Overcoming the Liability of Foreignness

Zaheer, Srilata

doi:10.5465/256683

Cited by 1,646 publications

(2,251 citation statements)

References 20 publications

Supporting

Mentioning

2,191

Contrasting

Unclassified

Order By: Relevance

“…Em tais ambientes, ter um parceiro local permite acesso a conhecimentos sobre as leis e regulamentos do país de destino, e assim mitigar a desvantagem do estrangeiro (Zaheer, 1995 …”

Section: Pilar Institucional Regulatóriounclassified

Teoria Institucional E Modos De Entrada De Multinacionais De Países Emergentes

Rocha

Ávila²

2015

Rev. adm. empres.

View full text Add to dashboard Cite

RESUMOEste ensaio teórico busca analisar os espaços de contribuição da perspectiva institucional de análise para o entendimento das escolhas de modo de entrada de empresas multinacionais provenientes de países emergentes. Modos de entrada referem-se às decisões de grau de controle da subsidiá-ria (subsidiária integral versus joint venture). Alguns autores propõem que o modo de entrada seria influenciado pelas três dimensões do ambiente institucional: distância regulatória, normativa e cultural-cognitiva entre o país hospedeiro e o país de origem da empresa investidora. A partir de ampla revisão bibliográfica, são identificados fatores relacionados aos três pilares do ambiente institucional e formuladas proposições para orientar estudos empíricos futuros sobre modos de entrada de multinacionais de países emergentes.PALAVRAS-CHAVE | Institucionalismo, modos de entrada, multinacionais, distância institucional, paí-ses emergentes. ABSTRACT This essay aims at contributing to the analysis of the spaces for contribution of the institutional perspective of analysis to advance the understanding of entry mode choices by multinational firms from emerging markets. Entry modes refer to the decisions involving the degree of control of a subsidiary (wholly-owned versus joint venture). Some authors propose that three dimensions of the institutional environment influence the entry mode decision: regulative distance, normative distance and cultural--cognitive distance between the host country and the country of origin of the investing firm. Starting from a broad review of the extant literature, this study identifies factors related to the three pillars of the institutional environment and advances propositions to be tested in future studies on entry mode choices of emerging market multinationals. KEYWORDS | Institutionalism, entry modes, multinationals, institutional distance, emerging countries. RESUMEN Ese ensayo teórico busca analizar los espacios de contribución de la perspectiva institucional de aná-lisis para el entendimiento de las elecciones del modo de ingreso de empresas multinacionales provenientes de países emergentes. Modos de ingreso se refieren a las decisiones de grado de control de la subsidiaria (subsidiaria integral versus joint venture RAE-Revista de Administração de Empresas | FGV-EAESP

show abstract

“…Em tais ambientes, ter um parceiro local permite acesso a conhecimentos sobre as leis e regulamentos do país de destino, e assim mitigar a desvantagem do estrangeiro (Zaheer, 1995 …”

Section: Pilar Institucional Regulatóriounclassified

Teoria Institucional E Modos De Entrada De Multinacionais De Países Emergentes

Rocha

Ávila²

2015

Rev. adm. empres.

View full text Add to dashboard Cite

show abstract

“…Firm-specific managerial and organisational capabilities may provide competitive advantages to counter LOF. However, institutional theorists argued that MNE subunits deal with the local environmental demands by mimicking the practise of successful, local firms (Rosenzweig & Singh, 1991;Zaheer, 1995). In the field of non-market strategy, this divergent view translates into whether foreign firms bring their experience to the new host country, or whether they attempt to align their local strategy with the best-performing domestic models.…”

Section: Liability Of Foreignness and Cpsmentioning

confidence: 99%

“…These added costs arise from multiple sources, such as unfamiliarity with the local environment, cultural, political and economic differences, higher coordination cost across geographic distances, a lack of information networks or political influence; or the inability to appeal to local, patriotic customers (Zaheer, 1995;Zaheer & Mosakowski, 1997). According to Sethi and Guisinger (2002) it is important that LOF be differentiated from two other concepts: lack of fit, which occurs where firm strategy is incompatible with the environment, and liability of newness, which is the high failure rate associated with new organisations and these challenges can be incurred by both domestic and multinational organisations.…”

Section: Liability Of Foreignness and Cpsmentioning

confidence: 99%

“…Subsidiaries will often import skills and resources unique to the MNE to overcome LOF (Zaheer, 1995). Firm-specific managerial and organisational capabilities may provide competitive advantages to counter LOF.…”

Section: Liability Of Foreignness and Cpsmentioning

confidence: 99%

“…An additional benefit from comparing foreign and local firms' political activities is to derive insights into the role of liability of foreignness (e.g. Hillman, 2003;Zaheer, 1995). Foreign MNEs can trigger tough responses from local institutions by not using, or improperly implementing accepted practices, and the resultant tensions enhance the liability of foreignness and shape MNE strategic responses (Luo & Mezias, 2002).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations