Debunking the Production Predicaments among the Motor and Pump Exporters in the Coimbatore Region: Upside-down Approach of O-L-I Framework

Abstract

We explore the unplumbed dimension of the O-L-I specific advantage of the firm in this research by shifting the focus from the entry mode of MNEs to problems faced by home-based manufacturer exporters, which is unique from its original concept. The proposed approach transposes the idea and implication of the eclectic paradigm in an international trade setting. To test the upside-down approach of the O-L-I framework, various challenges were identified through EFA and CFA, and in the final phase, the impact of ownership, location and internalization has been measured (using path analysis) on production problems faced by these manufacturer exporters. We used a structured questionnaire to collect the data from 220 motors and pump manufacturer exporters from January to September 2021. Moreover, the Coimbatore city wears the crown of ‘Pump City of Asia’, which makes the spot an ideal place for generalization of research and optimization of desired results. The research outcome illustrates the significant impact of location and internalization on the production problems encountered by the manufacturer exporters. The novelty of the study is substantiated by extending the application of O-L-I specific advantage for FDI to home-based exports, which we labelled as the ‘up-side-down approach’ of the O-L-I framework.