No full-text available
To read the full-text of this research,
you can request a copy directly from the authors.
International Production and the Multinational Enterprise
... A key strategic decision and highly researched question in international business and management is ''where to locate,'' be it in relation to Foreign Direct Investment (FDI), offshoring or outsourcing. Extant literatures have extensively explored the factors influencing firm-level decisions to (re)locate to selected geographic locations and the determinants of a country's location attractiveness for FDI (Buckley, 2016;Buckley & Casson, 1976, 2021Dunning, 1977Dunning, , 1981Dunning, , 1988Porter, 1990). Theory of MNE (Buckley & Casson, 1976;Hymer, 1960) addressed the locational factors by applying interactions between country-specific advantages (CSAs) and firmspecific advantages (FSAs) (Rugman, 1981). ...
... The simple answer is that the determinants of location attractiveness is fluid as its closely linked to the changes in global economy and shifts in FDI spatial dimensions (Bretas et al., 2022;Dunning, 1998Dunning, , 2000. Theory of MNE (Buckley & Casson, 1976;Hymer, 1960) and Dunning's seminal paper and extensions on the Eclectic Paradigm (Dunning, 1977(Dunning, , 1981(Dunning, , 1988(Dunning, , 1993(Dunning, , 1998(Dunning, , 2000(Dunning, , 2004 have led us to believe that the decision on ''where'' to locate is largely driven by the motives for FDI of the multinational enterprises (MNEs), and such motives are in turn influenced by the paradigm shifts in spatial dimensions and global market conditions. The world is witnessing a new normalized order as a result of the Covid-19 pandemic effects (Hitt et al., 2021;Verbeke, 2020) and based on historic trend, we believe that the determinants influencing location attractiveness may have evolved in tandem with the new norm. ...
... Shared Services is ''a form of offshoring strategy where an enterprise decides to concentrate a subset of existing business into new, semi-autonomous business units in a foreign location in order to gain cost efficiency, scale, new competencies and value generation'' (Bergeron, 2002). Unlike outsourcing where the parent firm contracts with a third party to perform specific functions, offshoring is an internalization strategy which involves relocation of business processes from one location to another, in pursuit of ownership and internalization advantages (Dunning, 1977(Dunning, , 1981(Dunning, , 1988. Setting up Shared Services in foreign locations is a seasoned form of vertical FDI actively adopted by MNEs through international offshoring. ...
Plain language summary
Whilst traditionally the offshoring spatial dimensions have been largely predictable, the emergence of Covid-19 and technology revolution has significantly altered the playing field. The traditional factors which influenced host location attractiveness in the past may no longer be applicable. There is an impending need to identify the determinants which are relevant and applicable in the new norm. Moreover, despite the intellectual continuity and diversity driving the premise of FDI-foreign location research stream, a comprehensive literature review of location attractiveness is lacking, especially in the context of the new norm. With these in mind, this paper systematically reviews the theoretical and empirical research on FDI location by analyzing 221 articles published between 1999 and 2023, to identify the emerging trends on what makes a location attractive for FDIs by MNEs. Through rigorous content analysis, the emerging themes and trends on locational studies were first identified, and subsequently these were linked to recent global phenomenon (Industry 4.0 led digitalization and disruptive technologies and ripple effects from Covid-19 pandemic) to draw implications on the critical factors which influence host-location attractiveness in the new norm. Based on the review, five key determinants were predicted to have a dominant influence: human capital investment, absorptive capacity, knowledge creation, innovation capability, and ICT infrastructure advancement. These factors can be exploited to create or upgrade competitive advantages in order to amplify host location attractiveness. Future research avenues are also recommended based on the findings from this review.
... The identification of the stage(s) of development in the investment development path, is an image of the international attractiveness of the given industry and indirectly of businesses expanding overseas from that industry and offers procedures for suitable economic policy response (Buckley & Castro, 1998;Dunning, 1981aDunning, , 1981bDunning, , 1986Dunning & Narula, 1996;Gorynia et al., 2019). Traditionally, policy implications based on the IDP framework has been based on the level of development. ...
... The investment development path relates an economy's net outward foreign direct investment to gross domestic product to determine the economy's level of development (Dunning, 1981a(Dunning, , 1986(Dunning, , 1988a(Dunning, , 1993Dunning & Narula, 1994, 1996Narula, 1993Narula, , 1995. The stage of development can be explained by ownership, localisation, and internationalisation (OLI) (Dunning, 1981b). The theory proposed five stages of development, namely, stages I, II, III, IV, and V ( Figure 1) (Dunning, 1981a(Dunning, , 1986(Dunning, , 1988a(Dunning, , 1993Dunning & Narula, 1994, 1996Narula, 1993Narula, , 1995. ...
... As incomes rise, consumers tend to demand higher quality products, spurred in part by the increasing competitiveness among firms that supply the products. As a result, the comparative advantage of labor-intensive activities will decline, wages within the economy would rise, and outward foreign direct investment will seek a location in economies at lower stages in the investment development path (Dunning, 1981a(Dunning, , 1981b(Dunning, , 1982(Dunning, , 1988a(Dunning, , 1988b(Dunning, , 1986Cechella et al., 2012). Also, the original ownership advantages of foreign firms start to get eroded, as firms in the domestic economy acquire their competitive advantages and compete with foreign firms in the same economic area. ...
The investment development path theory delineates countries in stages I, II, III, IV, and V according to the level of development as developing, transition, and developed countries. The World Bank’s classification of countries by income, however, identifies countries as lower-income, lower-middle-income, upper-middle-income, and high income. In this paper, we test the investment development path theory for countries based on the level of income using data from 1980 to 2019. Africa offers unique data as it is the only continent made up of entirely developing countries together with countries that fit into all four classifications based on income. Income level classifications appear to enhance the position of countries within the investment development path ahead of that based on the United Nations classification. The use of income classification should complement that of the United Nations in the empirical testing of the investment development path theory for a more current investment development path status.
... Eclectic paradigm: Dunning (1981) suggested an eclectic paradigm focusing on what drives firms to make FDI in imperfect market conditions. He listed several additional benefits of multinational ownership in the Ownership-Location-Internalization (OLI) context, defining the three specific categories of MNC benefits. ...
... He listed several additional benefits of multinational ownership in the Ownership-Location-Internalization (OLI) context, defining the three specific categories of MNC benefits. According to this paradigm, FDI is driven by three advantages, control, position, and internalization (Dunning, 1981;Monica Oehler-Şincai, 2011, 35-42;Alfaro and Chauvin, 2017, 7). ...
... These dynamics account for the motives, drivers, and conditions that lead firms to decide to internationalize production. Dunning (1979Dunning ( , 1981Dunning ( , 2000Dunning ( , 2001Dunning ( , 2003 and authors' own elaboration. Dunning's OLI paradigm or Eclectic Theory tries to explain FDI from many perspectives. ...
This study aims at examining the Slovenian airdrome multinational corporation construction Company, in OLI paradigm factors, notably focusing on how the OLI paradigm can be utilized to explain the course of the company for the decision of internationalization production. The major outcome of this study demonstrates that among the OLI paradigm, ownership and location advantages can best explain the Company’s internationalization of production as the Company has the monopolistic advantage in production airdrome in Balkans, at old Soviets countries, and the Middle East and those regions present locational advantage because of their effective demand capacity, low labor costs, free entry markets.
... At this stage, a crucial question comes to mind: Why do firms prefer to invest abroad? The most comprehensive answer to this question was given by Dunning (1977Dunning ( , 1981. According to Dunning (1977Dunning ( , 1981, companies choose to make investments abroad for three main reasons: ownership advantages (O), location advantages (L), and internalization advantages (I). ...
... The most comprehensive answer to this question was given by Dunning (1977Dunning ( , 1981. According to Dunning (1977Dunning ( , 1981, companies choose to make investments abroad for three main reasons: ownership advantages (O), location advantages (L), and internalization advantages (I). These three factors that determine the investment decisions of companies are called as OLI paradigm in the literature. ...
This chapter explores the impact of environmental policy stringency index (EPS) on FDI inflows in 26 OECD countries for the period 1995-2012. The study employed Durbin-Hausman panel cointegration and Emirmahmutoglu-Kose panel Granger causality tests to determine the long-run and the causal relationship between the relevant variables, respectively. According to findings, variables move together in the long run. On the one hand, in the long run, capital formation and economic globalization increase FDI inflows, while real effective exchange rate, EPS, and non-market EPS decrease these inflows. On the other hand, the coefficients of the parameters are estimated positively for capital formation and negatively for the real effective exchange rate. It was determined that environmental policies cause FDI inflows in 12 out of 26 countries. These empirical findings suggest several courses of action for policymakers.
... Further, the stages of the IDP were assigned numeric values with the highest not exceeding 5. Whilst these served the purpose of the study of Djokoto (2021b), not only did the number of countries reduce the efficiency of the estimates, but the range of the numeric values also reduced the variability in the IDP variable. The link between IDP and HDI is important because whilst the IDP and HDI measure the level of development (Djokoto, 2021b;Dunning, 1981a;Dunning, 1981b;Dunning, 1986), the GDP used in IDP is also used in the construction of the HDI through the GNI (Djokoto, 2021b;UNDP, 2020;UNDP, 2021). In this paper, whilst accounting for the fractional properties of the HDI and including IDP to explain HDI, we used a proxy of the IDP that allowed for each country to have data for each year. ...
... The basis of each of the five stages; I, II, III, IV and V lies in the levels and interaction of three factors: ownership, localization, and internationalization (Djokoto, 2021b;Dunning, 1981b). In stage I, the inward foreign direct investment (IFDI) exceeds outward foreign direct investment (OFDI). ...
To investigate the nexus between the investment development path (IDP) and human development, we modelled the human development (human development index, HDI) using generalized estimation equations and accounted for the unit interval property using non-linear link functions. The gross domestic product per capita was used as the proxy for the IDP. Using panel data of 2,568 observations from 135 countries for 1990 to 2019, we found a strong and positive effect of IDP on HDI. Thus, there is a nexus between IDP and human development. The 4% elasticity of the IDP, confirms the broader scope of the HDI than the IDP in capturing development. Coupled with the 60% correlation between the IDP variable and HDI, aside from serving as a proxy for each other, these could also be instruments for each other provided they are uncorrelated with the error term in the model under consideration. Trade, infrastructure, and human capital were found to enhance human development. These offer policy options for enhancing human development.
... We believe that the empirical results will provide many interesting evidences for this issue. support this can be found in Behrman (1960), Findlay (1978), Borensztein et al. (1998), Blomström et al. (2001), Zhang (2001), and Alfaro et al. (2004), and Dunning (2013), and Sabir et al. (2019). ...
... Nevertheless, the effects of this relation possess frictions when both of them cannot fully absorb the advantages. Dunning (2013) documented that resources are transferred internally within multinational companies thus FDI may not increase economic growth. Furthermore, the capacity of host countries defies the efficiency of FDI (Beugelsdijk et al., 2008;Borensztein et al., 1998;Schneider, 2005). ...
The article examines the impact of tax burden, institutional quality, and some macroeconomic determinants on attracting inflows of FDI in ASEAN-7. We estimate the panel data sample with pooling, a seemingly unrelated regression (SUR), and fixed-effects models. The empirical results indicate that economic growth, tax burden, quality of economic institution, and inflation are key drivers that significantly attract FDI while population growth and quality of political institution are negatively associated with FDI inflow. These findings may connect to the price transferring and demand-following hypothesis. Our results provide some important implications for policy-makers in ASEAN developing countries that are enhancing FDI inflow in the future.
... Although there have been a wealth of studies, empirical findings from these efforts provide little consensus regarding the impact of various internal and external forces on performance outcomes. For example, Daniels and Bracker (1989), Dunning (1981), Haar (1989), and Kumar (1984) failed to find a link between multinationality and MNC profitability or growth. In contrast, Grant (1987), Kim, Hwang, and Burgers (1989), and Mitchell, Shaver, and Yeung (1993) found positive associations, while Siddharthan and Lan (1982) found negative relationships between the same variables. ...
... Level of overseas activity had a positive relationship with organizational growth for one period of the study. Dunning (1981) Overseas production was insignificantly related to return on assets. ...
Theoretical arguments from two distinct literatures are integrated to develop a model which attempts to shed further light on the determinants of performance in multinational corporations. It is suggested that the ambiguity of results in prior investigations could be attributed to variations in managerial discretion. Building on the concept of managerial discretion, it is hypothesized that in high discretion settings, organizational and leadership factors will be associated with performance. In contrast, in low discretion settings, where environmental factors predominate, managers have limited latitude; therefore, the impact of these factors on performance will be limited. These hypotheses are tested in two different industry settings. The results largely confirm the theoretical contentions.
... In the same line of thinking, Buckley & Casson (1976) insist on the internalization of skills and knowledge as driving forces behind the development of multinationals since the end of World War II. Dunning (1981) integrates the firm's approach with domestic macroeconomic indicators, while Hirsh (1976) formulates the trade-off between export and foreign production and sets the conditions under which either method serving the foreign market is more profitable. Knickerbocker's (1976) study of the oligopolistic reactions of firms tries to explain why FDIs are concentrated in time and space. ...
... The extent to which firms choose to locate these value-adding activities outside their national boundaries » 3 . Dunning (1981) drew on several theories to formalize his "paradigm", but three of them form the main core. The first is the "Ownership approach" whose specific advantages refer to the competitive advantages of the firms seeking to engage in foreign direct investments. ...
The aim of this paper is to determine the factors that attract Foreign Direct Investments (FDIs) to Central and Eastern European Countries (CEECs) and Southern and Eastern Mediterranean Countries (SEMCs). To this end, this paper tested three variables representing public governance, physical infrastructure and macroeconomic quality, over a ten-year period stretching from 2008 to 2017. The results of the regressions estimated on CEE countries show that entrepreneurs are attracted to this region mainly for governance and infrastructure quality. Macroeconomic policy variables seem to attract less FDIs to these countries. Using aggregated variables, the results of the regressions estimated on SEMCs show that the governance variable becomes statistically significant but retains a low value. The other variables of physical infrastructure and macroeconomic policies seem to be more robust and better explain FDI inflows to this region.
... The IDP theory hypothesised five stages of development: I, II, III, IV and V. The basis of each stage lies in the levels and interaction of three factors: ownership, localisation, and interna-tionalisation (Dunning, 1981b). In stage I, the IFDI exceeds OFDI. ...
... Whilst the former captures the downward slope part of the parabola, the latter represents the upward slope part of the parabola (Figs. 1 and 2). The left part of Figs. 1 and 2 represents stages I and II whilst the right part below the GDPPC line captures stage III (Dunning, 1981a(Dunning, , 1981bDunning and Narula, 1996). As the right part of the curve does not reach above the GDPP line, developing countries are depicted to be in the mid part of stage III. ...
Small states, classified as countries with population barely exceeding 1.5m, encounter special development challenges. Although they share common characteristics of small population and size of land area, they also differ along other characteristics such as geography, remoteness, and dispersion. These have combined to depict them as different from large states and hence could differ from large states regarding responses to macroeconomic indicators such as foreign direct investment. Thus, this paper investigated the stages of small states within the investment development path (IDP) framework. As a collective, developing small states depart from the theory of the IDP. As individual Small States, some of the countries also showed stages that are inconsistent with theory and empirical evidence. Small States need to be studied as a collective and as individual countries.
... The determinants of FDI have been the focus of extensive research, particularly in developing countries. Ownership, Location, and Internalization (OLI) framework, introduced by Dunning (1981), have been widely acknowledged as one of the key studies in this area. According to the OLI framework, FDI is influenced by three key factors such as ownership advantages, location advantages, and internalization advantages. ...
The study focuses on FDI inflows to South Asian countries between pre-COVID-19 and COVID-19 periods and the relationship between FDI inflows and good governance in South Asian countries over the period of 1990 to 2021. T test, panel co-integration test and dynamic panel data analysis are employed to accomplish the objectives of the study. The impact of COVID-19 on South Asia’s FDI inflows is found to be significant and particularly inflow of FDIs has experienced a significant drop in all other South Asian countries, except India during the pandemic period. Additionally, the study confirms a positive relationship between good governance and inflow of FDIs in South Asian countries. Hence, the present study strongly recommends improving infrastructure facilities while ensuring a higher level of good governance to attract more FDI to the countries in South Asian region.
... Concernant la délocalisation extérieure des entreprises, plusieurs travaux théoriques se sont concentrés sur l'explication des facteurs favorisant la décision d'investir à l'étranger. Parmi ces études figure la théorie électrique, également connue sous le nom de paradigme OLI (Ownership, Location & Internalisation), développée par Dunning, qui repose sur trois types d'avantages pour la multinationalisation (Dunning, 1981(Dunning, ,1993. Le premier type d'avantage (Onwnership) est inhérent aux caractéristiques de l'entreprise, telles que la taille ou l'économie En effet, après avoir examiné la littérature, plusieurs modèles et concepts ont été identifiés pour aborder les facteurs significatifs de l'attractivité territoriale des investissements. ...
L’objectif de ce papier est d’identifier les facteurs d’attractivité des investisseurs implémentés dans la ville de Casablanca au Maroc. Le modèle conceptuel proposé a été construit à l’aide d’une revue de littérature sur les facteurs d’attractivité territoriale. Les données exploitées ont été collectées à travers une enquête réalisée auprès des dirigeants des entreprises installées à la ville de Casablanca, qui totalise, à elle seule, environ le tiers des entreprises du Maroc. Sur le plan empirique, l’approche « Partial Least Square (PLS) » a été mobilisée afin de tester le lien de causalité entre les variables explicatives et l’attractivité territoriale. Ainsi, nos résultats montrent que les facteurs de ressources naturelles, de notoriété de marque, de digitalisation de services et d’infrastructures agissent positivement sur l’attractivité de la ville. A la lumière des résultats de ce papier, des mesures pourraient être proposées aux décideurs publics afin d’améliorer l’attractivité territoriale de la ville de Casablanca.
... Thus, emergent technologies can impact the theory on foreign direct investment which postulates that MNEs undertake value chain activities via the production of networks (Dunning, 2012). In this regard, the Metaverse represents a new form of network creation for value chain activities, whereby upstream and downstream partners can interact for production-related activities without the need for an intermediary (Yao et al., 2022). ...
Recent advances in technology (e.g., the Internet of Things, Augmented Reality, Virtual Reality, Cloud Services, Artificial Intelligence, and Blockchain), the shift towards digital products, and the increased use of digitalisation by firms have enhanced consumers’ experience and transformed how companies operate, create products/services, and offer value to multiple stakeholders on a global scale. These technological innovations have led to the phenomenon known as the Metaverse. The Metaverse does not refer to any one type of technology but is a broad (and often speculative) shift in how we interact with different technologies in the same space. In the context of International Business (IB), the recent emergence of Metaverse appears to make geographical, sectoral, and operational barriers less relevant, raising complex questions about how current IB theories can explain the world-spanning, sectorally fluid, and centrifugal behaviour of firms in the era of digital globalisation. In this paper, we obtain a critical understanding of the important opportunities and challenges that the Metaverse and the fluidity of digital technologies bring to the IB field. Specifically, we discuss how traditional theories can be effectively utilised to explain firms’ internationalisation, and adapted to reflect the new technological era. We propose a framework for new approaches to IB research to help advance research on Metaverse and IB, which can provide important opportunities for future work in this field.
... International expansion represents an important strategy for firms to achieve growth. However, the extent to which firms can benefit from international expansion largely depends upon whether they can choose proper locations for their foreign operations (Dunning, 1981). Prior research on this topic has paid special attention to the role of distance between home and host countries, providing substantial empirical evidence that both geographic and cultural distances deter international expansion (Boeh & Beamish, 2012). ...
Professional sports leagues, like so many other organizations, seek to access international markets. The purpose of this research was to explore stakeholder perceptions of the internationalization potential of the Persian Gulf Pro League (PGPL). Data were collected via 20 in-depth interviews with football federation marketing executives, club marketing executives, and experts in internationalization and sports marketing. The data analysis was guided by the principles of grounded theory with the aid of open and axial coding. The analysis produced 39 issues affecting the internationalization of the PGPL. These were classified into five main dimensions—political, economic, managerial, legal, technical-marketing, and socio-cultural factors.
... Respaldando el primer enfoque, la internacionalización desde una perspectiva económica, se traerán a colación dos de las principales teorías exponentes: La teoría del paradigma ecléctico de Dunning, que pretende integrar coherentemente las teorías de corte económico relacionadas a las explicaciones de la existencia de la empresa multinacional, ensamblando en su teoría los aportes epistemológicos relacionados con la organización industrial, de los costos de transacción, de localización y del comercio internacional (Cardozo et al. 2007). Dunning (1981) plantea en su hipótesis las condiciones relevantes para que una organización emprenda su proceso de internacionalización a través la inversión extranjera directa. En primer lugar y desde la perspectiva de Hernandez y Mendoza (2014) debe existir una ventaja de activos, o ventaja de propiedad, que hace referencia a la posesión exclusiva de un activo intangible que le otorga una ventaja sobre la competencia. ...
El objetivo del libro es realizar un diagnóstico del desarrollo económico, ambiental y educativo de los países pertenecientes al acuerdo de integración de la Alianza del Pacífico, haciendo énfasis en estudios comparados en regiones específicas de los países pertenecientes al acuerdo. El primer tomo de la serie de libros sobre desarrollo, innovación y tecnología en los países de la AP es el resultado de los procesos de investigación internacional y pretende ser un referente sobre aspectos de estudio que sean base para la creación de un contexto habilitante para el desarrollo de estos temas en los casos que son objeto de estudio.
La primera sección, presenta (4) cuatro capítulos con la muestra de modelos de predicción aplicados al COVID-19 y estudios relacionados con la integración comercial de los países de la AP para productos agroindustriales y con denominación origen. La segunda sección, presenta (3) tres capítulos relacionados con el contexto regional de la economía colombiana, analizando tres fenómenos como lo son la internacionalización de las empresas de transporte en Bogotá, formación de precios en subastas ganaderas en Pereira y la posible histéresis del desempleo en el departamento de Nariño. La tercera
sección, incluye (3) tres capítulos relacionados con el contexto ambiental y de innovación rural en Colombia, particularmente, el impacto de las certificaciones ambientales como la ISO 14001 en las organizaciones, la co-creación de innovación social rural y el desarrollo de capacidades de innovación en el mercado de bioplásticos.
Por último, en la cuarta sección se presentan (3) tres capítulos sobre el contexto educativo a través de la propuesta de un enfoque innovador de aprendizaje desde el rol psicológico, la percepción del desempeño laboral de empleadores y egresados peruanos de marketing y la importancia de la cultura de calidad en las instituciones educativas
... According to Dunning's (1981) OLI paradigm, MNEs globally expand operations because of ownership, location and internalization advantages. The OLI paradigm aims to explain the origin, level, pattern and growth of MNE offshore activities. ...
Purpose
Using insights from the supply chain resilience perspective and the international business literature, this study aims to investigate the determinants of firms’ decisions to reshore manufacturing under the high levels of uncertainty brought about by the ongoing US–China trade war and COVID-19 pandemic.
Design/methodology/approach
The proposed conceptual framework is tested using survey data collected from 702 Taiwanese firms with manufacturing in China. The firms were drawn from a database compiled by Taiwan’s Ministry of Economic Affairs.
Findings
The results show that two supply chain factors (tariffs and supply chain completeness) and two non-location-bound factors (labor cost and material cost) are critical determinants of the decision to reshore under uncertainty.
Originality/value
This research elucidates and empirically validates several factors that influence the reshoring decision in uncertain environments. The findings provide valuable theoretical, practical and strategic insights into how firms should manage their value chains in the post-COVID-19 era.
... Respaldando el primer enfoque, la internacionalización desde una perspectiva económica, se traerán a colación dos de las principales teorías exponentes: La teoría del paradigma ecléctico de Dunning, que pretende integrar coherentemente las teorías de corte económico relacionadas a las explicaciones de la existencia de la empresa multinacional, ensamblando en su teoría los aportes epistemológicos relacionados con la organización industrial, de los costos de transacción, de localización y del comercio internacional (Cardozo et al. 2007). Dunning (1981) plantea en su hipótesis las condiciones relevantes para que una organización emprenda su proceso de internacionalización a través la inversión extranjera directa. En primer lugar y desde la perspectiva de Hernandez y Mendoza (2014) debe existir una ventaja de activos, o ventaja de propiedad, que hace referencia a la posesión exclusiva de un activo intangible que le otorga una ventaja sobre la competencia. ...
Las huertas agroecológicas representan un punto de encuentro para la consolidación de la agricultura sostenible en regiones urbanas y rurales de América Latina. Sin embargo, estos procesos se enfrentan a retos y desafíos en donde la academia puede articularse para consolidar iniciativas de innovación social desde dinámicas de interacción y construcción comunitaria del conocimiento. El presente estudio analiza, desde el valor social de la innovación rural, un caso de estudio en zona rural cercana a la ciudad de Popayán, Cauca, Colombia, para la implementación de huertas familiares. Asimismo, se relaciona la metodología de co-diseño aplicada, la cual tuvo que transitar entre lo presencial y lo virtual y puede ser replicada en otros contextos latinoamericanos, como los países de la Alianza Pacifico, dado que ellos representan a pequeños y medianos agricultores. Por ende, en este momento es importante innovar para que las huertas familiares basadas en principios agroecológicos puedan fomentar una producción sostenida de alimentos de autoconsumo y diversos beneficios sociales. Por ende, es importante innovar en las huertas familiares basadas en principios agroecológicos para que puedan fomentar la producción sostenible de alimentos.
... Respaldando el primer enfoque, la internacionalización desde una perspectiva económica, se traerán a colación dos de las principales teorías exponentes: La teoría del paradigma ecléctico de Dunning, que pretende integrar coherentemente las teorías de corte económico relacionadas a las explicaciones de la existencia de la empresa multinacional, ensamblando en su teoría los aportes epistemológicos relacionados con la organización industrial, de los costos de transacción, de localización y del comercio internacional (Cardozo et al. 2007). Dunning (1981) plantea en su hipótesis las condiciones relevantes para que una organización emprenda su proceso de internacionalización a través la inversión extranjera directa. En primer lugar y desde la perspectiva de Hernandez y Mendoza (2014) debe existir una ventaja de activos, o ventaja de propiedad, que hace referencia a la posesión exclusiva de un activo intangible que le otorga una ventaja sobre la competencia. ...
La crisis ambiental por la que atraviesa el planeta se ha derivado de dinámicas de consumo sumamente perjudiciales para el entorno. Entre éstas se encuentra el uso masivo de materiales plásticos derivados de petróleo, cuya degradación puede tardar cientos de años. Frente a esto, desde la comunidad científica e industrial se han buscado alternativas para tratar de mitigar el efecto negativo derivado de estos plásticos. Para esto, se han adelantado esfuerzos para desarrollar bioplásticos elaborados a partir de diversas materias primas renovables. Sin embargo, este esfuerzo ha implicado también un avance en las capacidades de ciencia, tecnología e innovación. En este sentido, un grupo de investigación de una universidad colombiana, desde hace varios años ha trabajado alrededor de la consolidación de una oferta tecnológica de empaques biodegradables. Este caso refleja las posibilidades y oportunidades que tiene para regiones como los países que conforman la Alianza del Pacífico, el fortalecimiento de procesos de desarrollo tecnológico, donde los bioplásticos pueden convertirse en ejes de transformaciones tecnológicas y sociales. El nuevo escenario de la bioeconomía donde se promueven los negocios basados en el aprovechamiento de los recursos naturales, se convierte en un importante reto para regiones donde se disponen de importantes materias primas susceptibles de ser transformadas en productos de alto valor agregado como son los bioplásticos, en donde se articulen esfuerzos alrededor del desarrollo científico y su aplicación en beneficio de los territorios.
... 16 This approach to the theory of the multinational firm is also known as the OLI frameworkownership advantage, localization, internalization. See Dunning (1981). 17 For models that endogenize FDI decisions, see Helpman (1984), Markusen (1984), and Helpman, Melitz, and Yeaple (2004). ...
... Traditional MNE theories consider technological assets such as patents, brands or intangible assets as ownership advantages that justify the internationalization process of firms (Dunning, 1981). The variable used for capturing conventional ownership advantages (Oa) is patents, which refers to the number of issued patents in the parent firms, a measure of existing technological capabilities at the firm level [4]. ...
Purpose
The springboard theory for multinational enterprises and the upward spiral model address the expansion of emerging countries’ multinational enterprises (MNEs) abroad as a set of resource-building stages. This paper aims to analyze this model by qualifying knowledge flows in three domains: learning effects, transfer flows and global connections.
Design/methodology/approach
The authors use 2018 data from the ORBIS database to identify evidence concerning the springboard MNE (SMNE) phenomenon. The authors select MNE firms from 93 emerging economies with presence in 71 developed and 93 developing countries. In addition, the authors differentiate between the levels of technological intensity of emerging market MNEs’ sectors.
Findings
The results highlight the existence of learning processes taking place in subsidiaries and feeding back into parent firms, as well as the existence of capability transfer from home to host units.
Originality/value
The main contribution is the addition of empirical evidence on the SMNE and specifically the upward spiral model, considering the micro-level and the productivity differences between parent firm and subsidiaries.
... This is not only important in the competition of industries with highly complex, customized, and context-specific features, but also likely to become a decisive factor in the future industrial competition as a large number of industries develop towards user customization. In the traditional integrated enterprises, the branches of MNCs in developing countries are mainly administrative rather than strategic (Amsden, 2009;Dunning, 1981). In GPNs, flagship firms influence partners and control regional markets through non-proprietary partnerships and advantages in technology integration capabilities (Brusoni et al., 2001;Dosi et al., 2005;Schmitz, 2007;Ernst and Kim, 2001). ...
The purpose of this article is to explore the competitive source of Chinese firms in an industrial sector of complex producty systems. It helps to reveal the organizational innovation developed by Chinese firms in coping with international competition and technological challenges.
The article employs qualitative method of research. The evidences are mainly collected through interviews, field observation and document analysis.
An pattern of engineer-centered organization is the source of competitiveness of NREC in this study. The firm equips its front project teams, and now its overseas branches with developmental human resources and authorizes them the power of decision-making to leverage R&D projects. It is an emerging challenge to the traditional MNC pattern, and enables the Chinese firms to build their capabilities on context-based knowledge.
As a single-case study paper, there are limitations about the external validity of its argument. Through the in-depth discussion of NREC case, this paper aims to generate some clues for future study in the relevant academic community, which can be a useful step to formal theorizing and modelling. That is why we develop the paper on a single case. As future directions of research, comparative studies covering more cases not only within the power system control and protection industry but also among different CoPS industrial sectors are really needed.
For innovative firms from developing countries like China, they need to develop institutional arrangements to incentivize engineers in frontline, which may help them to build compentence upon successful interaction with customers. During the era of globalization, such a pattern may generate special competitiveness over giant multinationals or global production networks.
Our research provides an instructive case on Chinese rise in industrial sectors of complex product systems. Its findings can not only provide enlightenment for industrial catch-up in developing countries through organizational innovation, but also helps to initiate a reconsideration of the traditional theorizing of MNC and global production network.
... Theoretically, it was expected that foreign firms might not invest because of high investment costs and unfamiliar institutional and political regimes. FDI looks for any of the three conditions proposed by Dunning (1981). Anyone of these, ownership, internalization, or location conditions, enables them to decide to engage in investment (Asghar et al., 2011). ...
Purpose - This study explores the asymmetric effects of FDI (Foreign Direct Investment) on economic growth in Pakistan.
Methods - This paper uses an Asymmetric Effects ARDL (Autoregressive Distributed Lag) model.
Findings - The results show that the effects of increasing and decreasing FDI are not equal. The study concludes that reducing FDI is more beneficial for economic growth, particularly in the longer horizon. It mobilizes domestic investment and promotes financial freedom while reducing the reliance on pollution-intensive multinational corporations and taps indigenous knowledge gains.
Implications - This study proves that self-reliance is more beneficial for the case of Pakistan.
Originality - The researchers and policymakers are unclear about the merits and demerits of FDI as a substitute for domestic investment. Empirical studies are majorly convinced that an increase in FDI generally merits economic growth but weighs in the Pollution Haven Hypothesis and ignores the indigenous knowledge-based domestic resource.
... The impact of ownership origin and, in particular, foreign ownership on firm performance is well researched (Bürker et al. 2013;Carney et al. 2019). Referring to Dunning (1981) and Caves (2007), Bürker et al. (2013) note the advantages related to foreign ownership stressed by the internationalisation literature. These are linked to the fact that multinational firms possess sophisticated assets which domestic firms lack, including managerial expertise, process and production technologies or brand names. ...
We investigated the impacts of president longevity and the geographic orientation of owners on team performance and on the effectiveness of dismissing the leader. In addition, we considered their impacts on the effectiveness of not dismissing the leader while the same organisation fires them at another time for a similar performance. We also tested the impact of dismissing the leader or not on performance. We explored the aforementioned risk-taking relationships in the first tier of French men’s football over the 1994–2016 period (n = 4918 observations). To do so, we used a counterfactual based on the evolution of the team position over the last three games leading to the leader change and estimate linear regression models with fixed team effects. Our findings show that performance improves either after a leader dismissal or not in the same situation, and both president longevity and the geographic orientation of owners impact the effectiveness of dismissing the leader or not. In particular, global- and local-oriented ownerships have a positive impact on the effectiveness of the decision to dismiss the leader or not compared to national-oriented ownership. Practical implications stem from the research, e.g., how organisations with national-oriented ownership can overcome their competitive disadvantage.
... II. V kontextu OLI modelu (Dunning, 1981) se zemi podařilo vybudovat výhodu umístění, díky které příliv PZI do hostitelské ekonomiky stoupá. Země, které bojují s COVID-19 a přijímají represivní opatření, tuto výhodu ztrácejí. ...
The paper describes the responses of national economics to the spread of pandemic COVID-19 in year 2020. As a result of economic and social interconnectedness and dependency of countries, the actions are mutually influential in a great extend. The economic impacts are analysed from macroeconomic perspective, demonstrating the effects on important economic indicators. Due to the crucial role of investment, the paper focuses on disruptions of foreign direct investment flows and consequent changes, especially in the European Union. Based on analysis of data from UNCTAD, OECD, Czech Statistical Office and Czech National Bank, the aim is to provide prognosis of future development of foreign direct investment in case of Czech economy. Three scenarios are constructed with forecasting 15%, 37% and 60% drop in foreign direct investment inflow. The paper highlights the significant relevance of investment incentives in attracting the investors and investment promotion agencies in general in terms of avoiding divestment. The main factor that determines the final fluctuation of the variable (the state of foreign direct investment in individual years) is the health situation and the related restrictions on business activities. The presented results lead to a discussion of recommendations for economic policy concerning the support of business activities.
... Building on this idea an extensive literature developed over the following two decades in the fields of international business, industrial organization and firm theories (see Caves, 1996), culminating in the wellknown contribution by Dunning (1981), who proposed an eclectic approach to the analysis of the multinational firm. According to the eclectic paradigm, three major facts need to be explained. ...
This paper reviews the state-of-the-art work on agri-food Multinational Enterprises (MNEs), by discussing the current state-of-play and the tools at our disposal to expand knowledge. After a critical discussion of available data, new data from OECD are used to provide a broad overview of the role of MNEs in the agri-food Global Value Chains (GVCs) and to draw a few stylized facts. Data reveals that in the food, beverages and tobacco industry MNE activity is higher than on average, while in agriculture it is lower; North-South flows are increasing as well as the role of MNE in the agri-food GVCs. The review of theoretical and of empirical literature shows how modern trade theories provide us with a strong theoretical background which, together with improved firm-level and country-level data, may help explaining observed patterns and effectively orientate empirical analyses of agri-food MNEs in several directions.
... In response to several partial theories concerning the ownership and location of international production, taking into account only one or a few market imperfections respectively, the eclectic paradigm was developed by Dunning (1977). Since then, it has been refined and develop in Dunning (1981;1988;1993), as well as in Gray (1996). ...
This study examined the impact of manufacturing foreign direct investment on manufacturing capacity utilization in Nigeria between 1981 and 2018. Time series data were sourced from the Central Bank of Nigeria (2008 & 2018) and the World Bank (2018). The Augmented Dickey Fuller (ADF) test result for stationarity revealed that all the series were integrated of order one and the Johansen Cointegration test result showed long run relationship among the variables. Using the vector error correction mechanism (VECM) the results revealed that in the short run only market size (MKTS) had significant positive impact on manufacturing capacity utilization (MCU) in Nigeria for the period under study. Nominal exchange rate (EXR), domestic investment (DINV), ratio of non-oil export to gross domestic product (NEXY) and manufacturing foreign direct investment all exerted insignificant impact on MCU leading to the retention of the null hypotheses of no significant impact on MCU except for MKTS. On the other hand, nominal exchange rate had significant negative impact on MCU while domestic investment (DINV) had significant positive impact on manufacturing capacity utilization (MCU) in the long run confirming the a priori economic expectations. The ratio of non-oil export to gross domestic product (NEXY), market size (MKTS) and manufacturing foreign direct investment (MFDI) all exerted insignificant negative impact on MCU in the long run. Consequently, the study concluded that manufacturing FDI impacts negatively on manufacturing capacity utilization in Nigeria between 1981 and 2018. Based on the findings of this study, the authors recommended among others that government policies should create equal opportunities for both multinational corporations and domestic firms in the manufacturing sector as well as sponsor technology adoption programmes for local manufacturing firms abroad through the industrial development bank.
... Teoría Eclética del Comercio Internacional (Dunning, 1981;1988a;1988b; Su teoría expone una columna importante en el comercio internacional, el cual denominó: "El Riesgo de Inversión", el cual se desglosa en cuatro perspectivas: 1. La PYME industrial o manufacturera. 2. La empresa de alta tecnología "nacida global". ...
Resumen El presente artículo tiene como objetivo general caracterizar las principales teorías y autores de la logística y la internacionalización antes de la pandemia, y las estrategias que han utilizado en América Latina para tratar de contra-rrestar los efectos del Covid 19 en las cadenas de valor. La metodología es de corte cualitativa y el método es de revisión documental. La principal conclusión es que la pandemia ha reflejado las asimetrías del comercio mundial. Donde se pueden identificar organizaciones que se adaptan en relación con su parque empresarial y buscan la manera de sortear la contin-gencia, o las que no pudieron con la misma. Asimismo, se ha puesto como pivote la resiliencia de los empresas dentro de las cadenas globales, ya que el mundo que viene, las organizaciones que se sumerjan en los cambios que exige la cadena global de suministros competirán y se quedarán o ampliarán su nicho de mercado.
... Lastly, partnering-a major focus of international business-examines cross-border exchanges. Its evolution through American or European multinationals has resulted in the dominance of Western knowledge in international business (Dunning, 2012), even though partnering was a practice in the ancient empires (Devisse, 1988;Kenyatta, 1965). ...
The growth of management scholarship in Africa and the increasing role of history in management and organization (MO) education across the globe necessitate examination of historical events that inform MO in Africa. In this paper, I trace the historical trajectory of MO education from the traditional era, wherein ancient civilizations, empires, and kingdoms rife with commerce, education, and epistemologies were displaced, during the modern era, by colonialism and European domination, which contributed to the adoption and focus on Western education (management practice and knowledge systems). In the post-modern era, I propose reconfiguration of MO education based on greater societal embeddedness and a circular structure—integration of formal, non-formal, and informal education—consistent with the traditional principles and values of Africa on business conduct and education. I contend that the knowledge arising from the reconfiguration is more likely to be relevant and meaningful to the multiple constituents of Africa. It will also enable MO scholarship in the future to help rebalance the extant epistemic tilt.
... Here, the findings of the macro literature on the effects of FDI on growth offer important insights. Evidence not of an exogenous positive effect of FDI on 3. Hymer's approach was subsequently refined by, among other authors, Kindleberger (1969) and Caves (1974), and eventually rechristened the OLI (ownership advantage, location factor, internalization) framework in Dunning's (1981) work. For a description, see Antrà s and Yeaple (2014). ...
... Lý thuyết tăng trưởng nội sinh đã chỉ ra FDI thúc đẩy tăng trưởng kinh tế trong dài hạn thông qua kênh chuyển giao công nghệ; tích tụ vốn con người qua các khóa huấn luyện kỹ năng lao động cho nước sở tại (De Mello (1997). Ngoài ra, lý thuyết chiết trung của Dunning (1981) phân tích khác về mối quan hệ giữa tăng trưởng kinh tế và FDI đó là, việc thu hút FDI phụ thuộc vào lợi thế của nước nhận đầu tư gồm: lợi thế về sở hữu như công nghệ, vốn, nguồn lực…; lợi thế địa điểm như: môi trường đầu tư, lao động nhiều giá thấp…; và lợi thế nội bộ hóa. ...
Bài viết phân tích những ảnh hưởng của dịch bệnh Covid-19 đến nền kinh tế Việt Nam thông qua thực trạng hoạt động sản xuất kinh doanh của doanh nghiệp, xem xét các chính sách tài chính đã và đang được triển khai, đồng thời chỉ ra những hạn chế. Từ đó, đề xuất một số khuyến nghị về chính sách tài chính nhằm hỗ trợ doanh nghiệp ứng phó với đại dịch có hiệu quả trong thời gian tới.
... However, the internalization theory has only explained a portion of the foreign direct investment (e.g., Denisia, 2010). Therefore, Dunning (1980Dunning ( , 1981Dunning ( , 1988 came up with the eclectic paradigm based on the internalization theory (e.g., Rugman, 2010), used to analyze the motives and determinants of enterprises' foreign direct investment. Such a theory consists of ownership advantage, location advantage, and internalization advantage (e.g., Sethi, Guisinger, Phelan, & Berg, 2003). ...
By recognizing that foreign direct investments (FDI) are not only vital for advancing firms’ international competitiveness but also they have substantial impact on the national economy, the Chinese government started to encourage capital outflows. However, under the guidance of the “Opening up” policy, China's capital inflows remained far greater than capital outflows. Therefore, the Chinese government has issued a number of policies aimed at driving domestic enterprises to engage in outward foreign direct investment. The most prominent in this series of policies is the “Go globally” strategy and the “The Belt and Road” initiative. In this study, we critically analyze the two policies aiming to understand how China actually promotes the outward foreign direct investment (OFDI) of their domestic enterprises. Using policy analysis technique, we analyze the OFDI–related advantages that can be achieved to domestic enterprises under the influence of government policies. Furthermore, we investigated the impact of government policies on corporate foreign direct investment spinning from the Chinese economy. Our analysis shows that the Chinese government policies can promote OFDI for enterprise, where government support and encouragement schemes can stimulate local enterprises to expand globally. Importantly, the Chinese government use diplomacy to enable these local enterprises to understand the investment policies and institutional environment of host countries in advance, which in turn, drives the risk-taking potential of these enterprises. However, the Chinese government policies also have negative impacts on enterprises’ OFDI.
... Opportunity exploitation is the deployment of resources, actions and investments to realize recognized opportunities (Knight, 2001;Zahra et al., 2005;Foss and Klein, 2012;Dunning, 2013). Well-established and efficient institutions within the developed market may facilitate exploitation of opportunities (Hitt et al., 2005Wan, 2005;Wu and Deng, 2020). ...
... The literature on the determinants of FDIs can be divided into two main streams: the business-oriented, eclectic paradigm first proposed by Dunning (1973Dunning ( ,1981, and the economic-oriented approach, that can be referred originally to the seminal paper of Markusen (1984). According to the first strand of research, FDIs are explained by three major sets of determinants: (a) ownership advantages, suggesting that firms invest abroad if they have better know-how or organisational capacity compared with competitors in foreign countries; (b) location advantages, related to proximity to specific input or | 5 CIPOLLINA et AL. ...
Global value chains (GVCs) are a major feature of globalization, with a strong impact on the patterns of international trade. In this paper we study the link between GVCs and cross‐border mergers and acquisitions (M&As), testing the two symmetric hypotheses that a higher degree of participation in GVCs increases the probability that a firm acquires: (i) the producers of their imported inputs, or (ii) the users of their exported products. Our analysis is based on a unique dataset covering 12 supplier and user sectors, for over 22 investor countries and 47 target countries between 1995 and 2010. Estimating an augmented gravity equation model of cross‐border M&As, inflated with a large number of bilateral sector and country fixed effects, we find strong evidence of a positive and statistically significant impact of GVC participation on the total value of cross‐border M&As, although the economic impact is substantial only in the case of few sectors.
... 1 The Ownership-Location-Internationalisation Theory, known as OLI theory, which was developed by Dunning (1977Dunning ( , 1981Dunning ( , 1988) is accepted as more relevant and eclectical one when compared to the other theories that explain the reasons of FDI (for instance, Monopolistic Power Theory (of Hymer), Oligopolistic Reaction Theory (of Knickerbocker etc.) (Anil et al., 2011). It is described as the presence of ownership-specific competitive advantages in a transnational corporation (TNC), such as proprietary technology, which all stands for Ownership, the presence of locational advantages in a host country, such as large markets or lower costs of resources or superior infrastructure, which all stands for Location and the presence of superior commercial benefits in an intra-firm as against an arm's-length relationship between investor and recipient by internalization through FDI rather than arm's-length transactions, which all stands for Internationalisation, by connecting all the theories together (UNCTAD, 1998). ...
Foreign Direct Investment (FDI) and Tourism Sector are two significant factors both contributing to development, directly and indirectly, and also foreign exchange need of developing world. In this regard, the paper tries to determine if there is a relationship between FDI and tourism sector in the regard of the Jamaican case by using granger causality test. It can be said that Jamaica is a typical example, which is selected out of the developing world, in terms of both the importance of the tourism sector and FDI. According to the results within the framework of the econometric analysis, it is found out that Tourism Expenditures and FDI inflows are causally related, and the Granger causality is uni-directional running from FDI Inflows to Tourism Expenditures in the Jamaican Case. In other words, in Jamaica, FDI inflows are the cause and the tourism expenditures are the result, which can be theoretically expected. Since FDI inflows including the FDI in specifically tourism sector contribute to all the economy, by developing both tangible assets, such as infrastructure, and intangible assets, such as managerial skills of a country, it all contributes to the tourism sector as a service sector.
... The international business literature provides some notable exceptions, though. Following Dunning (1981), several scholars have developed theoretical models showing how firms' decisions to invest abroad are affected by the economic and political conditions of the host country (see Faeth, 2009 for a review). A key work in this area is Henisz (2000), which analyzes the relationship between political hazard and multinationals' entry mode. ...
Recent literature shows that the spike in uncertainty during political elections harms firms’ investment. Bridging insights from international business and political science, we argue that the effect of political elections on firms’ investment activities is contingent on the country’s electoral system. In particular, we expect the negative effect of elections on corporate investment to be smaller for firms operating in plurality systems. We test our theory using a panel dataset of listed firms around the world, and a panel of US multinationals. Our results confirm that during an election period, firms in countries with a plurality system reduce investment less than firms in other countries. Additionally, we show that multinationals’ foreign investment is affected by elections abroad: their investment in a host country declines during an election in that country, though to a lesser extent if the election is held with a plurality system. Collectively, our findings provide new evidence on the role of political institutions for firms’ investment decisions.
The study presents the innovative GDP Matrix method created by Dr. Vlad Reznikov for business development and market entry corporate decisions. When making a decision on market entry based on limiting factors such as the complexity of regulatory policies, estimated marketing costs, preliminary determination of the target consumer base, language barriers, or any other critical factor for the corporation, the proposed method enables the strategic allocation of business efforts toward countries where the proUit potential is highest. This method also allows the classiUication of these countries according to the cost-effectiveness and efUiciency of the required efforts. GDP Matrix is a bubble chart designed to elucidate the intricate relationships between GDP, PPP, and population data from the list of pre-sorted countries by categorizing countries into four quadrants-ROCKSTARS, HONEYBEES, MAVERICKS, and UNDERDOGS-the matrix offers strategic insights for global business development planning.
The study presents the innovative GDP Matrix method created by Dr. Vlad Reznikov for business development and market entry corporate decisions. When making a decision on market entry based on limiting factors such as the complexity of regulatory policies, estimated marketing costs, preliminary determination of the target consumer base, language barriers, or any other critical factor for the corporation, the proposed method enables the strategic allocation of business efforts toward countries where the profit potential is highest. This method also allows the classification of these countries according to the cost-effectiveness and efficiency of the required efforts. GDP Matrix is a bubble chart designed to elucidate the intricate relationships between GDP, PPP, and population data from the list of pre-sorted countries by categorizing countries into four quadrants—ROCKSTARS, HONEYBEES, MAVERICKS, and UNDERDOGS—the matrix offers strategic insights for global business development planning.
The study presents the innovative GDP Matrix method created by Dr. Vlad Reznikov for business development and market entry corporate decisions. When making a decision on market entry based on limiting factors such as the complexity of regulatory policies, estimated marketing costs, preliminary determination of the target consumer base, language barriers, or any other critical factor for the corporation, the proposed method enables the strategic allocation of business efforts toward countries where the proUit potential is highest. This method also allows the classiUication of these countries according to the cost-effectiveness and efUiciency of the required efforts. GDP Matrix is a bubble chart designed to elucidate the intricate relationships between GDP, PPP, and population data from the list of pre-sorted countries by categorizing countries into four quadrants-ROCKSTARS, HONEYBEES, MAVERICKS, and UNDERDOGS-the matrix offers strategic insights for global business development planning.
Literature reports that developed countries are expected to be in stage IV or V (high economic development) in the investment development path (IDP). Knowing the IDP stage of a country shows the cross-border attractiveness of the economy, the circuitousness of firms expanding beyond the home border, and an indication for the formulation of appropriate economic policies. As this theoretical proposition is based on the total economy, we investigated the plausibility of this theory for the agricultural sector in developed countries. Using the generalised least squares estimator, we employed data on 26 developed countries from 1990 to 2021. We found that developed countries’ agriculture is in the first phase of stage V. This is consistent with the theoretical background for developed countries regarding the total economy and demonstrates how the IDP theory for industrialised countries’ overall economies and their agricultural systems are compatible. Agricultural multinationals in developed countries must continue to get globalised through a more interlocking network of trans-border supportive arrangements such as production and market sharing. Moreover, additional acquisition of farm assets and development of the same would balance place-bound assets, leading to further fluctuation of the net outward foreign direct investment and creating smaller transient amplitudes of the curve.
This paper examines leadership in internationalization strategies for an asymmetric cost duopoly where firms choose between exports and foreign direct investment (FDI) in a sequential setting. The incentive to lead and to engage in FDI is stronger for the more efficient firm. With sequential choices and the efficient firm playing in advance, it is less likely that firms pick identical internationalization strategies in equilibrium, as compared with simultaneous choices; this is more so for greater cost asymmetry. It also happens for large enough oligopoly profitability when the inefficient firm plays in advance. Follow‐the‐leader behaviour in FDI arises for low values of the setup cost. Although entry in FDI by both firms is best for consumers, total welfare can be higher with opposite internationalization strategies. Were firms given the opportunity to lead or wait and enter later, the efficient firm would emerge as the leader in exports/FDI depending on the well‐known proximity‐concentration trade‐off. Interestingly, the less efficient firm might prefer to wait for strategic reasons.
Artykuł analizuje wpływ fiskalizmu na wzrost gospodarczy – kwestie ważne i aktualne we współczesnej gospodarce. Celem opracowania jest zaprezentowanie definicji i miar fiskalizmu oraz analiza wyników wybranych badań wpływu fiskalizmu na wzrost gospodarczy. Zastosowano metodę opisową wspartą także elementami metody analitycznej.
Cet article analyse les déterminants de localisation des IDE chinois et russes en Europe entre 2006 et 2017. Les IDE chinois et russes présentent certaines similitudes. Ils sont attirés par la technologie et l’innovation. Toutefois, contrairement aux EMN russes, les choix des investisseurs chinois sont aussi liés à l’existence d’opportunités offertes par le marché, notamment par la crise des subprimes. En revanche, les IDE russes sont davantage motivés par des considérations géopolitiques. L’impact des variables institutionnelles sur l’IDE chinois est contrasté tandis que les IDE russes ont été attirés par des institutions faibles.
Considering the growing significance of Eurasian economic ties because of South Korea’s New Northern Policy and Russia’s New Eastern Policy, this study investigates the motivations and locational factors of South Korean foreign direct investment (FDI) in three countries in the Commonwealth of Independent States (CIS: Kazakhstan, Russia, and Uzbekistan) by employing panel analysis (pooled ordinary least squares [OLS], fixed effects, random effects) using data from 1993 to 2017. The results show the positive and significant coefficients of GDP, resource endowments, and inflation. Unlike conventional South Korean outward FDI, labour-seeking is not defined as a primary purpose. Exchange rates, political rights, and civil liberties are identified as insignificant. The authors conclude that South Korean FDI in Kazakhstan, Russia, and Uzbekistan is associated with market-seeking (particularly in Kazakhstan and Russia) and natural resourceseeking, especially the former. From a policy perspective, our empirical evidence suggests that these countries’ host governments could implement mechanisms to facilitate the movement of goods across regions and countries to increase the attractiveness of small local markets. The South Korean government could develop financial support and risk sharing programmes to enhance natural resource-seeking investments and mutual exchange programmes to overcome the ‘red syndrome’ complex in South Korean society.
Foreign Direct Investment (FDI) inflow to Africa has unevenly distributed investment location choices of multinational enterprises because of some exogenous economic factors associated with the locations, which vary across countries in Africa. The data used in the paper comes from Financial Times, World Bank, African Development Bank. This paper investigated what determines the location choice of FDI inflow to Africa using data on 3,768 firms from 88 countries making location choices in 54 African countries using a multicategory logistic regression. The findings show that: (1) the natural resource seeking enterprises invest more in landlocked countries relative to manufacturing and tertiary sector; (2) the natural resource seeking firms are less concerned about local market size and location’s economic condition comparing to manufacturing and service industries; (3) despite the accusation against the multinational enterprises (MNEs) for exploiting Africa’s natural resources, most of the MNEs choose locations with a large market size and better economic development; (4) the MNEs from developed economies prefer the location with a large market size and a better-developed economy comparing to those from the developing economies.
The book covers different issues relating to commerce, finance, management and economics.
Factors influencing investment strategies of multinational enterprises are identified, particularly factors of COVID-19 pandemic, geopolitical stability, and national security. It is revealed that COVID-19 pandemic forces multinational enterprises to transform approaches to investment strategies towards stabilization and diversification of supply chains, robotization of production. It is determined that due to the need to comply with safe working conditions, investment in robotics development become an integral part of investment strategies. It has been determined that the offshoring strategy in the conditions of sustainability of trade and production relations has proved its effectiveness in reducing costs. However, during pandemic or trade war, the offshore strategy is less effective. Prospects of future development of investment strategies are determined, namely reshoring, diversification, regionalization, and replication. It is determined that due to the increase in the level of risks; new investment projects “from scratch” become less attractive. It is determined that multinational enterprises do not want to move production capacities, as it requires significant investments and losses from the relocation of production. It is revealed that geopolitical conflicts may transform investment strategies, stimulating relocation of production, such as reshoring and nearshoring. It has been determined that reshoring and nearshoring do not necessarily increase the stability of supply chains. It is determined that the import of industrial products from China to the USA is declining for several years in a row, and there is a shift of production from China to other countries. It is determined that the strategy of reindustrialization do not necessarily contribute to the growth of industrial production in the United States. It is determined that within the USA there are several problems concerning reindustrialization, including low return on investment in robotization of production and lack of qualified personnel. It is determined that the factor of national security becomes more important for the investment strategies of multinational enterprises in the conditions of unfolding economic contradictions.
L’objectif de cette recherche est de déterminer la nature de la relation entrel’internationalisation et la performance (RIP) de l’entreprise, sujet débattu depuis quarante ans,mais pourtant resté sans réponse concluante. Pour y parvenir, nous élaborons une approchetridimensionnelle à deux phases d’analyses : analytique et interactive. Dans la première, nousnous focalisons sur le degré d’internationalisation et sur l’impact individuel de chaque dimensiond’internationalisation pour déterminer la nature des «parties» de la RIP. Dans la deuxième,l’accent est mis sur le processus d’internationalisation et sur l’impact interactif des troisdimensions - largeur, profondeur, dispersion - d’internationalisation pour déterminer la nature del’«ensemble» de la RIP. Cette recherche, s’appuyant sur un échantillon de 69 grandes entreprisesinternationales françaises pour la période 2001-2007, clarifie la nature de la RIP en apportant lesnouveaux éléments théoriques et empiriques suivants : (i) Chaque dimensiond’internationalisation entretient sa propre relation curvilinéaire à trois phases avec laperformance ; (ii) La nature de la RIP est essentiellement régie par la nature de la relation entrela profondeur d’internationalisation et la performance, étant par conséquent curvilinéaire, ayanttrois phases et formant un S horizontal ; (iii) La relation en S horizontal entrel’internationalisation et la performance est modérée par la largeur d’internationalisation et parla dispersion d’internationalisation ; (iv) Le processus d’internationalisation l’emporte sur ledegré d’internationalisation dans l’explication de la performance.
International entrepreneurship has been studied extensively during the past decades. Oviatt’s and McDougall’s (J Int Bus Stud 25:45–64, 1994) framework describing international new ventures (INVs) has been pivotal in developing this research field. This paper adds to this research field through focusing on a particular type of INVs that typically regard social impact as the core objective rather than a positive side-effect to profit. We collectively label these firms international social ventures (ISV). The paper provides two interrelated contributions. Firstly, a literature review brings a systematic overview of the extant ISV research. Secondly, building on this, five propositions are developed in close relation to each of the essential elements positioned in Oviatt’s and McDougall’s (J Int Bus Stud 25:45–64, 1994) seminal INV framework. In doing so, we illustrate that ISVs share some general characteristics with INVs. However, the particular manifestation of these deviates from the traditional type of INVs. In addition, the underlying rationale differs from traditional pure economic logics by involving a combination of both social and economic logics. The paper proceeds to bring suggestions for future research.
Foreign direct investment (FDI) is a key element of the global economy, which is an engine of employment, technological progress, productivity improvements, and, ultimately, economic growth, especially within emerging countries. As an emerging country, India has attracted the attention of multinational enterprises in recent years. This study aims to explore a variety of foreign direct investment decision-making motives of multinational enterprises which have entered the market in India. Qualitative research methodology was incorporated in this study to investigate different FDI decision-making motives by means of interviews with the representatives of eight companies who hold enterprises in India in which the study findings regarding the various entry modes, location choices, strategies, opportunities and challenges faced by multinational entities in the Indian market were explored.
ResearchGate has not been able to resolve any references for this publication.