Performance Optimization Strategies in Multinational Corporations

Abstract

Operating within complicated multinational legal structures, performance optimization is both a key strategy for success and a challenging task for multinational corporations (MNCs). In this paper, the performance optimization strategies of MNCs are discussed, with a focus on cost effectiveness, innovations in the process of optimization, human resource competence, knowledge sharing and strategic orientations towards optimization. The paper incorporates both quantitative and qualitative research approaches by using surveys among 280 managers and executives in 55 MNCs and semi-structured interviews among 35 corporate executives. The methods include Structural Equation Modeling and regression analysis to examine the relationships between performance optimization concepts and business results. The findings indicate that performance optimization significantly affects operational efficiency (β = 0.61, t = 6.84, p < 0.001) which in its turn significantly affects the performance of MNCs (β = 0.65, t = 7.43, p < 0.001). Moreover, institutional environment influences the strength of relationships between the studied concepts (β = 0.24, t = 2.71, p = 0.007). Descriptive statistics show high average ratings for all aspects of optimization strategy indicating strong orientations towards optimizing practices. The future research directions are presented, involving the longitudinal study approach, comparative analyses by sectors, and the significance of new technologies for enhancing the performance management systems.