Applying Eclectic Paradigm to the Internationalization Strategies of Construction Upstream Industries - Case of an Electronic Machinery Company
Date Issued
2015
Date
2015
Author(s)
Weng, Chih-Wei
Abstract
Taiwan experienced several integrated environmental changes, such as previous Ten Major Construction Projects, huge increase of export, cross-Strait relations, Party Alternation, magnetic effect by China, Financial tsunami, it became more difficult for enterprises who find footholds in Taiwan, and this research mainly explores International Strategies for Taiwan Building Material Industry, hope to systematically bring forth configuration analyzed and projects thought through analysis of Eclectic Paradigm ,to see if Eclectic Paradigm can effectively explain process of internationalization or decision making for overseas investment. Core of Eclectic Paradigm is Ownership Specific Advantage, Location Specific Advantage and Internalization Incentive Advantage. 1. Ownership Specific Advantage include two aspects, (1) Advantages caused by monopolizing intangible assets, and the other is (2) Advantages caused by Enterprise Scale Economy, including transaction advantages. 2. Location Specific Advantage is the advantage that host country owns, enterprises can only accept and utilize this advantage. 3. Internalization Incentive Advantage means the ability that multinational companies use Ownership Specific Advantage, to save or eliminate transaction costs. This research analyzes the experiences that when individual case company operates international business, the developing process of different markets in different period. First of all Turkey has been developed earlier,it has more complete statements and analysis, development of Indian Market is market analysis of an ongoing market, finally this research would like to discuss about Thailand (Association of Southeast Asian Nations),an analysis regarding future development and promotion or investment by using Eclectic Paradigm to systematically think about internationalization process.If enterprise only have Ownership Specific Advantage and Internalization Incentive Advantage, without Location Specific Advantage, this means that there is a lack of advantageous overseas investment location, therefore enterprise can only utilize relevant advantages domestically, and rely on export to supply local market. If enterprise only has Ownership Specific Advantage and Location Specific Advantage, this explains Ownership Specific Advantage owned by enterprise is hard to be utilized internally, it can only be transferred to foreign enterprises. If enterprise has Location Specific Advantage and Internalization Incentive Advantage but no Ownership Specific Advantage, enterprise shows a lack of basic premise of direct investment abroad and overseas expansion will not be successful. By discussing cases of these three areas, using OLI configuration to analyze overseas market is a systematic and effective method, it helps decision maker''s short term strategic thinking.
Subjects
Eclectic Paradigm
Internationalization Strategies
Construction Industries
Building Materials
Type
thesis
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