Rethinking the Eclectic Paradigm: Explaining MNE E-Commerce Corporations' Activity in the Chinese Digital Sector

We use the eclectic paradigm as an analytical framework to explain the MNE e-commerce company’s activities in China. Grounded in the rich data, we argue that the dynamic interplay between the ownership advantage and local institutional context that have emerged—particularly in the information age—plays a significant role in explaining the trajectory of MNE e-commerce companies in China. We propose On, Ln and In by embedding network-based advantages within the OLI paradigm. With the acceleration of technological change and non-ergodic uncertainty, such a network-embedded eclectic paradigm will lead to MNE e-commerce companies’ sustainable development in the emerging economy.