Dunning (2000)

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Theories

Internalisation theory (E.g. Buckley and Casson, 1976)

This theory covers market, resource and efficiency-seeking reasons for FDI. It is confined to Oa and Ot advantages arising from internalisation of intermediate products

Follow my leader/tit for tat theory (E.g. Knickerbocker, 1973; Graham, 1975; Flowers, 1976)

This theory covers all reasons for seeking FDI, including strategy asset-seeking. It explains FDI as a space-related strategy among competing oligopolies.

Resource-based theory (E.g. Wernerfelt, 1984)

Covering market, resource and efficiency-seeking reasons for FDI, this theory argues for the search for variables to create and enhance OAs. There is limited awareness of Ot

Evolution theory (E.g. Cantwell, 1984)

This theory covers all four reasons for outward FDI and is a holistic, time-related approach. It identifies dynamic Oa advantages, relating to the path dependency of accumulated competitive advantages

Organisational theories (E.g. Bartlett and Ghoshal, 1989, 1993; Porter, 1991)

Again, spanning all reasons for outbound investment, these theories discuss managers' abilities to co-ordinate and deploy advantages around the world.

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Theories