Determinants of MNEs' Natural Resources Endowments on Performance: An Analytical Model

Abstract

Drawing on the resource-based view and dynamic capabilities' perspectives of the firm, we present a comprehensive analytical model of the key determinants of natural resources endowments (NREs) on the performance of multinational enterprises (MNEs). We also propose four moderators that influence the NRE-performance relationship: private ownership, state ownership, financial resources availability, and research and development efforts. The model makes clear how the various determinants of the NRE-performance relationship impacts international business. The model is designed to motivate empirical research on this topic. Implications to various stakeholders flowing from the proposed model are also discussed.

Establishing an Index System to Evaluate Marine Resource Endowment for the Sustainable Development of China's Marine Economy

“…They also propose four adjustment factors that affect the NRE performance relationship: private ownership, state ownership, availability of financial resources, research, and development efforts. The model clarifies how various determinants of the NRE performance relationship affect international business (Davila and Sampath, 2018). Oberhofer (2021) described that the general equilibrium structure is used to simulate the welfare effect of the loss of the assumption of consumable resource endowment in an open economy.…”