Does the digital sector affiliation matter for the productivity of multinational firms?

被引:0
作者
Wu, Yan [1 ]
Niu, Peiyuan [2 ]
Wu, Yunqiao [3 ]
机构
[1] Shanghai Lixin Univ Accounting & Finance, Sch Finance, 995 Shangchuan Rd, Shanghai 201209, Peoples R China
[2] Shanghai Lixin Univ Accounting & Finance, Inst Higher Educ, 995 Shangchuan Rd, Shanghai 201209, Peoples R China
[3] Shanghai Lixin Univ Accounting & Finance, Int Finance Coll, 995 Shangchuan Rd, Shanghai 201209, Peoples R China
关键词
Multinational enterprises; Foreign subsidiaries; Digital economy; Productivity; REVERSE KNOWLEDGE TRANSFER; CAPABILITIES; PERFORMANCE; BENEFITS; INPUTS; FLOWS; MNE;
D O I
10.1016/j.econmod.2024.107002
中图分类号
F [经济];
学科分类号
02 ;
摘要
We explore the extent to which multinational performance is determined by subsidiary productivity and their digital sector affiliations. Drawing on more than 6000 multinational parent companies and their over 17,000 foreign subsidiaries in 61 countries, we find that the effect of foreign subsidiary productivity on multinational performance is highest when parent and subsidiary firms are in the digital sector. The effect is weakened when the parent company is in the digital sector but the subsidiary is not, and vice-versa. This suggests that the relatedness between the parent and subsidiary firms in terms of their digital sector affiliations is important for the productivity effect. In addition, the productivity effect is more pronounced even during times of uncertainty, such as the recent global pandemic, suggesting a greater connectedness due to globalisation. We show that multinational parents are able to mitigate the adverse effect of high wage cost through the performance of subsidiaries.
引用
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页数:13
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