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The Eclectic Paradigm in the Global Economy

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Author Info
John Cantwell, Rajneesh Narula

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Abstract

Economic globalisation and the subsequent growth of global and alliance capitalism have fundamentally affected the way in which MNC activities are undertaken and organised. The various contributions to this special issue have evaluated the eclectic paradigm in the global economy, and its validity as a theoretical basis to understand these developments. This paper places these contributions into context. We highlight that globalisation has increased the interactive dynamics between and among 'O', 'L' and 'I' characteristics at firm, industry and country level, in at least two ways. First, a knowledge-based society has meant that the efficient exploitation of MNCs' ownership advantages and the continual need to augment and sustain their competitive advantages is ever more crucial, leading to a complex interdependence between ownership and location advantages. Second, globalisation has affected how MNCs seek to organise their cross-border activities coherently in response to changing boundaries of the firm. We find that the paradigm continues to provide a framework which facilitates how best to synthesise relevant complementary theories, or how to choose between potentially competing theories, and helps to operationalise them.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal International Journal of the Economics of Business.

Volume (Year): 8 (2001)
Issue (Month): 2 (July)
Pages: 155-172
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Handle: RePEc:taf:ijecbs:v:8:y:2001:i:2:p:155-172

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Related research
Keywords: Eclectic Paradigm Mncs Internationalisation Technological Change Economic Development Asset Augmentation Innovation Alliances Transaction Cost Theory;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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    Other versions:
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Narula,Rajneesh & Marin,Anabel, 2003. "FDI spillovers, absorptive capacities and human capital development: evidence from Argentina," Research Memoranda 018, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
  2. Michel, Julie, 2007. "The effects of FDI in R&D on home countries, the case of Switzerland," MPRA Paper 6400, University Library of Munich, Germany. [Downloadable!]
  3. Davide Castellani, 2001. "Firms’ technological trajectories and the creation of foreign subsidiaries," International Trade 0108003, EconWPA. [Downloadable!]
    Other versions:
  4. Ronaldo Villa Borges & Virginie Jacquier-Roux & Christian Le Bas, 2006. "Echelle et variété de l'attractivité technologique d'une région, l'exemple de Rhône-Alpes," Post-Print halshs-00372738_v1, HAL. [Downloadable!]
  5. Sourafel Girma, 2003. "Absorptive capacity and productivity spillovers From FDI: a threshold regression analysis," European Economy Group Working Papers 25, European Economy Group. [Downloadable!]
    Other versions:
  6. Heinz Hollenstein, 2008. "Characteristics of Foreign R&D Strategies of Swiss Firms. Implications for Policy," WIFO Working Papers 315, WIFO. [Downloadable!]
    Other versions:
  7. Narula ,Rajneesh & Marin ,Anabel, 2005. "Exploring the relationship between direct and indirect spillovers from FDI in Argentina," Research Memoranda 024, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
  8. Spyros Arvanitis & Heinz Hollenstein, 2006. "Determinants of Swiss Firms’ R&D Activities at Foreign Locations: An Empirical Analysis Based on Firm-level Data," Working papers 06-127, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
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