Employer Brand: A New Component of Ownership Specific Advantage of Eclectic Paradigm

Abstract

Ownership Advantage, a sub-paradigm of OLI paradigm formulated by J.H. Dunning is a set of determinant factors of foreign direct investment (FDI) and the foreign activities of multinational enterprises (MNEs). For making a strategic decision of FDI MNEs must have some firm specific advantages compared to the enterprises in the host economy. Ownership Specific Advantage is a combination of firm's assets (tangible and intangible) and capabilities of arranging assets that provide it competitive advantage in its foreign business operation. Employer Brand is organization's intangible asset and at the same time, unique capability of attracting and retaining prospective and current talented employees. This study intends to integrate employer brand with the existing components of Ownership Advantage of OLI paradigm explaining how Employer Brand enriches a firm to enjoy competitive advantages in foreign business operation.

JEL Classification Code: F16, F21, F23, J24, J81, M16, M51