INPROFORUM Junior 2012

Eclectic theory of foreign direct investments in the global Economy and its possible extensions
Pavlína Harušťáková

Language: en
Last modified: 2013-06-21


The paper reviews John H. Dunning’s eclectic theory, which is among international business researchers one of the most influential and at the same time also largely contradicted theory. From the first moment when it was presented in 1976, it has become a topic of many discussions. Some academics have followed Dunning´s view, while the others have had critical objections against its strands and contextual framework. The biggest claim put forward is, if eclectic theory with its OLI framework can really explain the patterns of foreign direct investment.

In the first part of proposed article the eclectic theory is presented, to create the better understanding of its baseline and three main variables, known as OLI. In following chapters, the papers and research work of other scholar are introduced. Not only the opinions in conformity with the theory, but also the suggestions for possible extensions and views of authors, who brought forward their dissatisfaction with the theory from various reasons. The main objective this paper deals with, is to present theory of eclectic theory and its development through more than three decades and the concepts of other authors, relating to the theory to understand the complexity of international production especially in today´s environment of fast and omnipresent changes. The main question, which the article is concerned about, is the possibility to create one single theory to explain the forms of foreign direct investment.


Dunning´s eclectic theory, International production, Multinational enterprise, Foreign direct investment

Full Text: PDF