A Study on the Transnational Expansion Path of Procter & Gamble Based on the OLI Paradigm

Luyao Liang

doi:10.62177/amit.v2i3.1398

Authors

Luyao Liang Yunnan University of Finance and Economics

DOI:

https://doi.org/10.62177/amit.v2i3.1398

Keywords:

Procter & Gamble, Ownership-Specific Advantage, Internalization Theory, Locational Advantage Theory

Abstract

As a preeminent global fast-moving consumer goods (FMCG) enterprise and one of the most long-standing multinational corporations in the Fortune Global 500, Procter & Gamble (P&G) offers a valuable case for understanding the evolution of international business strategy. Taking the OLI paradigm as the theoretical framework, this paper conducts a long-term, multi-dimensional analysis of P&G's transnational expansion from 1837 to 2023. The findings reveal that ownership-specific advantages (O), derived from technological and organizational monopolies, synergistically reinforce brand premium; internalization advantages (I), centered on patent-trademark portfolios and integrated supply chain governance, effectively mitigate public-good externalities; locational advantages (L), shaped by the interaction of factor costs and cultural dynamics, determine market entry timing and capacity repatriation strategies. This study recommends that multinational firms prioritize building a "patent-trademark-organization" tripartite advantage. It provides micro-level evidence for emerging-market governments to improve intellectual property governance and design investment-promotion policies, and offers a replicable strategic template for multinationals operating amid global value chain restructuring.

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References

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