Table 2. Examples of decision factors in... | Emerald Publishing

Table 2.

Examples of decision factors in the Eclectic Paradigm (Dunning, 1998)

Type of advantages	Decision factor examples
Resource-seeking	• The availability of local resources (Natural resources/infrastructures/investment incentives) • The availability of local partners • Local opportunities for upgrading the quality of resources/logistics
Market-seeking	• Accessibility of domestic/adjacent regional markets • Cost of the resources market (Real wage costs/material costs/transportation costs) • Factors contribute to better business environments (Tariff barriers/privileged access to import licences) • Availability and price of skilled labour • Competitiveness of related firms • Quality of infrastructure • Industrial agglomeration • Macroeconomic and macro-organizational policies • Promotional activities
Efficiency-seeking	• Production-related costs (Labour costs/material costs/machinery costs) • Presence of agglomerative economies • Investment incentives (Tax breaks/accelerated depreciation/grant/subsidized land) • Knowledge-intensive and integrated activities (Research and development (R&D)/office functions) • Government regulations (Removing obstacles and facilitating HR upgrading) • Availability of specialized spatial clusters (Science parks/industrial parks/service support systems)
Strategic asset-seeking	• Price and availability of knowledge-related assets (Know-how/intellectual property (IP)/synergistic assets) • Acquisition and harnessing of such assets with business partners • Opportunities to exchange localized tacit knowledge • Different cultures, institutions and systems • Different customer demands and preferences

Type of advantages	Decision factor examples
Resource-seeking	• The availability of local resources(Natural resources/infrastructures/investment incentives)• The availability of local partners• Local opportunities for upgrading the quality of resources/logistics
Market-seeking	• Accessibility of domestic/adjacent regional markets• Cost of the resources market(Real wage costs/material costs/transportation costs)• Factors contribute to better business environments(Tariff barriers/privileged access to import licences)• Availability and price of skilled labour• Competitiveness of related firms• Quality of infrastructure• Industrial agglomeration• Macroeconomic and macro-organizational policies• Promotional activities
Efficiency-seeking	• Production-related costs(Labour costs/material costs/machinery costs)• Presence of agglomerative economies• Investment incentives(Tax breaks/accelerated depreciation/grant/subsidized land)• Knowledge-intensive and integrated activities(Research and development (R&D)/office functions)• Government regulations(Removing obstacles and facilitating HR upgrading)• Availability of specialized spatial clusters(Science parks/industrial parks/service support systems)
Strategic asset-seeking	• Price and availability of knowledge-related assets(Know-how/intellectual property (IP)/synergistic assets)• Acquisition and harnessing of such assets with business partners• Opportunities to exchange localized tacit knowledge• Different cultures, institutions and systems• Different customer demands and preferences

Source: Authors’ own work