Dunning's Eclectic Paradigm

—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.

This article introduces the open question about an update of the eclectic paradigm, on the occasion of new ways in which multinational firms invest abroad which have emerged in the last decades of the 20th century. It develops a theoretical review of all the theories that have been developed up to day focusing on the development of the OLI paradigm of Dunning and its contrast with the real patterns of internationalization. The lack of empirical validation raises the question about the inadequacy of this model developed several decades ago to explain the current reality of multinational firms.

Pe piața produselor de îmbrăcăminte, regăsim două firme aflate în competiția pentru primul loc mondial ce aplică modele de business diferite și cu toate acestea obțin rezultate remarcabile.
Este vorba de Zara și H&M: prima se bazează pe internalizarea operațiunilor, ducând o politică de zero publicitate, în timp ce H&M își externalizează producția și implică chiar și vedete în acțiunile sale de promovare (Beyonce, Vanessa Paradis și Lana del Ray).
Lucrarea de față își propune să încerce să explice de ce două firme care acționează în același mediu, sub aceleași condiții, au ales un model de business diferit. Setul de capabilități specifice ale celor două companii a fost realizat în baza studiilor teoretice existente, a industriei de îmbrăcăminte și a rapoartelor de activitate publicate de ambele firme. Acest set explică parțial alegerea direcției de business a firmelor.

This paper discusses Japanese motor vehicle manufacturing investment and state intervention measures in the Australian market. Australia’s auto industry is an extension of global motor vehicle manufacturers with a small number of domestic manufacturing firms that form a part of the global supply chain.  Toyota Motor Corporation, Mitsubishi Motor Corporation, General Motors Corporation and Ford Motor Company all have had extensive investments in the Australian market.  In the past, the Australian market was also a host to investments from Volkswagen AG, Chrysler LLC, Nissan Motor Company Limited and British Leyland Motor Corporation.  The size of the industry has shrunk recently with the March 2008 shut down of manufacturing by Mitsubishi Motors Australia Limited (MMAL), not long after the company’s emergence from a long and significant restructuring.  Still, the auto industry remains the largest single manufacturing sector in Australia both in terms of investment levels and the number of people employed.  Thus, Japanese auto manufacturing investment in Australia require an evaluation, now that the federal government has completed the 2008 ‘Review of Australia’s Automotive Industry’.  The paper focuses on Toyota Motor Corporation Australia (TMC Australia) in Victoria and (the recently shut down) MMAL in South Australia.

This article introduces the open question about an update of the eclectic paradigm, on the occasion of new ways in which multinational firms invest abroad which have emerged in the last decades of the 20th century. It develops a theoretical review of all the theories that have been developed up to day focusing on the development of the OLI paradigm of Dunning and its contrast with the real patterns of internationalization. The lack of empirical validation raises the question about the inadequacy of this model developed several decades ago to explain the current reality of multinational firms

En este artículo se presenta la pregunta abierta acerca de una actualización del paradigma ecléctico, con motivo de las nuevas formas en las que se puede invertir en otro país y que han emergido con fuerza desde la última década del siglo xx. A través de una revisión teórica de todas las teorías habidas hasta la fecha, el desarrollo del modelo OLI de JH Dunning y su contraposición con la realidad que nos envuelve, se plantea la inadecuación de este modelo desarrollado hace varias décadas para explicar la realidad de la empresas multinacionles desde finales del siglo xx.

本文では、オーストラリアにおける日本型ハイブリッド工場モデルの構成は何か、そしてそれは実行可能な”アングロ-サクソンパターン”に一致するかということを提起し、この重要な提言についてオーストラリアにおける日本的経営と生産の実践を評価している。また本文では、オーストラリアにおける社会経営環境が日本のそれと極めて異なっていることを議論している。本文では、安保哲夫教授によって開発されたハイブリッド評価手法とその海外への日本型システムの移転についての適用性-順応性モデルを引用している。"

En este artículo se presenta la pregunta abierta acerca de una actualización del paradigma ecléctico, con motivo de las nuevas formas en las que se puede invertir en otro país y que han emergido con fuerza desde la última década del siglo xx. A través de una revisión teórica de
todas las teorías habidas hasta la fecha, el desarrollo del modelo OLI de JH Dunning y su contraposición con la realidad que nos envuelve, se plantea la inadecuación de este modelo desarrollado hace varias décadas para explicar la realidad de la empresas multinacionles desde finales del siglo xx.

This paper considers industry policy and manufacturing in Australia by discussing the levels of tariffs and assistance by the Australian state.  Australian policymakers have long been fascinated by the rise of East Asia and attempted to emulate a similar high-tech manufacturing industry via neo-liberal deregulation.  Such a deregulation was of course was never part of the origin of the East Asian miracle until the 1980s.  When it did occur however its effects soon became acutely visible in 1997-1998 across Asian economies.  The paper does not discuss whether a singular East Asian economic model exists.  Nor does it debate the validity of the project apparently contained in the government policy since the 1980s.  More to the point, this paper raises the market policy movement that took inspiration from fixed perceptions of the East Asian economic miracle which was frequently (but not necessarily correctly) identified with neo-liberal deregulation.  In the paper, the exports of elaborately transformed manufactures, especially during the Howard Coalition government (1996-2007) period, are analysed.  What is Australia’s trade performance in such manufactures, including elaborately transformed manufactures?  What is the debate on the current support mechanisms?  Most importantly, what has the 1990s-2000s neo-liberal market governance achieved in Australia?  The paper covers these questions and reflects on the nature of Australian manufacturing exports to Japan.



本論文は、オーストラリアの州によって支えられる関税レベルを論じることによって産業政策とオーストラリアにおける製造業について考察している。オーストラリアの政策立案者は、長い間東アジアの台頭に魅了され、ネオリベラルな規制緩和経由で同様のハイテク製造業を真似ることに努めた。本文では特異な東アジア経済モデルが存在するかどうか、また1980年代以降、政府政策に明確に含まれているプロジェクトの妥当性も議論していない。ネオリベラルな規制緩和でしばしば識別される東アジア経済奇跡の固定された認識からインスピレーションを受けた市場政策の動きを提起している。精巧な製造業転換を含むオーストラリアの貿易パフォーマンスとは何か。現在のサポート•メカニズムについての議論とは何か。最重要項として、オーストラリアで達成された1990年代～2000年代のネオリベラルな市場統治は何があるのか。本文ではこれら疑問を取上げ、日本へのオーストラリアの輸出の性質を省察している。

Citation: Munjal, S. 2017, The Eclectic Paradigm: A Framework for synthesizing and
comparing theories of international business from different disciplines or perspectives, J. Cantwell (eds.), Transnational Corporations, forthcoming.


This edited volume by John Cantwell, the outgoing editor-in-chief of Journal of International
Business Studies (JIBS), presents a special compilation of articles on the eclectic paradigm.
Cantwell has done an excellent job in selecting articles from JIBS, which is the leading journal in
the field of international business (IB), and writing up the introductory piece. The book has nine
chapters including the introduction by Cantwell, which provides a holistic account of the eclectic
paradigm – how it emerged and developed over time. The introduction (Cantwell, 2015) is split
into five sections: a) the origins of the eclectic paradigm; b) the age of the powerful hierarchical
large firm, and rising industrial concentration; c) the age of the knowledge-driven global
economy; d) the ‘new age’ of more open and informal business networks; and e) the eclectic
paradigm in the new era.

This paper provides an analysis of Japanese hybrid factories in Australia in a context of labor relations aspect of the Japanese management and production system.  The paper argues that the labor relations aspect of the Japanese system is the most successful transfer to Australia.  In its second part the paper compares the data from Australia with Tetsuo Abo’s research in the UK and the US where ‘labor relations’ is the most successful transfer detected by Abo.  This paper is not a reconstruction of Abo’s hybrid framework but instead seeks to draw a qualified comparative analysis using Abo’s results.  The paper argues that there is a parallel between research findings from the UK, the US and Australia in terms of the success of labor relations that is inherent to the Japanese management and production system.  It is suggested that future research can investigate this point with larger comparative data sets.

The post-World War II reconstruction of global trade and foreign direct investment (FDI) has been a significant topic of discussion in the analyses of numerous bilateral economic relations, including those that are located in Asia Pacific.  Since the reconstruction, Multinational Enterprises (MNEs) have increasingly internalised trade and FDI in markets where they are active.  Markets and MNE activities have grown together while governments have become more responsive to this process.  This paper discusses the above process along with an analysis of the rise and development of the economic relationship between Australia and Japan from the immediate post-World War II phase through Australia’s neo-liberal trade policy phase.  The post-World War II relationship began in the 1950s, and grew during the Cold War years, the end of which has created competitive pressures on the Australian economy.  Australia has tried to overcome this by progressively adapting a unilateral neo-liberal trade policy and encouraging its trade and investment partners to do the same, unsuccessfully in most cases where such partners have extensive state subsidy structures in place.  The paper discusses the effects of major events such as the Plaza Accord and the end of Japan’s ‘bubble economy’ on the relationship.  The discussion extends into the development of new challenges in the 2010s.

This study is an effort to explore the impact of various determinants on Greek Outward Foreign Direct Investment from 2001 till the outbreak of the debt crisis in Greece. The case of Greece is of great interest of how a small peripheral EU country in the southern neighborhood drove its internationalization path before the outbreak of the financial crisis. Specifically, investigating the way in which Greece's participation in the single market and the oncoming crisis affected the internationalization of Greek MNEs is of utmost importance. A main contribution of this paper is that it examines ownership and location advantages at specific sectors of an economy. We do so by analyzing disaggregated firm level data and examining separately the sectors of trade and manufacturing. We are building our theoretical framework on Dunning's eclectic paradigm which perceives firms' internationalization as a result of the combination of Ownership advantages, Location advantages and Internationalization advantages. This model allows as to link the internal micro-environment of the firm with the external macro environment of the host country and also to investigate specific motives of internationalization for each sector. Our results indicate that there is a major and incontrovertible impact of the tax rate of the host country to the Greek MNEs. Moving forward at sector level analysis for the manufacturing and the trade sectors, we found that Dunning and Lundan's (2008) conceptualization on the motives of internationalization is validated.

ABSTRACT
The internationalization of the firm: an analysis of a Brazilian eucalyptus pulp exporter in 2018 based on Uppsala and Bartlett & Ghoshal models
The present research had compared how Uppsala and Bartlett & Ghoshal (B&G) models explain the internationalization process of the Brazilian pulp producer Fibria.
The Uppsala model describes the developments of capabilities that enable the firm to move towards higher commitments abroad. Despite its sine-qua-non dependence on foreign markets, it is unlikely that Fibria will internationalize its production to another country, given the country-specific advantages that the company has in Brazil. Nevertheless, Fibria set its structure abroad even when the direct exports would suffice to reach the markets without any foreign direct investment.
B&G deals with the aspects of the organizational structure and described the Transnational type as the evolution of the international firm. In their typology, Fibria was a Global and Ethnocentric type, but interestingly, elements of Transnational and Geocentric models were also observed in the company.
Both theories overlap or complement each other in many aspects. However, they could not explain the peculiarities of the internationalization of Fibria. One reason is the lack of country-related elements in these models.
Eventually, comparisons between theories such as those presented enable decision-makers to align the corporate strategy using suitable models, bearing in mind the limitations that each method entails.

This paper discusses the post-‘Lehman Brothers shock’ period of the Japanese foreign direct investment in Australia, and provides an analysis of the types of investment.  The analysis begins with the theoretical frameworks that define multinational enterprise (MNE) activity, and foreign direct investment.  The way in which ‘institutional economics’ theory is utilised within the ‘eclectic paradigm’ is also analysed herein.  The ‘Lehman Brothers shock’, the ensuing market decline, and the subsequent investor indecisiveness have had effects on foreign direct investment in Asia, the EU, and North America (Devos & Giovanoli, 2011).  While this situation continued, one particular economic bilateralism, that of Japan and Australia, has remained largely unaffected.  The bilateral trade volumes and structure between the two remain unaltered in the aftermath of the ‘shock’.  This paper details the Japanese foreign direct investment patterns in Australia that were present before the ‘Lehman Brothers shock’, and continued afterwards (i.e. several-stage type of acquisitions).  From the time of the ‘shock’ until April 2010, there were numerous Japanese acquisitions in Australia (Wallace, 2010).  This process has been continuing, as of December 2011, with Japanese MNE Inpex’s A$30 billion foreign direct investment in LNG extraction and export project (AAP, 2011; AFP, 2011).  Nippon Paper Group’s 2009 foreign direct investment in Australia was the ninth biggest Japanese global acquisition in that year (JETRO, 2010: 38), and Mitsubishi Corporation’s September 2008 foreign direct investment was the tenth largest (JETRO, 2009: 85).  The post-crisis business environment has been beset by uncertainties, and the global mergers and acquisitions had recovered to merely one third of the 2007 levels by the end of 2010 (UNCTAD, 2011: xii).  This has been the global trend, the context of the discussion herein.  As this paper discusses, the global trend, which UNCTAD describes, does not readily apply to the Japanese foreign direct investment in Australia.

本論文は、オーストラリアにおける日本のFDI、とりわけ2008～2010年の期間に言及している。オーストラリアにおける日本のFDIは「リーマンショック」の間もそれ以降も続いた。日本とオーストラリアの経済関係は貿易と投資という意味で概して影響を受けないままでいた。二国間の貿易量や構造は変わっていない。本論文では「リーマンショック」以前に始まり、その後も続いたオーストラリアにおける主な日本の海外直接投資を取り上げている。オーストラリアにおける日本のFDIは今なお関連する論点である。オーストラリアでの日本の企業買収は過去数年で増加し、そしてより大きな増加を伴ってその傾向は続いており、それは本文中の表・図表に示されている。主な投資者の中には日本製紙グループ、三菱商事、キリン、アサヒがある。本論文ではオーストラリアからの貿易や投資統計を使用している。議論はMNE理論、経済成長理論、及びDunningの「折衷的なパラダイム」を引き出している。本論文ではまた、安保哲夫教授による日本的ハイブリッド工場についての6大陸調査の主な分析フレームワークが多地域分析における海外での日本的生産（キリン、アサヒ）の新生傾向に当てはまる事を提案している。

The use of entry modes by multinational firms has received increased attention from international business scholars. Based on the context of sub-Saharan Africa, this research reviews the locational benefits offered to MNEs by in this region. Borrowing from the eclectic paradigm of international production, the research also examines the effects of each type of entry on the locational advantages offered to MNEs. Propositions are presented to suggest which mode of entry MNEs should pursue in African markets, based on the existence of locational advantages that complement existing firm-specific advantages. Practical and research implications are discussed, in addition to considerations for future research.