A restatement and some possible extensions and determinants of international production, investment development path of dunning and narula 1993, are the few to mention. Dunning, the eclectic oli paradigm of international production. The eclectic paradigm as an envelope for economic and business theories of mne activity. Hope, strategic success in winter sports destinations. The eclectic oli paradigm of international production past, present and future free download as pdf file. The eclectic paradigm as an envelope for economic and business theories of mne activity john h. International journal of the economics of business, 82. This article describes the origins, and traces the subsequent evolution of the eclectic paradigm from the mid1950s to the present day. The eclectic oli paradigm of international production taylor. Past, present and future, international journal of the economics of business, 8, 2, 173, 2001. Ownership advantages specific advantages refer to the competitive advantages of the. Thus dunnings eclectic paradigm international production was born.
The eclectic paradigm of international production, first developed by dunning in. The contributions to this volume evaluate the eclectic paradigm in the global economy and its validity as a theoretical basis to understand developments such as economic globali. The article concludes by asserting that the eclectic paradigm still. Pdf the eclectic oli paradigm of international production. In contrast to western firms from other sectors, which have all achieved different levels of success in china, no wifs, from search engines, internet content providers, and social networks to ecommerce and sharing economy platforms, have. It is difficult to disagree with the editors conclusion that the oli paradigm is alive and well. The dunnings eclectic paradigm in helping us understand. The internationalization of chinese family enterprises and. According to dunning himself, the eclectic paradigm was proposed by him in 1976 first thing he writes in. International journal of economics and business 173190. An introduction to the eclectic paradigm as a metaframework for.
This paper aims to explain how thinking regarding multinationals, competitiveness and location in cities has evolved over the past five decades and how our current understanding and thinking about future challenges is contingent on these previous shifts. The concept of the eclectic paradigm of international production was first put forward by the present author in 1976 at a presentation to a nobel symposium in stockholm on the international allocation of economic activity. This study has made an attempt to investigate and analyze empirically the impact of foreign direct investment fdi on the economic growth for a panel of 32 subsaharan african countries during the period 20082014. International business, cities and competitiveness. The eclectic paradigm internalization advantages can be attributed to the conditions of improved organizational learning and technology development and not to the conditions for. Oli suffices to illustrate the eclectic nature of the framework. It is a further development of the internalization theory and published by john h. Dunning, journalinternational journal of the economics of business, year2001, volume8, pages173 190. For every backshoring firm, there are more than three offshoring firms. Research in strategy, economics, and michael porter. Past, present and future, international journal of. Past, present and future, international journal of the economics of business, 8. Developing the eclectic paradigm as a model of global strategy core.
Evaluation of greenfield strategies of retailers in sub. This theory has brought an individual firm perspective into international economics, which was lacking at that time. The eclectic paradigm, also known as the oli model or oli framework oli stands for ownership, location, and internalization, is a theory in economics. Pdf 3 a critical reflection and some conclusions on oli.
The article concludes by asserting that the eclectic paradigm still remains a. Explaining changing patterns of international production. Mar 26, 2019 existing international business theory, the ownershiplocationinternalization oli eclectic paradigm, failed to offer plausible explanations. International journal of the economics of business, 8 2, 173 90. In the following section, we analyse each of the three components of the oli, or eclectic paradigm, in turn, and articulate how an institutional dimension might be. Between 2010 and mid2012, only four percent of all firms moved production activities back to their home country. Download citation the eclectic oli paradigm of international production. Dunning university of reading and rutgers university abstract. Using history to help refine international business theory. International journal of the economics of business 8. International journal of the economics of business. Dunning argued that the eclectic paradigm is an alternative theory of the international production which pinpoints the essential characteristic of the mainstream ideas. In this way, it is much closer to conventional international economics than is the rbv approach of internalization theory.
This note presents empirical evidence on production backshoring the movement of production activities from locations abroad back to the home country. Eclectic paradigm a theory that posits three types of advantages benefiting a multinational corporation. May 21, 2018 this paper aims to explain how thinking regarding multinationals, competitiveness and location in cities has evolved over the past five decades and how our current understanding and thinking about future challenges is contingent on these previous shifts. One, those that result from exclusive access to inputs or markets and two, those that are directly associated with multinationality. Eclectic paradigm an approach to analyzing whether it is beneficial for a company to make a foreign direct investment. The eclectic paradigm as developed by dunning evolved over time. Dunning himself noted that few scholars at this time acknowledged the importance of the ownership or internalisation components of the paradigm dunning, 2002. A common theoretical framework aiming at explaining the decision of serving a foreign market via foreign direct investment is the oli eclectic paradigm developed by john h. The eclectic paradigm argues that international market failure underlies the existence of. The second part of the article considers a number of possible extensions of the paradigm and concludes by asserting that it remains a robust general framework for explaining and analysing not only the economic.
Multinational enterprises and the global economy ed. If the inline pdf is not rendering correctly, you can download the pdf file here. Why have all western internet firms wifs failed in china. Initially the eclectic paradigm was formulated and used as a theory of fdi. Eclectic paradigm, mnes, strategy, international production, alliances.
Institutions and the oli paradigm of the multinational. Institutions and the oli paradigm of the multinational enterprise. The article concludes by asserting that the eclectic paradigm still remains a powerful and robust. Dunning, journal international journal of the economics of business, year2001, volume8, pages173 190. The eclectic paradigm has arguably become the dominant theoretical basis in the study of fdi, multinational corporations and internationalisation over the last two decades. The eclectic or oli paradigm examines the interplay between the firms. Interfirm alliance and network relationships and the eclectic paradigm of international production. The eclectic paradigm as an envelope for economic and. Jun 29, 2016 the eclectic oli paradigm of international production. Past, present and future international journal of the economics of business, p e. Thus, in the future, as in the past, the paradigm continues to offer a common organizing framework to integrate the study of the mne.
Both static panel regression techniques and dynamic panel estimates were employed to assess the causal link of our regressors, namely, fdi, trade. Romanian immigrants and the inflows of foreign direct. The usefulness of the eclectic paradigm as a framework for combining and relating alternative theories of international business, and in coping with changes over time in the practice of international business. Dunning reading university, uk and rutgers university, usa abstract this paper updates some of the authors thinking on the eclectic paradigm of international production, and relates it to a number of mainstream, but contextspeci. It does so in the light of the changing characteristics of mne activity and of the global economic scenario.
In 1976, dunning presented the eclectic paradigm then called eclectic theory at a nobel symposium in stockholm. The dunnings eclectic paradigm in helping us understand why f. The usefulness of the eclectic paradigm essay example. The internationalization of chinese family enterprises and dunnings eclectic mne paradigm volume 1 issue 3 carolyn erdener, daniel m.
International journal of the economics of business 8 2. The article concludes by asserting that the eclectic paradigm still remains a powerful and robust framework for. This article uses phenomenonbased research pbr to examine why all western internet firms wifs have failed in china. Eclectic paradigm financial definition of eclectic paradigm. Country and firm level factors in international retail expansion. This eclectic approach to the theory of international production may be summarized as follows. Reappraising the eclectic paradigm in an age of allicance capitalism. Evaluation of greenfield strategies of retailers in sub saharan africa. There are three factors that determine the international activities of multinational enterprises mnes. The second part of the article considers a number of possible extensions of the paradigm and concludes by asserting that it remains a robust general framework for explaining and analysing not only the economic rationale of. Reconciling internalization theory and the eclectic paradigm. Rethinking the eclectic paradigm worcester research and.
The eclectic paradigm, namely the oli paradigm was put together by the economist john henry dunning 19272009 in the late 1970s. We then present our own concept of institutions and institutional change, which draws substantially on the work of douglass north. Past, present and future article in international journal of the economics of business 82. Developing the oli framework john cantwell the eclectic paradigm has arguably become the dominant theoretical basis in the study of fdi, multinational corporations and internationalisation over the last two decades. The article concludes by asserting that the eclectic paradigm still remains a powerful and robust framework for examining contextual specific theories of foreign direct investment and international production. A brief commentary and implications for ownership advantages. Past, present and future this article describes the origins, and traces the. The competitive advantage of emerging market multinationals.
447 409 550 1424 217 1348 472 591 992 1243 432 897 1384 1344 402 1094 1465 339 968 1382 1099 919 685 1165 788 475 439 171 1497 1139 1205 120 1351 829