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.