Eclectic paradigm

Eclectic paradigm,

Definition of Eclectic paradigm:

  1. The eclectic paradigm takes a holistic approach to examining entire relationships and interactions of the various components of a business. The paradigm provides a strategy for operation expansion through FDI. The goal is to determine if a particular approach provides greater overall value than other available national or international choices for the production of goods or services.

  2. An eclectic paradigm, also known as the ownership, location, internalization (OLI) model or OLI framework, is a three-tiered evaluation framework that companies can follow when attempting to determine if it is beneficial to pursue foreign direct investment (FDI). This paradigm assumes that institutions will avoid transactions in the open market if the cost of completing the same actions internally, or in-house, carries a lower price. It is based on internalization theory and was first expounded upon in 1979 by the scholar John H. Dunning.

  3. A holistic economic model used to evaluate a companys strategy to expand its operations through foreign direct investment. The model applies common economic factors to determine if the value derived from the strategy is greater than alternative transnational strategies.

How to use Eclectic paradigm in a sentence?

  1. An eclectic paradigm is also known as the ownership, location, internalization (OLI) model or OLI framework.
  2. The eclectic paradigm takes a holistic approach to examining entire relationships and interactions of the various components of a business.
  3. The goal is to determine if a particular approach provides greater overall value than other available national or international choices for the production of goods or services.

Meaning of Eclectic paradigm & Eclectic paradigm Definition