The OLI model was developed over more than 34 years by John Dunning, explaining level, origin, pattern as well as the growth of multinational enterprise’s offshore activities. Therefore it has proved to be the dominant paradigm international business evaluation. The model portrays an ever-expanding array of international business theories as well as phenomena. However, the questions about Dyson relocation to Singapore major specifically on the O in the OLI model. The adjustments of O advantages over the past three decades brought all international business phenomena alongside their related theories. But, ownership advantages typology maintains its relevance for international business investors.
Ownership advantages are significant for internationalization, existence as well as the success of the MNE as a corporation. The Dyson’s specific ownership advantage is based on the strong demand for the company’s high-end products. The acceleration of available business opportunities from the great revenue perspective in Singapore and other Asian nations made the Dyson nationalize their market in the region successfully. Asia contributes more than half of the firm’s profit. Through play down the significance of the move, the company resolved to transfer only two executives to Singapore.
The Dyson Company can be a vital part of a multi-plant enterprise due to its big economies of scale in overheads of non-production. The brand can manage and exploit economic diversities as the third form of the O advantage. Moreover, the location advantage of the move is about the need to enjoy closer proximity of its growing and rapidly growing market in the Asia-Pacific market. In Singapore, there is rapid urbanization, increasing income alongside a growing population that could ensure sharp sales of Dyson’s core products.
The L advantages are the tax breaks as well as loans from state-backed institutions in Singapore. The ownership-specific advantages: Dyson Company had a strong knowledge alongside capabilities as compared to its competitors in the automotive technology following the company’s evolution from household appliance brand to electric vehicles production. Also, this company has diverse customers, and most of its manufacturing operations are in Asia. The electric vehicle factory in Singapore is its most significant investment, so its construction requires management supervision.
Effectively Exploring Ownership-Specific Advantages across Internal Borders
The ownership-specific advantage can be effectively monitored by the company’s diversified customers who resulted in a sustainable position. Dyson also had access to capital necessary for production since it is one of the most significant business investments in the UK with high rates of saving. The internalization theory is based on the strong ownership advantages that explain the MNEs’ existence. Therefore, internalizing Dyson’s market for its intermediate products traversing national borders will result in O-specific advantages. Through the capability and willingness concept of Dyson Company provides internalization of available markets. Thus, for international production motivation as well as capability is significant.
So, it is essential for firms like Dyson to go abroad to obtain profits on their O-advantages. Also, it is necessary to acquire these benefits. The electric paradigm of international production displays the extent and pattern of firm’s multinational production. Due to the firm’s need to diversify its products to its diversified customers, it is crucial to internalizing the available factors of production to promote the competitiveness of the resulting products in the international market. Internalization of the multi-national operations leads to higher management of the proprietary technological advances.