The Impact of Size on the Performance of Transnational Corporations Operating in the Textile Industry in Portugal during the COVID-19 Pandemic
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Centre of Applied Research in Management and Economics, Polytechnic Institute of Leiria, 2411-901 Leiria, Portugal
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Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Gornicza, Poland
3
College of Business and Economics, University of Johannesburg, P.O. Box 524, Auckland Park, Johannesburg 2006, South Africa
*
Author to whom correspondence should be addressed.
Academic Editor: David K. Ding
Sustainability 2022, 14(2), 717; https://doi.org/10.3390/su14020717
Received: 28 November 2021
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Revised: 3 January 2022
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Accepted: 8 January 2022
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Published: 10 January 2022
(This article belongs to the Special Issue Trends in Emerging Markets, Globalization, Economic Development, Entrepreneurship and Management Strategies as a Result of Cross-Border Cooperation)
The aim of this work is to understand the impact of size on the performance of transnational corporations (TNCs) operating in the textile and clothing industry in Portugal during the COVID-19 pandemic. For this purpose, we used ORBIS data for the period 2019–2020 and narrative, financial and correlation analyses to assess the performance of five companies. Thus far, the impact of company size on the competitiveness of Portuguese textile affiliates during the pandemic has remained unexplored. The results show that smaller firms performed better than larger ones, likely due to the higher fixed costs of the latter at times when orders declined worldwide. Our analysis suggests that there are some characteristics of TNCs that matter in explaining company-level performance during crises, such as management experience and flexibility. Furthermore, as Portugal is a major European textile exporter, it is useful for the host country to assess the economic sustainability of its foreign investors. The results provide some policy recommendations regarding the promotion of foreign direct investment (FDI) in Portugal.
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Keywords:
foreign direct investment; firm size; corporate performance; textiles; transnational corporations; globalization; economic sustainability
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited
MDPI and ACS Style
Santos, E.; Castanho, R.A. The Impact of Size on the Performance of Transnational Corporations Operating in the Textile Industry in Portugal during the COVID-19 Pandemic. Sustainability 2022, 14, 717. https://doi.org/10.3390/su14020717
AMA Style
Santos E, Castanho RA. The Impact of Size on the Performance of Transnational Corporations Operating in the Textile Industry in Portugal during the COVID-19 Pandemic. Sustainability. 2022; 14(2):717. https://doi.org/10.3390/su14020717
Chicago/Turabian StyleSantos, Eleonora, and Rui A. Castanho. 2022. "The Impact of Size on the Performance of Transnational Corporations Operating in the Textile Industry in Portugal during the COVID-19 Pandemic" Sustainability 14, no. 2: 717. https://doi.org/10.3390/su14020717
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