What constitutes the costs and advantages of firms investing overseas?

Managerial and Decision Economics

Volumn 32, Issue 8, 2011, Pages 545-565

  Nachum, Lilach ^a  

^a CITY UNIVERSITY OF NEW YORK   (United States)

Author keywords

Financial services; Global cities; Liability of foreignness; MNE advantages; MNE theory

Indexed keywords

EID: 80855143710     PISSN: 01436570     EISSN: 10991468     Source Type: Journal    
DOI: 10.1002/mde.1558     Document Type: Article

References (79)

1. Agnes P. 2000. The "End of Geography" in financial services? Local embeddedness and territorialization in the interest rate swaps industry. Economic Geography 76(4): 347-366.
2. Aiken LS, West SG. 1991. Multiple Regression: Testing and Interpreting Interactions. Sage: Thousand Oaks, CA.
3. Aitken B, Harrison A. Lipsey RE. 1996. Wages and foreign ownership: a comparative study of Mexico, Venezuela, and the United States. Journal of International Economics 40(3-4): 345-371.
4. Ambos TC, Schlegelmilch BB. Ambos B, Brenner B. 2009. Evolution of organisational structure and capabilities in internationalising banks: the CEE operations of UniCredit's Vienna Office. Long Range Planning 42(5-6): 633-653.
5. Amin A, Thrift N. 1992. Neo-Marshallian nodes in global networks. International Journal of Urban and Regional Research 16(4): 571-587.
6. Anderson EW, Sullivan MW. 1993. The antecedents and consequences of customer satisfaction for firms. Marketing Science 12(2): 125-143.
7. Bartlett CA, Ghoshal S. 1989. Managing Across Borders-The Transnational Solution. Harvard Business School Press: Cambridge, Mass.
8. Benito GRG. 2005. Divestment and international business strategy. Journal of Economic Geography 5(2): 235-251.
9. Burgman TA. 1996. An empirical examination of multinational corporate capital structure. Journal of International Business Studies 27(3): 553-570.
10. Caves RE. 1971. International corporations: the industrial economics of foreign investments. Economica 38: 1-27.
11. Caves RE. 1996. Multinational Enterprise and Economic Analysis (2nd edn). Cambridge University Press: Cambridge. Mass.
12. City of London. 2010. Key facts about the City of London and the 'Square Mile'. (visited 8/2010).
13. CSFI. 2003. Sizing Up the City-London's Ranking as a Financial Center. CFSI for the Corporation of London: London.
14. DeYoung R, Nolle D. 1996. Foreign owned banks in the United States: earning market share or buying it? Journal of Money, Credit, and Banking 28: 622-636.
15. Djellal F, Gallouj F. 1999. Services and the search for relevant innovation indicators: a review of national and international surveys. Science and Public Policy 26(4): 218-232.
16. Doz Y, Santos J, Williamson P. 2001. From Global to Metanational: How Companies Win in the Knowledge Economy. Harvard Business School Press: Cambridge, Mass.
17. Finalta. 2008. In Search of the Ultimate Service Metric: Satisfaction Score. Referral Rate or Myth, Finalta: London.
18. Fisher CD, Yuan XY. 1998. What motivates employees? A comparison of US and Chinese responses. International Journal of Human Resource Management 9(3): 516-528.
19. Fombrun CJ, Shanley M. 1990. What's in a name? Reputation building and corporate strategy. Academy of Management Journal 33: 233-258.
20. Galbraith J. 1973. Designing Complex Organizations. Addison-Wesley: Reading, MA.
21. Ghemawat P. 2001. Distance still matters. Harvard Business Review 79(8): 137-145.
22. Ghoshal S, Korine H, Szulanski G. 1994. Interunit communication in multinational corporations. Management Science 40: 96-110.
23. Grant RM, Venzin M. 2009. Strategic and organisational challenges of internationalisation in financial services. Long Range Planning 42(5-6): 561-587.
24. Green S, Hassan F, Immelt J, Marks M, Meiland D. 2003. In search of global leaders. Harvard Business Review 81(8): 38-44.
25. Gulati R, Nohria N, Zaheer A. 2000. Strategic networks. Strategic Management Journal 21(3): 203-215.
26. Hannan M, Freeman J. 1989. Organizational Ecology. Harvard University Press: Cambridge, Mass.
27. Heckman JJ. 1979. Sample selection bias as a specification error. Econometrica 47(1): 153-162.
28. Hijzen A, Swaim P. 2008. Do Multinationals Promote Better Pay and Working Conditions? OECD: Paris.
29. Holt D, Quelch J, Taylor E. 2004. How global brands compete. Harvard Business Review 82(9): 68-75.
30. Huang Y. 2005. Are foreign firms privileged by their host governments? Evidence from the 2000 World Business Environment Survey. MIT Sloan Working Paper No. 4538-05.
31. Hymer S. 1960. The International Operations of National Firms: A Study of Direct Investment. MIT Press: Cambridge, Mass.
32. International Financial Services London. 2007. International Financial Markets in the UK. IFSL: London.
33. Jones G, Galvez-Munoz L (eds). 2002. Foreign Multinationals in the United States: Management and Performance. Routledge: London.
34. Jones MA, Mothersbaugh DL, Beatty SE. 2002. Why customers stay: measuring the underlying dimensions of services switching costs and managing their differential strategic outcomes. Journal of Business Research 55(6): 441-450.
35. Keep WW, Hollander SC, Dickinson R. 1998. Forces impinging on long-term business-to-business relationships in the United States: a historical perspective. Journal of Marketing 62(2): 31-46.
36. Kogut B, Kulatilaka N. 1994. Operating flexibility, global manufacturing, and the option value of a multinational network. Management Science 40(1): 123-139.
37. Kogut B, Singh H. 1988. The effect of national culture on the choice of entry mode. Journal of International Business Studies 19(3): 411-432.
38. Kose J, Yiming Q. 2003. Incentive features in CEO compensation in the banking industry. Federal Reserve Bank of New York Economic Policy Review April: 109-121.
39. Kostova T, Zaheer S. 1999. Organizational legitimacy under conditions of complexity: the case of the multinational enterprise. Academy of Management Review 24(1): 64-81.
40. Kronborg D, Thomsen S. 2009. Foreign ownership and long-term survival. Strategic Management Journal 30(2): 207-219.
41. Laud R, Grein A, Nachum L. 2008. Learning from Global Cities: In Leading Cities Companies Gain Access to Knowledge and Network. Sloan Management Review. Summer: 10-11.
42. Luo Y, Shenkar O, Nyaw MK. 2002. Mitigating liabilities of foreignness: defensive versus offensive approaches. Journal of International Management 8: 283-300.
43. McDowell L. 1997. A tale of two cities? Embedded organisations and embodied workers in the City of London. In Geographies of Economics, Lee R, Wills J (eds.). Arnold: London; 118-129.
44. McRae A, Cairncross F. 1991. Capital City: London as a Financial Center. Methuen: London.
45. Mezias JM. 2002. Identifying liabilities of foreignness and strategies to minimize their effects: the case of labor judgments in the United States. Strategic Management Journal 23(3): 229-344.
46. Mezias JM, Mezias SJ. 2006. Man Without a Country: Is there a Liability of Foreignness in Individual Outcomes? Unpublished manuscript, University of Miami: Miami, Florida.
47. Miller SR, Eden L. 2006. Local Density and Foreign Subsidiary Performance. Academy of Management Journal 49(2): 341-356.
48. Miller SR, Parkhe A. 2002. Is there a liability of foreignness in global banking? An empirical test of banks' X-Efficiency. Strategic Management Journal 23(1): 55-75.
49. Morck R, Yeung B. 1991. Why investors value multinationality. Journal of Business 64(2, April): 165-188.
50. Nachum L. 2003. Liability of foreignness in global competition? Financial service MNEs in the City of London. Strategic Management Journal 24(12): 1187-1208.
51. Nachum L. 2010. When is foreignness an asset or a liability? Explaining the performance differential between foreign and local firms. Journal of Management 36(3): 714-739.
52. Newburry W, Gardberg NA, Belkin LY. 2006. Organizational attractiveness is in the eye of the beholder: the interaction of demographic characteristics with foreignness. Journal of International Business Studies 37: 666-686.
53. Nocke V, Yeaple S. 2007. Cross-border mergers and acquisitions vs. greenfield foreign direct investment: the role of firm heterogeneity. Journal of International Economics 72(2): 336-365.
54. Nohria N, Ghoshal S. 1994. Differentiated fit and shared values: alternatives for managing headquarters-subsidiary relations. Strategic Management Journal 15(6): 491-502.
55. Palich LE, Cardinal LB, Miller CC. 2000. Curvilinearity in the diversification performance linkage: an examination of over three decades of research. Strategic Management Journal 21(1): 155-174.
56. Parada P, Alemany L, Planellas M. 2009. The internationalisation of retail banking: Banco Santander's journey towards globalisation. Long Range Planning 42(5-6): 654-677.
57. Peek J, Rosengren ES, Kasirye F. 1999. The poor performance of foreign bank subsidiaries: were the problems acquired or created? Journal of Banking and Finance 23(2-4): 579-604.
58. Petrou AP. 2009. Foreign market entry strategies in retail banking: choosing an entry mode in a landscape of constraints. Long Range Planning 42(5-6): 614-632.
59. Pfeffer J, Salancik GR. 1978. The External Control of Organizations: A Resource Dependence Perspective. Harper & Row: New York, NY.
60. Pharr JM. 2005. Synthesizing country-of-origin research from the last decade: is the concept still salient in an era of global brands? Journal of Marketing Theory and Practice 13(4): 34-44.
61. Porter M. 1990. The Competitive Advantage of Nations. The Free Press: New York, NY.
62. Rajeev B, Ramaswamy V, Alden DL, Steenkamp EM, Ramachander S. 2000. Effects of brand local and nonlocal origin on consumer attitudes in developing countries. Journal of Consumer Psychology 9(2): 83-95.
63. Rosenzweig PM, Nohria N. 1994. Influences on human resource development practices in multinational corporations. Journal of International Business Studies 25(2): 229-251.
64. Roth K, Kostova T. 2003. The use of the Multinational Corporation as a research context. Journal of Management 29(6): 883-902.
65. Rugman AM, Verbeke A. 2001. Subsidiary-specific advantages in multinational enterprises. Strategic Management Journal 22(3): 237-250.
66. Sassen S. 2001. The Global City: New York, London, Tokyo (2nd edn). Princeton University Press: Princeton, NJ.
67. Siegel J, Pyun L, Cheon BY. 2010. Multinational firms, labor market discrimination, and the capture of competitive advantage by exploiting the social divide. Harvard Business School working paper 11-011.
68. Smith KW, Sasaki MS. 1979. Decreasing multicollinearity: a method for models with multiplicative functions. Sociological Methods and Research 8: 35-56.
69. Thrift N. 1994. On the social and cultural determinants of international financial centers: the case of the City of London. In Money, Power and Space, S Corbridge, Thrift N, Martin R (eds.). Blackwell: Oxford; 327-355.
70. Tsang EWK, Yip PSL. 2007. Economic distance and the survival of foreign direct investment. Academy of Management Journal 50(5): 1156-1168.
71. Verlegh PW. 2007. Home country bias in product evaluation: the complementary roles of economic and socio-psychological motives. Journal of International Business Studies 38(3): 361-373.
72. Walter I. 2004. Mergers and Acquisitions in Banking and Finance. Oxford University Press: New York.
73. Wegener B. 1992. Concepts and measurement of prestige. Annual Review of Sociology 18: 253-280.
74. Weigelt K, Camerer, C. 1988. Reputation and corporate strategy: a review of recent theory and applications. Strategic Management Journal 9: 443-454.
75. Zaheer S. 1995. Overcoming the liability of foreignness. Academy of Management Journal 38(2): 341-363.
76. Zaheer S. 2000. Time zone economies and managerial work in a global world. In Innovations in International Cross-Cultural Management, Earley PC, Singh H (eds.). Sage Publications: London; 339-353.
77. Zaheer S, Mosakowski E. 1997. The dynamics of the liability of foreignness: a global study of survival in financial services. Strategic Management Journal 18(6): 439-464.
78. Zenios S, Harker P. (eds.). 2000. The Performance of Financial Institutions. Cambridge University Press: Cambridge, UK.
79. ZYen Consulting. 2009. The Global Financial Centres Index. A report prepared for the City of London. City of London: London.