Internationalization of Enterprise Resource Planning Vendors

International business theory suggests that multinational corporations are usually disadvantaged compared to local firms when competing in a host market. However, we find foreign enterprise resource planning (ERP) vendors the Chinese high-end ERP market perform significantly better than vendors. To understand this gap, authors first analyze model and its four characteristics as service use Dunning's OLI paradigm specify ownership-specific, internalization-incentive, location-specific advantages (O-, I-, L-advantages) required for compete country's Then, after conducting case studies of two with highest share market, SAP Oracle, they confirm O-advantages from strong brand reputation, high research development capabilities, professional partners, I-advantages wholly owned subsidiaries, L-advantages economically developed regions cause Oracle excel