Multinational enterprise competition: Grounding the eclectic paradigm of foreign production in resource-advantage theory

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Abstract

Purpose: This paper seeks to explicate a dynamic theory of competition, i.e. the resource-advantage theory of competition, with the aim of developing a theoretical foundation for the eclectic paradigm of foreign production. Design/methodology/approach: The paper is conceptual in approach. Findings: The paper develops a set of five criteria that should be met by any theory that attempts to ground the eclectic paradigm. In addition, it demonstrates that the resource-advantage theory of competition meets all of these criteria. Research limitations/implications: By providing a theoretical foundation for the eclectic paradigm of foreign production, the paper provides researchers with a broader perspective from which to investigate multinational enterprise competition. Originality/value: The usefulness of frameworks, such as the eclectic paradigm of foreign production, is limited when they are not grounded in positive theories. By grounding the eclectic paradigm of foreign production, this paper enhances the paradigm's usefulness.

Original languageEnglish
Pages (from-to)572-581
Number of pages10
JournalJournal of Business and Industrial Marketing
Volume27
Issue number7
DOIs
StatePublished - Aug 2012

Keywords

  • Eclectic paradigm
  • Multinational enterprise competition
  • Production management
  • Resource management
  • Resource-advantage theory

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