EIRP Proceedings, Vol 10 (2015)

Abstract

This research aims at examining what level of business competitiveness and innovation will be best suited for MNEs in the long-run. Author tests the relationship among excessive business competitiveness and innovation and the dysfunction of MNEs, by using multiple regression analysis as the quantitative method. The results show that both excessive business competitiveness and excessive innovation cannot influence the ceasing of business operations. For managerial implications, managers in MNEs should always monitor to what extent it is appropriate for organizational culture to create business competitiveness and innovation. They can add rules in to the internal administration of MNEs, since more rules will block excessive innovation. Regarding the limitations of the research, firstly, the databases did not categorize which enterprises in the USA are truly MNEs or local enterprises. Therefore, the precision of predictive analysis was diminished. Secondly, the data analyzed are not statistically significant, even though a normality test was performed prior to the analysis. Thirdly, since the nature of business competitiveness itself is hard to measure, it is difficult to find a good data representative of overall competitiveness. For future research, the author suggests the future researcher should expend resources identifying statistically valid data for the missing period.