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Developing the eclectic paradigm as a model of global strategy: An application to the impact of the Sep. 11 terrorist attacks on MNE performance levels

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  • Li, Sali
  • Tallman, Stephen B.
  • Ferreira, Manuel P.

Abstract

We expand the eclectic paradigm into a model of global strategic management and apply the latter to the analysis of the impact of the Sep. 11th terrorist attacks on the MNEs' performance to investigate the effect of exogenous shocks on the global strategies of firms. First, we integrate MNE resources and capabilities, strategy, and structure with the eclectic paradigm. Then we focus specifically on location attractiveness to examine how MNEs adjust internal factors with the exogenous distortions caused by an extreme environmental shock. We suggest that this adjustment is carried out at four levels: resources and capabilities, strategy, structure, and choice of location which jointly determine MNEs' performance. Although we restrict the application of this model of global strategic management to the post-Sep. 11th, our model may be applied to other extreme events that change, at least partly, the worldwide, or regional, economic order.

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  • Li, Sali & Tallman, Stephen B. & Ferreira, Manuel P., 2005. "Developing the eclectic paradigm as a model of global strategy: An application to the impact of the Sep. 11 terrorist attacks on MNE performance levels," Journal of International Management, Elsevier, vol. 11(4), pages 479-496, December.
    • Handle: RePEc:eee:intman:v:11:y:2005:i:4:p:479-496
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