Reframing <scp>FDI</scp> Motivations Through <scp>OLIP</scp> : Explaining Private Engagement for Sustainable Development in <scp>PPPs</scp>

ABSTRACT The drivers of firms' participation in fragile markets have become increasingly complex. Under such conditions, the conventional explanation focusing on incentives within the OLI framework—ownership, location, and internalization advantages—proves insufficient. Instead, partnerships with stakeholders emerge as a critical determinant, mitigating risks and stabilizing financing, particularly in the context of public–private partnerships (PPPs). This study integrates stakeholder theory into the OLI framework and advances the OLIP framework, which augments OLI with partnership‐specific advantages (P). Within this framework, partnerships are conceptualized not merely as contextual conditions but as strategic assets. Empirically, the study analyzes the Tina River Hydropower Development Project (TRHDP) in the Solomon Islands, where Hyundai Engineering engaged both as contractor and equity investor. Semi‐structured interviews reveal the actual drivers of participation and confirm the explanatory relevance of the OLIP framework. To complement the case study, an Analytic Hierarchy Process (AHP) survey of PPP experts evaluates the relative significance of OLIP dimensions. The findings demonstrate that partnership advantages constitute a critical and independent dimension alongside OLI factors in PPPs under uncertain institutional environments. These results contribute to extending international business theory and offer practical implications for cross‐sector collaborations in development contexts.