Muhammedov M.
TRANSNATIONALITY INDEX: INTERNATIONAL PERSPECTIVES *
Аннотация:
the article analyzes various transnationality indices used to measure the degree of globalization and internationalization of business. The impact of these indices on economic growth, trade, investment and development technologies is discussed. Also the effect of the role of transnational corporations in international politics, social responsibility and sustainable development
Ключевые слова:
analysis, method, research, innovation, economics
International, transnational, multinational, global and born global are some of the many labels for companies that expand beyond the country in which they were founded to establish a presence abroad.
Conceptually, the landscape of transnationality is diverse and evolving, explored by scholars from a variety of disciplines, and still lacks a clearly defined theoretical framework. Although the term 'transnationality' is more often implied than used explicitly in much contemporary transnationalist scholarship, it remains used primarily in the context of immigrant transnationalism to emphasize the state of simultaneous rootedness in multiple regions and the apparent fluidity of movement between them that many immigrants experience in era of globalization due to changes in the nature of capitalism and the development of technology.
Forms of internationalization
An international strategy must be based on the context in which the organization finds itself. If an organization were competing in an industry environment with limited geographic scope and resource allocation outside its home market, the strategy employed would be different from that of an organization competing in an industry with significant geographic scope and diverse value chains.
The strategies of the two extremes are likely to be so different that they are easy to identify. However, research has been unable to clearly identify either the two extremes or other points on such a continuum. The difficulty arises from using the same terminology at different points on the continuum.
Transnational is a term that describes the significant combination of diversity, both in geographic scale and in the distribution of resources, operating in these diverse markets. Transnationality is the ultimate balance between centralization and decentralization. A multinational organization attempts to benefit from both its global efficiency and its knowledge of local market nuances. Transnational organizations are able to combine and use knowledge and experience of interaction in different markets. In addition, each geographic location has the right to modify any strategy based on specialized local knowledge.
Domestic and transnational organizational forms represent the extreme poles of the continuum and are the only definitions that researchers consistently adhere to. The terms multilocal, multinational, global, international, and export/import are used to refer to organizational forms between these two extremes. Although definitions of these organizational forms are widely used, their definitions vary to facilitate comparability across different research streams.
The multinational form of organization replicates and expands most of its internal operating activities in a limited number of geographic locations. Such an organization attempts to achieve the ability to respond to local conditions and the needs of the organization in a particular country. Although a multinational organization has a smaller geographic reach than multinational organizations, it has the same high level of value chain dispersion, which ensures the ability to respond to local conditions in each market it serves. A multinational organization may be limited in its geographic presence depending on the type of products supplied.
The Transnationality Index is a means of ranking multinational corporations used by economists and policymakers. Calculated as the arithmetic average of the following three ratios (where "foreign" means outside the corporation's country of origin):
- ratio of foreign assets to total assets
- ratio of foreign sales to total sales
- the ratio of the number of people employed abroad to the total number of people employed
The Transnationality Index was developed by the United Nations Conference on Trade and Development.
The difficulty of distinguishing between different organizational forms of foreign expansion has become a central epistemological problem in assessing the differences between the organizational forms created by international entrepreneurs and the effectiveness of their internationalization strategies. While some researchers believe that the emerging global classification differentiates firms by the speed at which they enter foreign markets, others note that “a larger research problem concerns inconsistencies in the definition and scope of international entrepreneurship.” Thus, some researchers have attempted to develop measures to measure the degree of internationalization.
Most of these measures define internationalization in terms of scale or extent of geographic coverage — the number of countries or regions in which a firm's products are sold or where its subsidiaries are located.
Номер журнала Вестник науки №10 (67) том 1
Ссылка для цитирования:
Muhammedov M. TRANSNATIONALITY INDEX: INTERNATIONAL PERSPECTIVES // Вестник науки №10 (67) том 1. С. 12 - 15. 2023 г. ISSN 2712-8849 // Электронный ресурс: https://www.вестник-науки.рф/article/10089 (дата обращения: 19.05.2024 г.)
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