Article

 

Investigating profitability differences between hotel MNEs and DMEs in South Mediterranean European countries (p.11-34)

by

Ioanna A. Giannoukou, Department of Business Administration, University of Patras

George Anastassopoulos, Department of Business Administration, University of Patras

Christina C. Beneki, Department of Business Administration, TEI of Ionian Islands

Keywords : Greece, Tourism and Hospitality, Multinational Enterprises’ Subsidiaries (MNES), Performance

JEL classification : F23, L25

Abstract

The aim of the paper is to investigate the profitability differences between hotel multinational enterprises’ subsidiaries and domestic firms in France, in Italy, in Spain, in Greece and in Portugal. The data permits a comparison between a group of MNEs subsidiaries and a group of DMEs for the period 2000 – 2009. An econometric model has been employed to find support for the ownership advantages model of foreign production. Estimation results indicate that multinationality has a positive impact on firms’ performance. The analysis also reveals that the determinants of performance of MNEs and DMEs partially differ.