Host-Home Country Linkages and Host-Home Country Specific Advantages as Determinants of Foreign Acquisitions by Indian Firms

Peter J. Buckley, Nicolas Forsans, Surender Munjal

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

This paper examines the complementarity of country-specific linkages with country-specific advantages in explaining the foreign acquisitions by Indian MNEs by testing and extending further the Eclectic Paradigm. The approach to internationalisation dominated by the Eclectic Paradigm has constantly faced challenges in gaining acceptance as a holistic framework in explaining outward foreign direct investment (OFDI). In 2006 Dunning acknowledged that the role of networks and linkages (Dunning, 2006a). In this paper we explore the view that linkages between host and home country should be included in the Eclectic Paradigm as institutional assets. Country-specific linkages add to richness and improve explanatory power of the Eclectic Paradigm. Linkage variables are shown to be an adjunct to the Eclectic Paradigm, not an alternative to it.
Original languageEnglish
Title of host publicationThe Multinational Enterprise and the Emergence of the Global Factory
EditorsPeter J. Buckley
Place of PublicationBasingstoke
PublisherPalgrave Macmillan Ltd
Chapter8
Pages173–199
Number of pages27
ISBN (Electronic)9781137402387
ISBN (Print)9781137402363, 9781349486687
DOIs
Publication statusPublished - 21 Nov 2014

Keywords

  • foreign direct investment
  • host country
  • home country
  • cultural distance
  • multinational enterprise

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