Performance of Transnational Corporations in Less Developed Countries

This study analyzes the determinants of the performance of a sample of 153 TNCs in 6 light manufacturing industries in the 5 ASEAN countries. Firm profitability increased as the firm’s market share, advertising, and R&D intensity increased and as the market shares of the 2 largest firms in the industry and tariffs increased. Profitability decreased as the market share of the third largest firm in the industry increased, as import penetration increased, as the growth in the firm's sales increased, and as the number of home countries of the TNCs in the industry increased.