Assets of Foreignness: A Theoretical Integration and Agenda for Future Research

Journal of International Management

Volumn 23, Issue 1, 2017, Pages 43-55

  Mallon, Mark R ^a   Fainshmidt, Stav ^b  

^a OLD DOMINION UNIVERSITY   (United States)

^b FLORIDA INTERNATIONAL UNIVERSITY   (United States)

Author keywords

Assets of foreignness; Firm resources; Home country; Host country; Institutional asymmetry; Multinational enterprise

Indexed keywords

EID: 84995757500     PISSN: 10754253     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.intman.2016.08.001     Document Type: Article

References (94)

1. Ahmed, Z.U., Johnson, J.P., Yang, X., Chen, K.F., Tang, H.S., Boon, L.C., Does country of origin matter for low-involvement products?. Int. Mark. Rev. 21:1 (2004), 102–120.
2. Almeida, P., Phene, A., Subsidiaries and knowledge creation: the influence of the MNC and host country on innovation. Strateg. Manag. J. 25:8–9 (2004), 847–864.
3. Anand, J., Delios, A., Absolute and relative resources as determinants of international acquisitions. Strateg. Manag. J. 23:2 (2002), 119–134.
4. Barney, J., Firm resources and sustained competitive advantage. J. Manag. 17:1 (1991), 99–120.
5. Bartlett, C.A., Ghoshal, S., Managing Across Borders: The Transnational Solution. 1989, Harvard Business School Press, Cambridge, MA.
6. Battilana, J., Leca, B., Boxenbaum, E., How actors change institutions: towards a theory of institutional entrepreneurship. Acad. Manag. Ann. 3:1 (2009), 65–107.
7. BBC, Tetley bagged by India's Tata. http://news.bbc.co.uk/2/hi/business/658724.stm, 2000 (June 16).
8. Bilkey, W.J., Nes, E., Country-of-origin effects on product evaluations. J. Int. Bus. Stud. 13:1 (1982), 89–99.
9. Birkinshaw, J., Bresman, H., Håkanson, L., Managing the post-acquisition integration process: how the human integration and task integration processes interact to foster value creation. J. Manag. Stud. 37:3 (2000), 395–425.
10. Cuervo-Cazurra, A., Who cares about corruption?. J. Int. Bus. Stud. 37:6 (2006), 807–822.
11. Cuervo-Cazurra, A., Extending theory by analyzing developing country multinational companies: solving the Goldilocks debate. Glob. Strateg. J. 2:3 (2012), 153–167.
12. Cuervo-Cazurra, A., Genc, M., Transforming disadvantages into advantages: developing-country MNEs in the least developed countries. J. Int. Bus. Stud. 39:6 (2008), 957–979.
13. Dangelico, R., Pujari, D., Mainstreaming green product innovation: why and how companies integrate environmental sustainability. J. Bus. Ethics 95:3 (2010), 471–486.
14. Delios, A., Beamish, P.W., Survival and profitability: the roles of experience and intangible assets in foreign subsidiary performance. Acad. Manag. J. 44:5 (2001), 1028–1038.
15. Denis, D.J., Denis, D.K., Yost, K., Global diversification, industrial diversification, and firm value. J. Financ. 57:5 (2002), 1951–1979.
16. Denk, N., Kaufmann, L., Roesch, J.-F., Liabilities of foreignness revisited: a review of contemporary studies and recommendations for future research. J. Int. Manag. 18:4 (2012), 322–334.
17. Doukas, J., Overinvestment, Tobin's q and gains from foreign acquisitions. J. Bank. Financ. 19:7 (1995), 1285–1303.
18. Doukas, J.A., Kan, O.B., Does global diversification destroy firm value?. J. Int. Bus. Stud. 37:3 (2006), 352–371.
19. Dunning, J.H., Toward an eclectic theory of international production: some empirical tests. J. Int. Bus. Stud. 11:1 (1980), 9–31.
20. Dunning, J.H., Location and the multinational enterprise: a neglected factor?. J. Int. Bus. Stud. 29:1 (1998), 45–66.
21. Dunning, J.H., Lundan, S.M., Institutions and the OLI paradigm of the multinational enterprise. Asia Pac. J. Manag. 25:4 (2008), 573–593.
22. Dyer, J.H., Hatch, N.W., Relation-specific capabilities and barriers to knowledge transfers: creating advantage through network relationships. Strateg. Manag. J. 27:8 (2006), 701–719.
23. Fagre, N., Wells, L.T., Bargaining power of multinationals and host governments. J. Int. Bus. Stud. 13:2 (1982), 9–23.
24. Foss, N.J., Networks, capabilities, and competitive advantage. Scand. J. Manag. 15:1 (1999), 1–15.
25. Furman, J.L., Porter, M.E., Stern, S., The determinants of national innovative capacity. Res. Policy 31:6 (2002), 899–933.
26. Geewax, M., Smithfield says pork won't change, but some aren't buying it. NPR. http://www.npr.org/2013/07/09/200393587/smithfield-says-pork-won-t-change-but-some-aren-t-buying-it, 2013 (February 2, 2016).
27. Govindarajan, V., Ramamurti, R., Reverse innovation, emerging markets, and global strategy. Glob. Strateg. J. 1:3–4 (2011), 191–205.
28. Gu, Q., Lu, X., Unraveling the mechanisms of reputation and alliance formation: a study of venture capital syndication in China. Strateg. Manag. J. 35:5 (2014), 739–750.
29. Guillén, M.F., García-Canal, E., The American model of the multinational firm and the “new” multinationals from emerging economies. Acad. Manag. Perspect. 23:2 (2009), 23–35.
30. Hall, P.A., Soskice, D., Varieties of capitalism: The institutional foundations of comparative advantage. 2001, Oxford, Oxford University Press.
31. Hejazi, W., Santor, E., Foreign asset risk exposure, DOI, and performance: an analysis of Canadian banks. J. Int. Bus. Stud. 41:5 (2010), 845–860.
32. Holburn, G.L., Zelner, B.A., Political capabilities, policy risk, and international investment strategy: evidence from the global electric power generation industry. Strateg. Manag. J. 31:12 (2010), 1290–1315.
33. Hoskisson, R.E., Eden, L., Lau, C.M., Wright, M., Strategy in emerging economies. Acad. Manag. J. 43:3 (2000), 249–267.
34. Hymer, S. 1960. The international operations of national firms: a study of direct investment Unpublished Unpublished Ph. D. Dissertation, Massachusetts Institute of Technology, Cambridge, MA.
35. Ingram, P.L., Silverman, B.S., The New Institutionalism in Strategic Management. 2002, Elsevier, Oxford.
36. Insch, G.S., Miller, S.R., Perception of foreignness: benefit or liability?. J. Manag. Issues 17:4 (2005), 423–438.
37. Jackson, G., Deeg, R., Comparing capitalisms: understanding institutional diversity and its implications for international business. J. Int. Bus. Stud. 39:4 (2008), 540–561.
38. Kim, Y.-C., Lu, J.W., Rhee, M., Learning from age difference: interorganizational learning and survival in Japanese foreign subsidiaries. J. Int. Bus. Stud. 43:8 (2012), 719–745.
39. Kirca, A.H., Hult, G.T.M., Roth, K., Cavusgil, S.T., Perryy, M.Z., Akdeniz, M.B., Deligonul, S.Z., Mena, J.A., Pollitte, W.A., Hoppner, J.J., Firm-specific assets, multinationality, and financial performance: a meta-analytic review and theoretical integration. Acad. Manag. J. 54:1 (2011), 47–72.
40. Klein, J.G., Ettenson, R., Morris, M.D., The animosity model of foreign product purchase: an empirical test in the People's Republic of China. J. Mark. 62:1 (1998), 89–100.
41. Kostova, T., Zaheer, S., Organizational legitimacy under conditions of complexity: the case of the multinational enterprise. Acad. Manag. Rev. 24:1 (1999), 64–81.
42. Kostova, T., Roth, K., Dacin, M.T., Institutional theory in the study of multinational corporations: a critique and new directions. Acad. Manag. Rev. 33:4 (2008), 994–1006.
43. Kronborg, D., Thomsen, S., Foreign ownership and long-term survival. Strateg. Manag. J. 30:2 (2009), 207–219.
44. Landau, C., Karna, A., Richter, A., Uhlenbruck, K., Institutional leverage capability: creating and using institutional advantages for internationalization. Glob. Strateg. J. 6:1 (2016), 50–68.
45. Lehrer, M., Macro-varieties of capitalism and micro-varieties of strategic management in European airlines. Hall, P.A., Soskice, D., (eds.) Varieties of Capitalism: The Institutional Foundations of Comparative Advantage, 2001, Oxford University Press, New York, 361–386.
46. Leiblein, M.J., What do resource- and capability-based theories propose?. J. Manag. 37:4 (2011), 909–932.
47. Li, J., Guisinger, S., Comparative business failures of foreign-controlled firms in the United States. J. Int. Bus. Stud. 22:2 (1991), 209–224.
48. Luo, Y., Rui, H., An ambidexterity perspective toward multinational enterprises from emerging economies. Acad. Manag. Perspect. 23:4 (2009), 49–70.
49. Madhok, A., Li, S., Priem, R.L., The resource-based view revisited: comparative firm advantage, willingness-based isolating mechanisms and competitive heterogeneity. Eur. Manag. Rev. 7:2 (2010), 91–100.
50. Magnusson, P., Westjohn, S.A., Zdravkovic, S., “What? I thought Samsung was Japanese:” accurate or not, perceived country of origin matters. Int. Mark. Rev. 28:5 (2011), 454–472.
51. Malnight, T.W., Globalization of an ethnocentric firm: an evolutionary perspective. Strateg. Manag. J. 16:2 (1995), 119–141.
52. Marquis, C., Tilcsik, A., Imprinting: toward a multilevel theory. Acad. Manag. Ann. 7:1 (2013), 195–245.
53. Martin, X., Institutional advantage. Glob. Strateg. J. 4:1 (2014), 55–69.
54. Mays, K., Which foreign-owned carmakers build the most in America? Cars.com. https://www.cars.com/articles/2012/04/which-foreign-owned-carmakers-build-the-most-in-america/, 2012 (February 23, 2016).
55. Mezias, J.M., How to identify liabilities of foreignness and assess their effects on multinational corporations. J. Int. Manag. 8:3 (2002), 265–282.
56. Miller, S.R., Eden, L., Local density and foreign subsidiary performance. Acad. Manag. J. 49:2 (2006), 341–355.
57. Moeller, M., Harvey, M., Griffith, D., Richey, G., The impact of country-of-origin on the acceptance of foreign subsidiaries in host countries: an examination of the ‘liability-of-foreignness’. Int. Bus. Rev. 22:1 (2013), 89–99.
58. Nachum, L., Liability of foreignness in global competition? Financial service affiliates in the city of London. Strateg. Manag. J. 24:12 (2003), 1187–1208.
59. Nachum, L., When is foreignness an asset or a liability? Explaining the performance differential between foreign and local firms. J. Manag. 36:3 (2010), 714–739.
60. Nason, R.S., Wiklund, J., An assessment of resource-based theorizing on firm growth and suggestions for the future. J. Manag. 20:10 (2015), 1–29.
61. Newburry, W., Gardberg, N.A., Belkin, L.Y., Organizational attractiveness is in the eye of the beholder: the interaction of demographic characteristics with foreignness. J. Int. Bus. Stud. 37:5 (2006), 666–686.
62. Newburry, W., Gardberg, N.A., Sanchez, J.I., Employer attractiveness in Latin America: the association among foreignness, internationalization and talent recruitment. J. Int. Manag. 20:3 (2014), 327–344.
63. Noronha, C., Tea for Two. 2001, Tata Sons, Ltd. ( http://www.tata.com/article/inside/Y1VmRENiA68%3D/TLYVr3YPkMU%3D. February 10).
64. North, D.C., Institutions, Institutional Change and Economic Performance. 1990, Cambridge University Press, Cambridge.
65. Peng, M.W., The resource-based view and international business. J. Manag. 27:6 (2001), 803–829.
66. Peng, M.W., Identifying the big question in international business research. J. Int. Bus. Stud. 35:2 (2004), 99–108.
67. Peng, M.W., Wang, D.Y., Jiang, Y., An institution-based view of international business strategy: a focus on emerging economies. J. Int. Bus. Stud. 39:5 (2008), 920–936.
68. Penrose, E.T., The Theory of the Growth of the Firm. 1959, John Wiley and Sons, New York.
69. Peteraf, M.A., The cornerstones of competitive advantage: a resource-based view. Strateg. Manag. J. 14:3 (1993), 179–191.
70. Petersen, B., Pedersen, T., Lyles, M.A., Closing knowledge gaps in foreign markets. J. Int. Bus. Stud. 39:7 (2008), 1097–1113.
71. Porter, M.E., The Competitive Advantage of Nations. 1990, The Free Press, New York.
72. Ramamurti, R., What is really different about emerging market multinationals?. Glob. Strateg. J. 2:1 (2012), 41–47.
73. Regnér, P., Edman, J., MNE institutional advantage: how subunits shape, transpose and evade host country institutions. J. Int. Bus. Stud. 45:3 (2013), 275–302.
74. Rosenzweig, P.M., Singh, J.V., Organizational environments and the multinational enterprise. Acad. Manag. Rev. 16:2 (1991), 340–361.
75. Rowe, R., Mythbusting: American vs European vs Asian Cars. 2015, TopSpeed ( http://www.topspeed.com/cars/car-news/mythbusting-american-vs-european-vs-asian-cars-ar170943.html. February 23, 2016).
76. Rumelt, R.P., Towards a strategic theory of the firm. Lamb, R., (eds.) Competitive Strategic Management, 1984, Prentice Hall, Englewood Cliffs, NJ, 556–570.
77. Saxenian, A., The origins and dynamics of production networks in Silicon Valley. Res. Policy 20:5 (1991), 423–437.
78. Sethi, D., Judge, W., Reappraising liabilities of foreignness within an integrated perspective of the costs and benefits of doing business abroad. Int. Bus. Rev. 18:4 (2009), 404–416.
79. Sethi, D., Guisinger, S., Ford, D.L. Jr., Phelan, S.E., Seeking greener pastures: a theoretical and empirical investigation into the changing trend of foreign direct investment flows in response to institutional and strategic factors. Int. Bus. Rev. 11:6 (2002), 685–705.
80. Shi, W., Hoskisson, R.E., Advantages of foreignness: benefits of creative institutional deviance. Adv. Int. Manag. 25 (2012), 99–125.
81. Tata Global Beverages, Annual Report 2010/2011: Tata Global Beverages Group Limited. 2011.
82. Tata Global Beverages, Annual Report 2013/2014: Tata Global Beverages Group Limited. 2014.
83. Teece, D.J., A dynamic capabilities-based entrepreneurial theory of the multinational enterprise. J. Int. Bus. Stud. 45:1 (2014), 8–37.
84. Uhlenbruck, K., Developing acquired foreign subsidiaries: the experience of MNEs in transition economies. J. Int. Bus. Stud. 35:2 (2004), 109–123.
85. Uhlenbruck, K., Hitt, M.A., Semadeni, M., Market value effects of acquisitions involving Internet firms: a resource-based analysis. Strateg. Manag. J. 27:10 (2006), 899–913.
86. Un, C.A., The advantage of foreignness in innovation. Strateg. Manag. J. 32:11 (2011), 1232–1242.
87. Verbeke, A., International Business Strategy. 2nd ed., 2013, Cambridge University Press, New York.
88. Verlegh, P.W., Steenkamp, J.E., A review and meta-analysis of country-of-origin research. J. Econ. Psychol. 20:5 (1999), 521–546.
89. Whitley, R., Divergent Capitalisms: The Social Structuring and Change of Business Systems. 1999, Oxford University Press, New York.
90. Williamson, O.E., Markets and Hierarchies. 1975, The Free Press, New York.
91. Yildiz, H.E., Fey, C.F., The liability of foreignness reconsidered: new insights from the alternative research context of transforming economies. Int. Bus. Rev. 21:2 (2012), 269–280.
92. Zaheer, S., Overcoming the liability of foreignness. Acad. Manag. J. 38:2 (1995), 341–363.
93. Zaheer, S., Mosakowski, E., The dynamics of the liability of foreignness: a global study of survival in financial services. Strateg. Manag. J. 18:6 (1997), 439–463.
94. Zahra, S.A., Ireland, R.D., Hitt, M.A., International expansion by new venture firms: International diversity, mode of market entry, technological learning, and performance. Acad. Manag. J. 43:5 (2000), 925–950.