The Eclectic (OLI) Paradigm of International Production: Past, Present and Future
Abstract
This article describes the origins, and traces the subsequent evolution of the eclectic paradigm from the mid-1950s to the present day. It does so in the light of the changing characteristics of MNE activity and of the global economic scenario. 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.
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The configuration of ownership, location and internalization advantages is useful for understanding the benefits of exploiting existing assets and generating new ones in foreign markets relative to other alternatives such as contractual alliances (e.g. franchising) and hierarchies (e.g. wholly-owned subsidiaries).
“The configuration of these advantages is useful for understanding the benefits of exploiting existing assets and generating new ones in foreign markets relative to other alternates such as contractual alliances (e.g.franchising) and hierarchies (e.g.wholly-owned subsidiaries) (Dunning, 2001).”
From A systematic review of international franchising (2021) · cites this paper as Dunning, 2001
Cites
Oligopolistic reaction and multinational enterprise
Knickerbocker, F. T. (1973) · The International Executive · doi:10.1002/tie.5060150205 · Cited by 747 · cited 1× · see citing works
“Knickerbocker’s follow-my-leader or oligopolistic interaction approach (Knickerbocker, 1973) is entirely dependent on the existence of a particular type of market structure.”
BackgroundModels of the Multinational Enterprise
Buckley, P. J., & Casson, M. C. (1998) · Journal of International Business Studies · doi:10.1057/palgrave.jibs.8490023 · Cited by 507 · see citing works
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International expansion of emerging market enterprises: A springboard perspective
Luo, Y., & Tung, R. L. (2007) · Journal of International Business Studies · doi:10.1057/palgrave.jibs.8400275 · Cited by 3,118 · see citing works
A dynamic capabilities-based entrepreneurial theory of the multinational enterprise
Teece, D. J. (2014) · Journal of International Business Studies · doi:10.1057/jibs.2013.54 · Cited by 1,300 · see citing works
Global value chains from a 3D printing perspective
Laplume, A. O., Petersen, B., & Pearce, J. M. (2016) · Journal of International Business Studies · doi:10.1057/jibs.2015.47 · Cited by 347 · see citing works
A systematic review of international franchising
Alon, I., Apriliyanti, I. D., & Henríquez Parodi, M. C. (2021) · Multinational Business Review · doi:10.1108/mbr-01-2020-0019 · Cited by 74 · see citing works
Capability-Based Theories of Multinational Enterprise Growth
Teece, D. J., & Petricevic, O. (2020) · The Oxford Handbook of International Business Strategy · doi:10.1093/oxfordhb/9780198868378.013.3 · Cited by 16 · see citing works
- Authors
- Dunning, J. H.
- Corresponding author
- Dunning, John H.
- Venue
- International Journal of the Economics of Business
- Publisher
- Informa UK Limited
- Published
- 2001-07
- Volume
- 8
- Issue
- 2
- Pages
- 173-190
- ISSN
- 1357-1516 (ISSN-L)
- 1466-1829
- OpenAlex
- W2097821602
- Cited by
- 1,560
- References
- 2
- Citations by year
- 2026: 64 · 2025: 82 · 2024: 56 · 2023: 92 · 2022: 72 · 2021: 85 · 2020: 105 · 2019: 75 · 2018: 79 · 2017: 102 · 2016: 78 · 2015: 96 · 2014: 92 · 2013: 97 · 2012: 72
- FWCI
- 28.22
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- International Journal of the Economics of Business (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Funders
- Creative Europe
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › International Business and FDI
- Social Sciences › Business, Management and Accounting › Strategy and Management › International Arbitration and Investment Law
- Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
- Keywords
- eclectic paradigm, international production, foreign direct investment, multinational corporations, internationalization theory, global economic change
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