IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Inter-firm alliance and network relationships and the eclectic paradigm of international production: an exploratory analysis of quasi-internalisation at the subsidiary level

  • Scott-Kennel, Joanna
  • Enderwick, Peter
Registered author(s):

    At a conceptual level, the eclectic paradigm of international production has evolved in response to the growth of inter-firm alliances and networks. Yet, there is little empirical research on the nature, extent and compatibility of external network relationships formed at the subsidiary level to support this development. We propose that these relationships may be incorporated into the eclectic paradigm by measuring the extent of quasi-internalisation (transfer) of firm-specific advantages and resources between the subsidiary and local customers, suppliers, and alliance partners. Two distinctive features of this paper are observation of quasi-internalisation via subsidiary-network relationships, and exploration of the complementarity of quasi-internalisation with FDI. The study is based on data concerning 516 foreign subsidiaries headquartered in New Zealand. Our results indicate that quasi-internalisation of resources occurs via external network relationships, and complements FDI by allowing the subsidiary to become an organiser of both internal and external resources.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 13 (2004)
    Issue (Month): 4 (August)
    Pages: 425-445

    in new window

    Handle: RePEc:eee:iburev:v:13:y:2004:i:4:p:425-445
    Contact details of provider: Web page:

    Order Information: Postal:

    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.:

    as in new window
    1. John Cantwell & Rajneesh Narula, 2001. "The Eclectic Paradigm in the Global Economy," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(2), pages 155-172.
    2. Peter J Buckley & Mark C Casson, 1998. "Analyzing Foreign Market Entry Strategies: Extending the Internalization Approach," Journal of International Business Studies, Palgrave Macmillan, vol. 29(3), pages 539-561, September.
    3. Forsgren, Mats & Pedersen, Torben & Foss, Nicolai J., 1999. "Accounting for the strengths of MNC subsidiaries: the case of foreign-owned firms in Denmark," International Business Review, Elsevier, vol. 8(2), pages 181-196, April.
    4. David A Griffith & Michael G Harvey, 2001. "A Resource Perspective of Global Dynamic Capabilities," Journal of International Business Studies, Palgrave Macmillan, vol. 32(3), pages 597-606, September.
    5. John Dunning, 2001. "The Eclectic (OLI) Paradigm of International Production: Past, Present and Future," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(2), pages 173-190.
    6. John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan, vol. 26(3), pages 461-491, September.
    7. Alan Rugman, 1980. "Internalization as a general theory of foreign direct investment: A re-appraisal of the literature," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 116(2), pages 365-379, June.
    8. Chetty, Sylvie K. & Wilson, Heather I. M., 2003. "Collaborating with competitors to acquire resources," International Business Review, Elsevier, vol. 12(1), pages 61-81, February.
    9. Narula Rajneesh & Sadowski Bert M., 1998. "Technological catch-up and strategic technology partnering in developing countries," Research Memorandum 001, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    10. Inge Ivarsson, 1999. "Competitive Industry Clusters and Inward TNC Investments: The Case of Sweden," Regional Studies, Taylor & Francis Journals, vol. 33(1), pages 37-49.
    11. Inkpen, Andrew, 1998. "Learning, knowledge acquisition, and strategic alliances," European Management Journal, Elsevier, vol. 16(2), pages 223-229, April.
    12. García-Canal, Esteban & Duarte, Cristina López & Criado, Josep Rialp & Llaneza, Ana Valdés, 2002. "Accelerating international expansion through global alliances: a typology of cooperative strategies," Journal of World Business, Elsevier, vol. 37(2), pages 91-107, July.
    13. Nielsen, Bo Bernhard, 2000. "Strategic Knowledge Management: A Research Agenda," Working Papers 2-2000, Copenhagen Business School, Department of International Economics and Management.
    14. Stephen Guisinger, 2001. "From OLI to OLMA: Incorporating Higher Levels of Environmental and Structural Complexity into the Eclectic Paradigm," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(2), pages 257-272.
    15. Schmid, Stefan & Schurig, Andreas, 2003. "The development of critical capabilities in foreign subsidiaries: disentangling the role of the subsidiary's business network," International Business Review, Elsevier, vol. 12(6), pages 755-782, December.
    16. Paterson, S. L. & Brock, D. M., 2002. "The development of subsidiary-management research: review and theoretical analysis," International Business Review, Elsevier, vol. 11(2), pages 139-163, April.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:13:y:2004:i:4:p:425-445. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.