An Extended Eclectic Paradigm of Dunning: Impact of New International Business Processes
This paper develops and extended eclectic paradigm
to fit the firm internationalization process with the real international
business world. The approach is based on Dunning´s, introducing
new concepts like mode of entry, international joint venture o
international mergers and acquisitions. At the same time is presented
a model to describe the Spanish international mergers and
acquisitions in order to determinate the most important factor that
influence in this type of foreign direct investment.
[1] Caves, R.E. “International Corporations: The industrial Economics of
Foreign Investment”, New Series, Vol. 38, 149, pp. 1-27. 1971.
[2] Dunning, J.H. “Economic Analysis and multinational enterprise”,
Routledge Taylor & Francis Group, London & New York. 1974.
[3] Dunning, J.H. “Toward an eclectic theory of international production:
some empirical tests”. Journal of International Business Studies, Vol. 11,
pp. 9-31. 1981.
[4] Dunning, J.H. “The eclectic paradigm of international production: A
restatement and some possible extensions”, Journal of International
Business Studies, Vol. 19, pp. 1-31. 1988.
[5] Dunning, J.H. “The eclectic paradigm of international production: A
personal perspective”, in C.N. Pitelis and R. Sugden (Eds), The Nature
of Transnational Firm, London and New York: Routledge. 1991.
[6] Dunning, J.H. “Multinational Enterprises and the Global Economy”,
Wokingham, UK and Reading, MA: Addison Wesley. 1993.
[7] Dunning, J.H. “The eclectic paradigm of international production: A
restatement and some possible extensions”, Journal of International
Business Studies, Vol. 19, 1-31. 1988
[8] Dunning, J.H. & Rugman, A.R. “The influence of Hymer´s dissertation
on the theory of foreign direct investment”, The American Economic
Reviews, Vol. 75, 2, pp. 228-232. 1985.
[9] Buckley, P.J. “International technology transfer by small and medium
sized enterprises”, Small Business Economics, 9, pp. 67-78. 1997.
[10] Kojima, K. “Macroeconomic versus international business approach to
foreign direct investment”, Hitosubashi Journal of Economic, Vol. 23,
pp. 1-19. 1982.
[11] Rugman, A. “New theories of the multinational enterprise: An
assessment of internationalization theory”, Bulletin of Economic
Research, Vol. 38, pp. 102-118, 1986.
[12] Casson, M.C. “The firm and the market: Studies on multinational
entreprise and the scope of the firm”, First MIT Press, Great Britain,
1987.
[13] Kim, W.C. & Hwang, W.P. “Global Strategy and Multionationals´ Entry
Mode Choice”, Journal of International Business Studies, Vol. 23, pp-
29-53. 1992.
[14] Doz, Y.L. & Prahalad, C.K. “Managing DMNCs: A search for a new
paradigm”, Strategic Management Journal, Vol. 12, S1, pp. 145-164.
1991.
[15] Kogut, B. & Zander, U. “Knowledge of the firm, combinative
capabilities, and the replication of technology”, Organization Science,
Vol. 3, pp. 383-397. 1992
[16] Teece, J.D., Pisano, G. & Shuen, A. “Dynamic capabilities and strategic
management”, Strategic Management Journal, Vol. 18, 7, pp. 509-533.
1997.
[17] Madhok, A. & Phene, A. “The co-evolutional advantage: strategic
management theory and the eclectic paradigm”, International Journal of
Economics of Business, Vol. 8, 2, pp. 243-256. 2001.
[18] Maitland, E. & Nicholas S. “Modeling multinationals from small, open
economies”, International studies of management & organization, Vol.
32, 1, pp. 3-15, 2002.
[19] Yaprak, A. “The internationalization of emerging market business
groups: an integrated literature review”, International Marketing
Review, Vol. 27, 2, pp. 245-262. 2010.
[20] Verbeke, A. “A strategic managing analysis of ownership advantages in
the eclectic paradigm”, Multinational Business Review, Vol. 18, 2, pp.
89.108. 2010.
[21] Doz, Y.L. & Prahalad, C.K. “Managing DMNCs: A search for a new
paradigm”. Strategic Management Journal, Vol. 12, S1, pp. 145-164.
1991.
[22] Agarwal, S. & Ramaswami, S.N. “Choice of foreign market entry mode:
impact of ownership, location and internalization factors”, Journal of
International Business Studies, Vol. 23, 1, pp. 1-27.1992.
[23] Hill, C.W., Hwang, P. & Kim, C.W. “An eclectic theory of the choice of
international entry mode”, Strategic Management Journal, Vol. 11, pp.
117-128, 1990. [24] Johanson, J. & Vahlne, J.E. “The internationalization process of the
firm: a model of knowledge development and increasing foreign market
commitments”, Journal of International Business Studies, Vol. 8, pp. 23-
32. 1977.
[25] Dunning, J.H. “The eclectic paradigm of international production: A
restatement and some possible extensions”, Journal of International
Business Studies, Vol. 19, 1-31. 1988.
[26] Dunning, J.H. “External sources of innovative capabilities: The
preferences for strategic alliances or mergers and acquisitions”, Journal
of Management Studies, Vol. 39, 2, pp. 167-188. 2002.
[27] Dunning, J.H. “Alliance capitalism and global business”. London and
New York Routledge. 1996.
[28] Dunning, J.H. “Towards a general paradigm of foreign direct and
foreign portfolio investment”. Transnational Corporations, Vol. 8, pp. 1-
52. 1999.
[29] Dunning, J.H. “The eclectic paradigm as an envelope for economic and
business theories of MNE activity”. International Business Review, Vol.
9, pp. 163-190. 2000.
[30] Dunning, J.H. “Relational assets, networks and international business
activity”, in F. Contractor and P. Lorange (eds) Cooperative Strategies
and Alliances, Oxford: Elvesier: pp. 569-595. 2003.
[31] Guisinger, S. “From OLI to OLMA: Incorporating Higher Levels of
Environmental and Structural Complexity into the Eclectic Paradigm”.
International Journal of the Economics of Business, Vol. 8, pp. 257-272.
2001.
[32] Buckley, P.J. & Casson, M.C. “The future of multinational enterprise”.
Holmes and Meier, London. 1976.
[33] Anderson, E. & Gatignon, H. “Modes of foreign entry: A transaction
cost analysis and propositions”, Journal of International Business
Studies, Vol. 17, 3, pp. 1-26. 1986.
[34] Hennart, J.F. “A theory of multinational enterprise”. University of
Michigan Press, Ann Arbor, MI, 1982.
[35] Erramilli, M.K.; Rao, C.P. “Service Firms’ International Entry-Mode
Choice: A Modified Transaction-Cost Analysis Approach”, Journal of
Marketing, vol. 57, nº 3, pp.19-38. 1993.
[36] Kim, C., Hwang, P. & Burgers, W.P. “Multinationals diversification and
the risk return trade-off, Strategic Management Journal, Vol. 14, pp.
275-287, 1993.
[37] Duran Herrera, J.J. “Empresa multinational e inversión directa española
en el exterior, Universia Business Review, S3, pp. 114-123. 2004.
[38] Dunning, J.H. “The eclectic paradigm of international production: A
restatement and some possible extensions”, Journal of International
Business Studies, Vol. 19, 1-31. 1988.
[39] Dunning, J.H. “The eclectic paradigm of international production: A
restatement and some possible extensions”, Journal of International
Business Studies, Vol. 19, 1-31. 1988.
[40] Dunning, J.H. “The eclectic paradigm as an envelope for economic and
business theories of MNE activity”. International Business Review, Vol.
9, pp. 163-190. 2000
[41] Jensen, M.C. “The takeover controversy”, Executive Speeches, Vol. 2,
10, pp. 1-15, 1988.
[42] Bhagat, S., Shleifer, A., Vishny, R.W., Jarrel, G. & Summers, L.
“Hostile takeovers in the 1980s: The return to corporate specialization”,
Brooking Papers on Economic Activity Microeconomics, Vol. 19, pp. 1-
84. 1990.
[43] Hagedoorn, J. & Duysters, G. “External sources of innovative
capabilities: The preferences for strategic alliances or mergers and
acquisitions”, Journal of Management Studies, Vol. 39, 2, pp. 167-188.
2002.
[44] Caves, R.E. “Mergers, takeovers and economic efficiency: Foresigth vs
hindsight”, International Journal of Industrial Organization, Vol. 7, 1,
pp. 151-174. 1989.
[45] Penrose, E.T. “The theory of the growth of the firm”, New York: John
Wiley. 1959.
[46] Brickley, J.A., Smith, C.W. & Zimmerman, J.L. “Management fads and
organizational architecture”, Journal of Applied Corporate Finance, Vol.
10, 2, pp. 24-39. 1997.
[47] Casson, M.C. “The firm and the market: Studies on multinational
entreprise and the scope of the firm”, First MIT Press, Great Britain,
1987.
[48] Hagedoorn, J. & Duysters, G. “External sources of innovative
capabilities: The preferences for strategic alliances or mergers and
acquisitions”, Journal of Management Studies, Vol. 39, 2, pp. 167-188.
2002.
[49] “Internacionalización de la Empresa Española. Cooperación
empresarial”, Spanish Chammber of Trade, Madrid, 2007.
[50] Ketelhöhn, N. & Marin, J.N. “Determinantes de éxito en fusiones y
adquisiones”, INCAE Business Review, Vol. 1, 7, pp. 16-23. 2009.
[51] Loderer, C. “Executive stock ownership and performance tracking faint
traces, Journal of financial economics”, Vol. 45, 2, pp. 223-255. 1997.
[52] Ofek, E. “Capital structure and firm response to poor performance: An
empirical analysis”, Journal of Financial Economics, Vol. 34, 1, pp. 3-
30. 2002.
[53] Clark, L.H. & Malabre, A.L. “Slow rise in outlays for research imperils
US competitive edge”, Wall Street Journal, 16, pp. A1 - A5, 1988.
[54] Lubatkin, L. “Mergers and the performance of the acquiring firm”, The
Academy of Management Review, Briarcliff Manor, 1983.
[55] Biggadike, R. “The risky business of diversification”, Harvard Business
Review, Vol. 57, 3, pp. 103-111. 1979.
[56] Hitt, M.A. & Hoskisson, R.E. “Mergers and acquisitions and managerial
commitment to innovation in M-form firms. Strategic Management
Journal, Vol. 11, 4, pp. 1-29. 1990.
[57] Balakrishnan, S. “Asset specificity, firm heterogeneity and capital
structure”, Strategic Management Journal, Vol. 14, 1, pp. 3-16. 1993
[58] Shelton, L.M. “Strategic business fits and corporate acquisition:
Empirical evidence, Strategic Management Journal, Vol. 9, 3, pp. 279-
287.1988.
[59] Myers, S. & Majluf, N. “Corporate financing and investment decisions
when firms have information that investors do not have”, Journal of
Financial Economics, Vol. 13, pp. 187-221. 1984.
[60] Williamson, O.E. “Strategizing, economizing and economic
organization”, Strategic Management Journal, Vol. 12, 2, pp. 75-94.
1991.
[1] Caves, R.E. “International Corporations: The industrial Economics of
Foreign Investment”, New Series, Vol. 38, 149, pp. 1-27. 1971.
[2] Dunning, J.H. “Economic Analysis and multinational enterprise”,
Routledge Taylor & Francis Group, London & New York. 1974.
[3] Dunning, J.H. “Toward an eclectic theory of international production:
some empirical tests”. Journal of International Business Studies, Vol. 11,
pp. 9-31. 1981.
[4] Dunning, J.H. “The eclectic paradigm of international production: A
restatement and some possible extensions”, Journal of International
Business Studies, Vol. 19, pp. 1-31. 1988.
[5] Dunning, J.H. “The eclectic paradigm of international production: A
personal perspective”, in C.N. Pitelis and R. Sugden (Eds), The Nature
of Transnational Firm, London and New York: Routledge. 1991.
[6] Dunning, J.H. “Multinational Enterprises and the Global Economy”,
Wokingham, UK and Reading, MA: Addison Wesley. 1993.
[7] Dunning, J.H. “The eclectic paradigm of international production: A
restatement and some possible extensions”, Journal of International
Business Studies, Vol. 19, 1-31. 1988
[8] Dunning, J.H. & Rugman, A.R. “The influence of Hymer´s dissertation
on the theory of foreign direct investment”, The American Economic
Reviews, Vol. 75, 2, pp. 228-232. 1985.
[9] Buckley, P.J. “International technology transfer by small and medium
sized enterprises”, Small Business Economics, 9, pp. 67-78. 1997.
[10] Kojima, K. “Macroeconomic versus international business approach to
foreign direct investment”, Hitosubashi Journal of Economic, Vol. 23,
pp. 1-19. 1982.
[11] Rugman, A. “New theories of the multinational enterprise: An
assessment of internationalization theory”, Bulletin of Economic
Research, Vol. 38, pp. 102-118, 1986.
[12] Casson, M.C. “The firm and the market: Studies on multinational
entreprise and the scope of the firm”, First MIT Press, Great Britain,
1987.
[13] Kim, W.C. & Hwang, W.P. “Global Strategy and Multionationals´ Entry
Mode Choice”, Journal of International Business Studies, Vol. 23, pp-
29-53. 1992.
[14] Doz, Y.L. & Prahalad, C.K. “Managing DMNCs: A search for a new
paradigm”, Strategic Management Journal, Vol. 12, S1, pp. 145-164.
1991.
[15] Kogut, B. & Zander, U. “Knowledge of the firm, combinative
capabilities, and the replication of technology”, Organization Science,
Vol. 3, pp. 383-397. 1992
[16] Teece, J.D., Pisano, G. & Shuen, A. “Dynamic capabilities and strategic
management”, Strategic Management Journal, Vol. 18, 7, pp. 509-533.
1997.
[17] Madhok, A. & Phene, A. “The co-evolutional advantage: strategic
management theory and the eclectic paradigm”, International Journal of
Economics of Business, Vol. 8, 2, pp. 243-256. 2001.
[18] Maitland, E. & Nicholas S. “Modeling multinationals from small, open
economies”, International studies of management & organization, Vol.
32, 1, pp. 3-15, 2002.
[19] Yaprak, A. “The internationalization of emerging market business
groups: an integrated literature review”, International Marketing
Review, Vol. 27, 2, pp. 245-262. 2010.
[20] Verbeke, A. “A strategic managing analysis of ownership advantages in
the eclectic paradigm”, Multinational Business Review, Vol. 18, 2, pp.
89.108. 2010.
[21] Doz, Y.L. & Prahalad, C.K. “Managing DMNCs: A search for a new
paradigm”. Strategic Management Journal, Vol. 12, S1, pp. 145-164.
1991.
[22] Agarwal, S. & Ramaswami, S.N. “Choice of foreign market entry mode:
impact of ownership, location and internalization factors”, Journal of
International Business Studies, Vol. 23, 1, pp. 1-27.1992.
[23] Hill, C.W., Hwang, P. & Kim, C.W. “An eclectic theory of the choice of
international entry mode”, Strategic Management Journal, Vol. 11, pp.
117-128, 1990. [24] Johanson, J. & Vahlne, J.E. “The internationalization process of the
firm: a model of knowledge development and increasing foreign market
commitments”, Journal of International Business Studies, Vol. 8, pp. 23-
32. 1977.
[25] Dunning, J.H. “The eclectic paradigm of international production: A
restatement and some possible extensions”, Journal of International
Business Studies, Vol. 19, 1-31. 1988.
[26] Dunning, J.H. “External sources of innovative capabilities: The
preferences for strategic alliances or mergers and acquisitions”, Journal
of Management Studies, Vol. 39, 2, pp. 167-188. 2002.
[27] Dunning, J.H. “Alliance capitalism and global business”. London and
New York Routledge. 1996.
[28] Dunning, J.H. “Towards a general paradigm of foreign direct and
foreign portfolio investment”. Transnational Corporations, Vol. 8, pp. 1-
52. 1999.
[29] Dunning, J.H. “The eclectic paradigm as an envelope for economic and
business theories of MNE activity”. International Business Review, Vol.
9, pp. 163-190. 2000.
[30] Dunning, J.H. “Relational assets, networks and international business
activity”, in F. Contractor and P. Lorange (eds) Cooperative Strategies
and Alliances, Oxford: Elvesier: pp. 569-595. 2003.
[31] Guisinger, S. “From OLI to OLMA: Incorporating Higher Levels of
Environmental and Structural Complexity into the Eclectic Paradigm”.
International Journal of the Economics of Business, Vol. 8, pp. 257-272.
2001.
[32] Buckley, P.J. & Casson, M.C. “The future of multinational enterprise”.
Holmes and Meier, London. 1976.
[33] Anderson, E. & Gatignon, H. “Modes of foreign entry: A transaction
cost analysis and propositions”, Journal of International Business
Studies, Vol. 17, 3, pp. 1-26. 1986.
[34] Hennart, J.F. “A theory of multinational enterprise”. University of
Michigan Press, Ann Arbor, MI, 1982.
[35] Erramilli, M.K.; Rao, C.P. “Service Firms’ International Entry-Mode
Choice: A Modified Transaction-Cost Analysis Approach”, Journal of
Marketing, vol. 57, nº 3, pp.19-38. 1993.
[36] Kim, C., Hwang, P. & Burgers, W.P. “Multinationals diversification and
the risk return trade-off, Strategic Management Journal, Vol. 14, pp.
275-287, 1993.
[37] Duran Herrera, J.J. “Empresa multinational e inversión directa española
en el exterior, Universia Business Review, S3, pp. 114-123. 2004.
[38] Dunning, J.H. “The eclectic paradigm of international production: A
restatement and some possible extensions”, Journal of International
Business Studies, Vol. 19, 1-31. 1988.
[39] Dunning, J.H. “The eclectic paradigm of international production: A
restatement and some possible extensions”, Journal of International
Business Studies, Vol. 19, 1-31. 1988.
[40] Dunning, J.H. “The eclectic paradigm as an envelope for economic and
business theories of MNE activity”. International Business Review, Vol.
9, pp. 163-190. 2000
[41] Jensen, M.C. “The takeover controversy”, Executive Speeches, Vol. 2,
10, pp. 1-15, 1988.
[42] Bhagat, S., Shleifer, A., Vishny, R.W., Jarrel, G. & Summers, L.
“Hostile takeovers in the 1980s: The return to corporate specialization”,
Brooking Papers on Economic Activity Microeconomics, Vol. 19, pp. 1-
84. 1990.
[43] Hagedoorn, J. & Duysters, G. “External sources of innovative
capabilities: The preferences for strategic alliances or mergers and
acquisitions”, Journal of Management Studies, Vol. 39, 2, pp. 167-188.
2002.
[44] Caves, R.E. “Mergers, takeovers and economic efficiency: Foresigth vs
hindsight”, International Journal of Industrial Organization, Vol. 7, 1,
pp. 151-174. 1989.
[45] Penrose, E.T. “The theory of the growth of the firm”, New York: John
Wiley. 1959.
[46] Brickley, J.A., Smith, C.W. & Zimmerman, J.L. “Management fads and
organizational architecture”, Journal of Applied Corporate Finance, Vol.
10, 2, pp. 24-39. 1997.
[47] Casson, M.C. “The firm and the market: Studies on multinational
entreprise and the scope of the firm”, First MIT Press, Great Britain,
1987.
[48] Hagedoorn, J. & Duysters, G. “External sources of innovative
capabilities: The preferences for strategic alliances or mergers and
acquisitions”, Journal of Management Studies, Vol. 39, 2, pp. 167-188.
2002.
[49] “Internacionalización de la Empresa Española. Cooperación
empresarial”, Spanish Chammber of Trade, Madrid, 2007.
[50] Ketelhöhn, N. & Marin, J.N. “Determinantes de éxito en fusiones y
adquisiones”, INCAE Business Review, Vol. 1, 7, pp. 16-23. 2009.
[51] Loderer, C. “Executive stock ownership and performance tracking faint
traces, Journal of financial economics”, Vol. 45, 2, pp. 223-255. 1997.
[52] Ofek, E. “Capital structure and firm response to poor performance: An
empirical analysis”, Journal of Financial Economics, Vol. 34, 1, pp. 3-
30. 2002.
[53] Clark, L.H. & Malabre, A.L. “Slow rise in outlays for research imperils
US competitive edge”, Wall Street Journal, 16, pp. A1 - A5, 1988.
[54] Lubatkin, L. “Mergers and the performance of the acquiring firm”, The
Academy of Management Review, Briarcliff Manor, 1983.
[55] Biggadike, R. “The risky business of diversification”, Harvard Business
Review, Vol. 57, 3, pp. 103-111. 1979.
[56] Hitt, M.A. & Hoskisson, R.E. “Mergers and acquisitions and managerial
commitment to innovation in M-form firms. Strategic Management
Journal, Vol. 11, 4, pp. 1-29. 1990.
[57] Balakrishnan, S. “Asset specificity, firm heterogeneity and capital
structure”, Strategic Management Journal, Vol. 14, 1, pp. 3-16. 1993
[58] Shelton, L.M. “Strategic business fits and corporate acquisition:
Empirical evidence, Strategic Management Journal, Vol. 9, 3, pp. 279-
287.1988.
[59] Myers, S. & Majluf, N. “Corporate financing and investment decisions
when firms have information that investors do not have”, Journal of
Financial Economics, Vol. 13, pp. 187-221. 1984.
[60] Williamson, O.E. “Strategizing, economizing and economic
organization”, Strategic Management Journal, Vol. 12, 2, pp. 75-94.
1991.
@article{"International Journal of Business, Human and Social Sciences:69376", author = "D. de Matías Batalla", title = "An Extended Eclectic Paradigm of Dunning: Impact of New International Business Processes", abstract = "This paper develops and extended eclectic paradigm
to fit the firm internationalization process with the real international
business world. The approach is based on Dunning´s, introducing
new concepts like mode of entry, international joint venture o
international mergers and acquisitions. At the same time is presented
a model to describe the Spanish international mergers and
acquisitions in order to determinate the most important factor that
influence in this type of foreign direct investment.
", keywords = "Dunning, eclectic paradigm, foreign direct
investment, IJV, international business, international management,
multinational firms, firm internationalization process, M&A.", volume = "9", number = "2", pages = "615-8", }
