IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i2p717-d721161.html
   My bibliography  Save this article

The Impact of Size on the Performance of Transnational Corporations Operating in the Textile Industry in Portugal during the COVID-19 Pandemic

Author

Listed:
  • Eleonora Santos

    (Centre of Applied Research in Management and Economics, Polytechnic Institute of Leiria, 2411-901 Leiria, Portugal)

  • Rui Alexandre Castanho

    (Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Gornicza, Poland
    College of Business and Economics, University of Johannesburg, P.O. Box 524, Auckland Park, Johannesburg 2006, South Africa)

Abstract

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.

Suggested Citation

  • Eleonora Santos & Rui Alexandre 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, MDPI, vol. 14(2), pages 1-14, January.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:2:p:717-:d:721161
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/2/717/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/2/717/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Akmal Durmanov & Viera Bartosova & Svetlana Drobyazko & Oksana Melnyk & Volodymyr Fillipov, 2019. "Mechanism to ensure sustainable development of enterprises in the information space," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(2), pages 1377-1386, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lidiia Karpenko & Iryna Chunytska & Nataliia Oliinyk & Nataliia Poprozman & Olha Bezkorovaina, 2020. "Consideration of Risk Factors in Corporate Property Portfolio Management," JRFM, MDPI, vol. 13(12), pages 1-14, November.
    2. Jacek Woźniak & Wioletta Sylwia Wereda, 2023. "Shaping Frugal Innovation Processes, and Ensuring Security and Sustainable Development of Enterprises in the Environment," Sustainability, MDPI, vol. 15(4), pages 1-22, February.
    3. Filippov Volodymyr, 2020. "Formation of a polyfunctional structure of the system of transition mechanisms of Ukraine to sustainable development," Technology audit and production reserves, Socionet;Technology audit and production reserves, vol. 1(4(51)), pages 24-29.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:2:p:717-:d:721161. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.