Table 1.

Development of the Eclectic Paradigm over time

YearContributionDevelopment of the Eclectic Paradigm
Dunning (1980) Proposed the OLI parameters
Conducted empirical studies to test the eclectic paradigm: and evaluated O and L parameters
O: ownership advantages
L: location advantages
I: internalisation advantages
Dunning (1983) Distinguished between the asset (Oa) and transaction (Ot) advantages of international companiesO: ownership advantages
Oa: asset advantages
Ot: transaction advantages
Dunning (1988) Specified the eclectic paradigm in explaining three main forms of international manufacturingThe Eclectic Paradigm:
MS: market-seeking production
RS: resource-seeking production
ES: efficiency-seeking production
Dunning (1998) Enriched the eclectic paradigm by adding the strategic asset-seeking into variables that influence the production decisionThe Eclectic Paradigm:
MS: market-seeking FDI
RS: resource-seeking FDI
ES: efficiency-seeking FDI
SAS: strategic asset-seeking FDI
Dunning (2000) Compare eclectic paradigm with other international manufacturing theories 
Dunning (2001) Present the development of the eclectic paradigm, answered three main criticisms 
Source: Authors’ own work

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