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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
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    References listed on IDEAS

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    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.
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    Cited by:

    1. Eleonora Santos, 2024. "Sustainable Tourism Dynamics: Understanding the Impact of Tourist Stays on Regional Revenue and Development," Sustainability, MDPI, vol. 16(19), pages 1-11, September.

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