Coping with liability of foreignness: Different learning engagements of entrant firms
AbstractMuch has been written about how international firms create and sustain firm-specific advantages that offset their liability of foreignness. Less attention has been devoted to the question of how international firms reduce their liability of foreignness. It is the contention of this study that as a consequence of managerial discretion, such as willingness to undertake local adaptation, international firms familiarize with foreign markets at different paces. The data from a sample of 494 international firms from Sweden, Denmark, and New Zealand suggest that entrant firms' learning engagement, i.e., the effort and ability to learn how to conduct business in a foreign environment, varies considerably. In particular, adoption of standardized international business routines and unwillingness to adapt products and marketing practices to local markets seem to be associated with a low learning engagement. The data also indicate that a large proportion of the entrant firms has been engaged in preentry learning.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of International Management.
Volume (Year): 8 (2002)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan, vol. 8(1), pages 23-32, March.
- Wolfgang Sofka & Joerg Zimmermann, 2005.
"There is no Place Like Home: A Strategic Framework to Overcome Liability of Foreignness in the German Car Market,"
- Sofka, Wolfgang & Zimmermann, Jörg, 2005. "There's no Place Like Home: A Strategic Framework to Overcome Liability of Foreignness in the German Car Market," ZEW Discussion Papers 05-84, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Denk, Nikola & Kaufmann, Lutz & Roesch, Jan-Frederik, 2012. "Liabilities of Foreignness Revisited: A Review of Contemporary Studies and Recommendations for Future Research," Journal of International Management, Elsevier, vol. 18(4), pages 322-334.
- Sofka, Wolfgang & Zimmermann, Jörg, 2008. "Regional economic stress as moderator of liability of foreignness," Journal of International Management, Elsevier, vol. 14(2), pages 155-172, June.
- Wolfgang Sofka & JÃ¶rg Zimmermann, 2007.
"Regional Dimensions of Liability of Foreignness: Between a Rock and a Hard Place?,"
Papers on Entrepreneurship, Growth and Public Policy
2007-12, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Wolfgang Sofka & Joerg Zimmermann, 2007. "Regional Dimensions of Liability of Foreignness: Between a Rock and a Hard Place?," Jena Economic Research Papers 2007-023, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Sethi, Deepak & Judge, William, 2009. "Reappraising liabilities of foreignness within an integrated perspective of the costs and benefits of doing business abroad," International Business Review, Elsevier, vol. 18(4), pages 404-416, August.
- Elango, B., 2009. "Minimizing effects of 'liability of foreignness': Response strategies of foreign firms in the United States," Journal of World Business, Elsevier, vol. 44(1), pages 51-62, January.
- Joardar, Arpita & Kostova, Tatiana & Ravlin, Elizabeth C., 2007. "An experimental study of the acceptance of a foreign newcomer into a workgroup," Journal of International Management, Elsevier, vol. 13(4), pages 513-537, December.
- Jensen, Peter D. Ørberg, 2009. "A learning perspective on the offshoring of advanced services," Journal of International Management, Elsevier, vol. 15(2), pages 181-193, June.
- repec:emp:wpaper:ec8-127-i is not listed on IDEAS
- Chelekis, Jessica & Mudambi, Susan M., 2010. "MNCs and micro-entrepreneurship in emerging economies: The case of Avon in the Amazon," Journal of International Management, Elsevier, vol. 16(4), pages 412-424, December.
- Ulrich Kaiser & Wolfgang Sofka, 2007.
"The Pulse of Liability of Foreignness: Dynamic Legitimacy and Experience Effects in the German Car Market,"
CIE Discussion Papers
2007-01, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
- Kaiser, Ulrich & Sofka, Wolfgang, 2006. "The pulse of liability of foreignness: dynamic legitimacy and experiences effects in the German car market," ZEW Discussion Papers 06-70, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Tobias Schmidt & Wolfgang Sofka, 2005. "Lost in Translation - Empirical Evidence for Liability of Foreignness as Barriers to Knowledge Spillovers," Industrial Organization 0512012, EconWPA.
- repec:emp:wpaper:ec8-126-i is not listed on IDEAS
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.