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Empirical studies continuously reveal differences in the performance of foreign-owned firms (FOFs) and domestically-owned firms (DOFs) across countries, industries, over time and also at the plant level. Empirical evidence, however, is not conclusive. In some studies, FOFs perform better than domestic ones and vice versa. Despite this ambiguity, there is considerable agreement that these differences can be referred to a limited number of explanatory factors, depending on the performance measure chosen (e.g., productivity, profitability, growth, skill or wage).

Why Foreign-owned Firms are Different: A Conceptual Framework and Empirical Evidence for Austria