A Comment on the Extension of the OLI Framework to Emerging Economies

Abstract

Does Dunning�s Ownership�Location�Internalization (OLI) framework explain the internationalization of business groups in emerging economies? I argue that business groups do not have traditional �firm specific advantages� (FSAs) that the OLI framework talks about, but their ownership advantages derive from the home country locational advantages. However, as pro-market reforms get implemented in emerging economies, these FSAs of business groups will increasingly provide less marginal benefits. Under such conditions, business groups will develop a new range of FSAs, which are independent of their locational advantages. I extend the debate as to whether the internationalization of business groups is unique enough to require new theories. � 2015 IMI SAGE Publications.