Eclectic paradigm

Eclectic paradigm

A theory that posits three types of advantages benefiting a multinational corporation: ownership-specific, location-specific, and market internalization advantages.

Eclectic Paradigm

An approach to analyzing whether it is beneficial for a company to make a foreign direct investment. The eclectic paradigm considers three factors. The first factor is whether a comparative advantage exists for the product the company wishes to develop in the foreign country. The second factor considers whether there is an advantage to developing that product in one country instead of another. Finally, the third factor considers whether it would be better for the company to develop the product in that foreign country itself rather than outsource development to a local company already in that country.
References in periodicals archive ?
The eclectic paradigm is widely regarded as an overarching explanation of international production (Dunning, 2000).
The eclectic paradigm of international production: A restatement and some possible extensions.
Conceptual foundation topics include key hypotheses that make internationalization theory the general theory of international strategic management; the new eclectic paradigm and international business strategy; and the multinational enterprise as a global factory.
The importance of Dunning's extensive work, carried out over fifty years of academic life, and of his contributions, is evident in current references to his earlier work (DUNNING, 1958, 1972, 1973, 1977) on the Eclectic paradigm and on the rationale of multinational enterprises and their investments abroad (DUNNING, 1981b, 2000).
We use the framework of the eclectic paradigm to empirically investigate internationalization by U.
The recent attempts to update the eclectic paradigm reflect the theoretical effort to account for the new global order.
Internalization approach was extended by Dunning (1980, 1988), through his eclectic paradigm which posited that there were three major sets of interdependent factors that influenced the extent, geography and industrial composition of foreign production undertaken by a firm--Ownership advantages (O), Location advantages (L) and Internalization advantages (I).
By way of critically espousing claims in support of an eclectic paradigm within the scope of community asset building in sago using agrarian societies, it is quite necessary to review the sago palm situation therein; so as to discuss the fundamental aims of promoting sustainable agriculture and participatory rural development in PNG.
Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism, Journal of International Business Studies , 26(3), 461-492.
1999), The Eclectic Paradigm as an Envelope for Economic and Business Theories of MNE Activity, Rutgers University, Graduate School of Management, mimeo.
Formalizing internationalization in the eclectic paradigm.
From OLI to OLMA: Incorporating Higher Levels of Environmental and Structural Complexity into the Eclectic Paradigm, International Journal of the Economics of Business, 8, 2, 2001, pp.