What are Ownership Advantages?
Sarianna M. Lundan
University of Bremen
September 16, 2009
The Multinational Business Review, Vol. 18, No. 2, pp. 51-69, 2010
In this paper we examine three distinct types of ownership advantages, and argue that these are associated with three different kinds of limits to the growth of the firm. For some firms, the inability to regenerate its asset-based advantages is critical, while for others, the inability to effectively coordinate its assets (inside or outside the firm), or the inability to negotiate the nonmarket environment are more salient. We think that the identification of different analytical categories of ownership advantages enables the construction of better proxies in empirical research, and helps to explain the limited geographical reach of MNEs observed in the literature.
Number of Pages in PDF File: 19
Keywords: MNE theory, OLI paradigm, firm growth
JEL Classification: F23, D23, D83
Date posted: September 16, 2011