Share or Survival: How to Appropriately Measure Subsidiary Performance?

Henrik Gundelach*, Bo Bernhard Nielsen

*Corresponding author for this work

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

Since the early days of International Business (IB) research, there has been ample discussion of the methods of measuring performance variables. Measurement of Subsidiary Performance (SP) is particularly challenging due to data availability, because subsidiaries are often integrated into Multinational Corporations’ (MNCs’) internal reporting structure, or the data may be unfit for research purposes due to such variances as host country regulations, subsidiary capital structure or transfer pricing issues. Notwithstanding these challenges, SP and overall MNC performance remains at the centre of IB research and developing appropriate measures of SP is key to our understanding of important IB phenomena. This study is based on 106 quantitative articles from 2005 to 2018 with SP as the dependent variable. This study’s findings show a high variability of measurements of SP within the broad thematic clusters and between articles concerning similar areas of research. In lieu of recent debates about replication within social science (e.g., Bettis et al., 2016), this is highly problematic. The aim of this paper is to assess the measurement of SP in recent IB literature and propose a range of questions to guide researchers selecting the most appropriate SP measure(s) for their study.
Original languageEnglish
Publication date2019
Number of pages47
Publication statusPublished - 2019
Event45th EIBA Annual Conference 2019: What Now? International Business in a Confused World Order - University of Leeds, Leeds, United Kingdom
Duration: 13 Dec 201915 Dec 2019
Conference number: 45
https://eiba2019.eiba.org/

Conference

Conference45th EIBA Annual Conference 2019
Number45
LocationUniversity of Leeds
CountryUnited Kingdom
CityLeeds
Period13/12/201915/12/2019
Internet address

Bibliographical note

CBS Library does not have access to the material

Keywords

  • Subsidiary performance
  • Performance measurement
  • DuPont model
  • Bibliometric coupling
  • VOSviewer
  • Leximancer

Cite this

Gundelach, H., & Nielsen, B. B. (2019). ROA, ROE, Market Share or Survival: How to Appropriately Measure Subsidiary Performance?. Paper presented at 45th EIBA Annual Conference 2019, Leeds, United Kingdom.
Gundelach, Henrik ; Nielsen, Bo Bernhard. / ROA, ROE, Market Share or Survival : How to Appropriately Measure Subsidiary Performance?. Paper presented at 45th EIBA Annual Conference 2019, Leeds, United Kingdom.47 p.
@conference{a19cb373447c42a3b2a8fc33f12df1db,
title = "ROA, ROE, Market Share or Survival: How to Appropriately Measure Subsidiary Performance?",
abstract = "Since the early days of International Business (IB) research, there has been ample discussion of the methods of measuring performance variables. Measurement of Subsidiary Performance (SP) is particularly challenging due to data availability, because subsidiaries are often integrated into Multinational Corporations’ (MNCs’) internal reporting structure, or the data may be unfit for research purposes due to such variances as host country regulations, subsidiary capital structure or transfer pricing issues. Notwithstanding these challenges, SP and overall MNC performance remains at the centre of IB research and developing appropriate measures of SP is key to our understanding of important IB phenomena. This study is based on 106 quantitative articles from 2005 to 2018 with SP as the dependent variable. This study’s findings show a high variability of measurements of SP within the broad thematic clusters and between articles concerning similar areas of research. In lieu of recent debates about replication within social science (e.g., Bettis et al., 2016), this is highly problematic. The aim of this paper is to assess the measurement of SP in recent IB literature and propose a range of questions to guide researchers selecting the most appropriate SP measure(s) for their study.",
keywords = "Subsidiary performance, Performance measurement, DuPont model, Bibliometric coupling, VOSviewer, Leximancer, Subsidiary performance, Performance measurement, DuPont model, Bibliometric coupling, VOSviewer, Leximancer",
author = "Henrik Gundelach and Nielsen, {Bo Bernhard}",
note = "CBS Library does not have access to the material; null ; Conference date: 13-12-2019 Through 15-12-2019",
year = "2019",
language = "English",
url = "https://eiba2019.eiba.org/",

}

Gundelach, H & Nielsen, BB 2019, 'ROA, ROE, Market Share or Survival: How to Appropriately Measure Subsidiary Performance?' Paper presented at, Leeds, United Kingdom, 13/12/2019 - 15/12/2019, .

ROA, ROE, Market Share or Survival : How to Appropriately Measure Subsidiary Performance? / Gundelach, Henrik; Nielsen, Bo Bernhard.

2019. Paper presented at 45th EIBA Annual Conference 2019, Leeds, United Kingdom.

Research output: Contribution to conferencePaperResearchpeer-review

TY - CONF

T1 - ROA, ROE, Market Share or Survival

T2 - How to Appropriately Measure Subsidiary Performance?

AU - Gundelach, Henrik

AU - Nielsen, Bo Bernhard

N1 - CBS Library does not have access to the material

PY - 2019

Y1 - 2019

N2 - Since the early days of International Business (IB) research, there has been ample discussion of the methods of measuring performance variables. Measurement of Subsidiary Performance (SP) is particularly challenging due to data availability, because subsidiaries are often integrated into Multinational Corporations’ (MNCs’) internal reporting structure, or the data may be unfit for research purposes due to such variances as host country regulations, subsidiary capital structure or transfer pricing issues. Notwithstanding these challenges, SP and overall MNC performance remains at the centre of IB research and developing appropriate measures of SP is key to our understanding of important IB phenomena. This study is based on 106 quantitative articles from 2005 to 2018 with SP as the dependent variable. This study’s findings show a high variability of measurements of SP within the broad thematic clusters and between articles concerning similar areas of research. In lieu of recent debates about replication within social science (e.g., Bettis et al., 2016), this is highly problematic. The aim of this paper is to assess the measurement of SP in recent IB literature and propose a range of questions to guide researchers selecting the most appropriate SP measure(s) for their study.

AB - Since the early days of International Business (IB) research, there has been ample discussion of the methods of measuring performance variables. Measurement of Subsidiary Performance (SP) is particularly challenging due to data availability, because subsidiaries are often integrated into Multinational Corporations’ (MNCs’) internal reporting structure, or the data may be unfit for research purposes due to such variances as host country regulations, subsidiary capital structure or transfer pricing issues. Notwithstanding these challenges, SP and overall MNC performance remains at the centre of IB research and developing appropriate measures of SP is key to our understanding of important IB phenomena. This study is based on 106 quantitative articles from 2005 to 2018 with SP as the dependent variable. This study’s findings show a high variability of measurements of SP within the broad thematic clusters and between articles concerning similar areas of research. In lieu of recent debates about replication within social science (e.g., Bettis et al., 2016), this is highly problematic. The aim of this paper is to assess the measurement of SP in recent IB literature and propose a range of questions to guide researchers selecting the most appropriate SP measure(s) for their study.

KW - Subsidiary performance

KW - Performance measurement

KW - DuPont model

KW - Bibliometric coupling

KW - VOSviewer

KW - Leximancer

KW - Subsidiary performance

KW - Performance measurement

KW - DuPont model

KW - Bibliometric coupling

KW - VOSviewer

KW - Leximancer

M3 - Paper

ER -

Gundelach H, Nielsen BB. ROA, ROE, Market Share or Survival: How to Appropriately Measure Subsidiary Performance?. 2019. Paper presented at 45th EIBA Annual Conference 2019, Leeds, United Kingdom.