Challenge to the existing theories of the mne and the oli or eclectic paradigm in particular, has been the subject of recent debate (collinson & rugman, 2007 dunning, 2006 mathews, 2006b narula, 2006. Critically analyse how dunning's oli paradigm seeks to explain the why, how and where organisations such as burger king invest according to dunning (1979:p274), the eclectic paradigm resulted from his dissatisfaction with existing theory of international production: the hymer-kindleberger approach, the product-cycle theory, and the internalisation theory.
The oli framework for explaining why multinational corporations (mncs) might want to choose foreign direct (real) investment (fdi) instead of licensing use of their name or product to foreign producers or sellers.
The eclectic paradigm is a theory in economics and is also known as the oli-model or oli-framework   it is a further development of the internalization theory and published by john h dunning in 1979.
An eclectic paradigm is a theory based on a three-tiered framework that a company follows to determine if direct foreign investment would be beneficial. Perspectives institutions and the oli paradigm of the multinational enterprise john h dunning & sarianna m lundan published online: 24 january 2008 # springer science + business media, llc 2008 abstract the prevailing ownership-based theories of the firm are increasingly being.
A good way to at least exclude some of them is by using the so called oli paradigm (also known as the eclectic paradigm) oli is an acronym for ownership-, location- and internalization- advantage according to this paradigm, a company needs all three advantages in order to be able to successfully engage in fdi. Paradigm and then uses it as a lens through which to review some of the highlights of this research, while also noting some important issues that it neglects “oli” stands for ownership, location, and internalization, three potential sources.
Eclectic paradigm dunning 1 eclectic paradigm by : john h dunning 35142471 : yoichi miyata oli-framework or model 2 the key propositions of the eclectic paradigm: (1 - o) the (net) competitive advantages which firms of one nationality possess over those of another nationality in supplying any particular market or set of markets.