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Multinational contracting and the eclectic paradigm of internationalization

journal contribution
posted on 2025-03-14, 04:46 authored by Azmeri RahmanAzmeri Rahman, Adrian J Bridge, Steve Rowlinson, Bryan Hubbard, Bo Xia
PurposeThe purpose of this paper is to present a novel version of Dunning’s eclectic paradigm of internationalisation (OLI framework) to explain both inbound and outbound Foreign Direct Investment (FDI) in multinational contracting.Design/methodology/approachThe OLI factors and hypothesis are significantly developed to address a weakness in the OLI framework in its application to settings, such as multinational contracting, with extreme heterogeneity arising from extreme location specificity.FindingsThese developments advance Dunning’s seminal contribution and bring this to life in construction research that has barely applied the framework and, when doing so, has focused only on outbound FDI by multinational contractors (MCs).Research limitations/implicationsThe power of the OLI framework is increased on explaining and predicting FDI in contexts that exhibit extreme heterogeneity associated with extreme location specificity. Furthermore, the operationalisation of key theories representing the framework’s OLI factors is made far more precise.Practical implicationsEngineering, construction and architectural managers, can now more reliably apply the OLI framework both in MCs’ outbound FDI decisions and in governments’ decisions to attract new MCs – or inbound FDI.Originality/valueA significant advance is made in the OLI framework in settings with extreme location specificity, along with the operationalisation of key theories associated with the OLI factors, including the first steps to operationalise Coase’s Nobel prize-winning transaction cost thesis.

History

Journal

Engineering, Construction and Architectural Management

Volume

25

Pagination

1418-1435

Open access

  • No

ISSN

0969-9988

eISSN

1365-232X

Language

eng

Publication classification

C1.1 Refereed article in a scholarly journal

Issue

11

Publisher

Emerald

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