Table 4.

Hybrid decision factors generated from dunning’s Eclectic Paradigm (Dunning, 1998)

FactorResource-seekingMarket-seekingEfficiency-seekingStrategic asset-seeking
Cost of resourcesThe price of natural resourcesReal wage costs; material costsProduction cost-related factors (labour, materials and machinery) 
Local infrastructuresInfrastructure to enable resources to be exploitedQuality of national and local infrastructureAvailability and quality of local infrastructure 
Investment incentivesInvestment incentives, such as tax and holiday Investment incentives, such as tax breaks and grants 
Legislation and regulationsGovernment restrictions on FDI or on capital/dividend remissionsGovernment restrictions on FDI and market accessFreedom to engage in trade in one location
Government’s role in removing obstacles to restructuring economic activity
 
Knowledge-related assetsAvailability of local partners to jointly promote knowledge  Availability of knowledge-related assets and harnessing such assets from foreign locations
Agglomerative spatial economies Increased role of agglomerative spatial economiesAvailability of specialized spatial clusters (science parks, service support systems) 
Source: Authors’ own work

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