Abstract
The eclectic or OLI paradigm examines the interplay between the firm’s ownership advantages (O), the locational advantages of host countries (L) and the internalization advantages derived from coordinating economic activity within the firm (I). Although initially the eclectic paradigm was mainly directed to explaining the aggregate pattern and distribution of foreign direct investment across countries, over time it began to be increasingly applied also at the level of the firm, to answer questions such as why a particular firm would choose a particular modality to enter a specific market, or how the past configuration of OLI advantages is likely to influence the choices available to the firm in the future.
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Lundan, S.M. (2016). Eclectic Paradigm. In: Augier, M., Teece, D. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-94848-2_746-1
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DOI: https://doi.org/10.1057/978-1-349-94848-2_746-1
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