New framework helps firms choose where to build factories globally

<p><strong>Purpose</strong></p><p>The study aims to clarify and present the role of the eclectic paradigm in manufacturing location decision research by examining its development, limitations, contributions and contemporary applications.</p><p><strong>Design/methodology/approach</strong></p><p>Conceptual paper based on how the eclectic paradigm developed and how it can be used. With an in-depth literature review to critically examine the theoretical evolution of the eclectic paradigm and its application in manufacturing location decision research, this study develops a strategic framework that enhances understanding.</p><p><strong>Findings</strong></p><p>This paper presents a practical guide for applying the eclectic paradigm. It introduces the strategic positioning matrix, enabling more effective navigation of the complexities in international production and location decision-making. It also highlights three dimensions to understand the decision factors, i.e. the drivers, barriers and enablers, in dynamic international business contexts.</p><p><strong>Research limitations/implications</strong></p><p>This paper harmonises with critical realism and once again stresses the fragmented and eclectic state of the research field by consolidating and advancing existing knowledge. Its conceptual scope, however, excludes empirical validation. Future research is encouraged to validate the proposed framework to assess its practical relevance and further explore contingency factors that remain underdeveloped in current literature.</p><p><strong>Originality/value</strong></p><p>As one of the few conceptual studies focused on the eclectic paradigm’s role in this context, this paper contributes by organising, systematising and extending its application. With the strategic positioning matrix, it fosters a more nuanced understanding and wider application among scholars and practitioners.</p>