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The Co-evolutional Advantage: Strategic Management Theory and the Eclectic Paradigm

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  • Anoop Madhok
  • Anupama Phene

Abstract

The eclectic paradigm has been one of the leading frameworks for explaining multinational activity over the past two decades. Yet recent trends in international business pose a challenge to the explanatory power of the paradigm. Strategic management theory, with its focus on performance differences between firms, provides a useful complement to the OLI framework in understanding the activities of the modern multinational. In particular, global competition and the management of a firm's global stocks and flows of knowledge merit closer attention.The advent of global competition requires us to shift from the existing institutional perspective of comparisons of firms and markets or of foreign firms and local firms to a firm-level perspective of comparisons of the multinational firm to its global competitors. It also necessitates a focus on firm-level capabilities in knowledge management relative to competitors, the development of these capabilities involving both macro and micro co-evolutionary processes. Our arguments incorporate these changes to extend the OLI paradigm to accommodate both an economic and a strategic management perspective.

Suggested Citation

  • Anoop Madhok & Anupama Phene, 2001. "The Co-evolutional Advantage: Strategic Management Theory and the Eclectic Paradigm," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(2), pages 243-256.
    • Handle: RePEc:taf:ijecbs:v:8:y:2001:i:2:p:243-256
    DOI: 10.1080/13571510110051478
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    3. Chris Wagner, 2020. "Deducing a state-of-the-art presentation of the Eclectic Paradigm from four decades of development: a systematic literature review," Management Review Quarterly, Springer, vol. 70(1), pages 51-96, February.
    4. Giroud, Axèle & Scott-Kennel, Joanna, 2009. "MNE linkages in international business: A framework for analysis," International Business Review, Elsevier, vol. 18(6), pages 555-566, December.
    5. Narula, R. & Martinez-Noya, A., 2014. "International R&D alliances by firms: Origins and development," MERIT Working Papers 2014-058, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Albers, Sascha & Heuermann, Caroline & Koch, Benjamin, 2009. "International market entry strategies of EU and Asia-Pacific low fare airlines," Working Paper Series 106, University of Cologne, Department of Business Policy and Logistics.
    7. Carla Millar & Chong-Ju Choi & Philip Cheng, 2009. "Co-Evolution: Law and Institutions in International Ethics Research," Journal of Business Ethics, Springer, vol. 87(4), pages 455-462, July.

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