Performance of Business services Multinationals in Host Countries: Contrasting Different Patterns of Behaviour between Foreign Affiliates and National Enterprises

Abstract

The aim of the work is to present a theoretical framework supporting business services internationalisation through foreign direct investment and to test the existence of significant differences of behaviour between foreign affiliates and enterprises under national control in business services within several European countries. The author uses published data of the first European pilot study on the performance of internationally-owned enterprises in trade and service activities. Results identify a differnt behaiour in favour of foreign affiliate and validate to a certain extent the international production and industrial organisation theories when applied to business services.