From OLI to OLIN: understanding the internationalization process of elite business schools

Purpose This study investigates whether the Ownership, Location, and Internalization (OLI) framework explains the internationalization of elite business schools into global cities (GCs) and proposes a theoretical extension to better account for the behavior of knowledge-intensive multinationals (KIMs). Design/methodology/approach We conducted a statistical analysis of the internationalization patterns of the top 100 business schools ranked in the Financial Times Global MBA 2022 report. Using Pearson correlations, we tested the relationships between the connectivity levels of home and host cities and various internationalization strategies. Findings Our results show that elite business schools expand into highly connected global cities not only for market access but also to mitigate the liability of outsidership. This is achieved through strategic networking embedded in urban ecosystems. While the OLI framework partially explains this behavior, it fails to account for the importance of network-based advantages. We propose an extension—Ownership-Location-Internalization-Networking (OLIN)—to better capture the internationalization logic of KIMs. Originality/value Unlike prior case-driven studies, this research applies and critiques a foundational international business framework in a new context. By focusing on elite business schools—prototypical KIMs—we offer broader theoretical insights into how firms in knowledge-intensive industries navigate global expansion through city-based networks. These findings have implications for both IB theory and higher education strategy in emerging markets and beyond.