Applying the eclectic framework : The strategy of transnational criminal enterprises in the global era

Purpose – This paper seeks to explore the applicability of the eclectic framework of international production in explaining the growth of transnational crime groups. Design/methodology/approach – The paper adopts a comparative discussion perspective. It examines a number of both similarities and differences between legitimate and illegal international business organizations suggesting that similarities between the two are sufficient to ensure the usefulness of existing explanatory frameworks which focus on ownership, location and internalization (OLI) advantages. Findings – Similarities are apparent in the growing internationalization of criminal activities and the emergence of network structures. Key changes in the business environment, particularly globalization and technological change, are affecting both legitimate and illegal business. Like legitimate business, international crime is undergoing significant change. Increased diversification is apparent as traditional criminal activities – gambling, loan sharking and prostitution – are combined with cross‐border automobile smuggling, art and archaeological theft, arms trafficking, trade in illegal wildlife products and credit‐card fraud. Originality/value – The discussion suggests a “mirroring” of legitimate international business strategies and structures by transnational criminal organizations. This raises interesting policy implications as to how such organisations might develop over time and how policy could be used to contain such activities.