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How to identify liabilities of foreignness and assess their effects on multinational corporations
Affiliation:1. ESADE Business School, Ramon Llull University, Avenida Torre Blanca 59, 08172, Sant Cugat, Spain;2. ICN Business School, CEREFIGE, University of Lorraine, 13 rue Michel Ney, 54037, Nancy, France;3. Chung-Ang University, 84 Heukseok-Ro, Dongjak-Gu, 156-756 Seoul, South Korea;1. Sun Yat-Sen Business School, Sun Yat-Sen University, Guangzhou, Guangdong Province, China;2. Texas Christian University, Fort Worth, TX 76129, USA;3. City University London, London, UK;4. Vienna University of Economics and Business, Vienna, Austria;1. Global Management, Helen Jackson Chair of International Management, Atkinson Graduate School of Management, Willamette University, 900 State Street, Salem, OR 97301, USA;2. International Business, UQ Business School, The University of Queensland, St Lucia 4072, QLD, Australia;1. University of Ottawa, Canada;1. Northeastern University, D’Amore-McKim School of Business, 360 Huntington Avenue, Boston, MA 02115, USA;2. King’s College, Department of International Development, London, WC2R 2LS, UK;3. Butler University, Lacy School of Business, 4600 Sunset Ave, Indianapolis, IN 46208, USA;4. INCAE Business School, Campus Walter Kissling Gam, Alajuela, Costa Rica;1. University of Giessen, Licher Str. 62, 35394 Giessen, Germany;2. Technical University of Kaiserslautern, Gottlieb-Daimler Str.42, 67653 Kaiserslautern, Germany;3. Heinrich-Heine University of Duesseldorf, Universitaetsstraße 1, 40225 Düsseldorf, Germany;4. University of Paderborn, Technologiepark 11, 33098 Paderborn, Germany
Abstract:This article examines the liabilities of foreignness construct and discusses key methodological and research design issues facing liability of foreignness researchers. After reviewing past studies and more recent liabilities of foreignness research, I discuss definitional issues related to this construct. I then present a two-part research framework designed to first help identify a specific liability of foreignness in a focal country, and then help identify factors that minimize the effects of that specific liabilities of foreignness. I also discuss multinational management issues at the corporation level that likely affect liabilities of foreignness experienced at the foreign subsidiary level.
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