The impact of country-of-origin on the acceptance of foreign subsidiaries in host countries: An examination of the ‘liability-of-foreignness’
This paper examines the relationship between an organization's country-of-origin and the acceptance into a host country environment by constituents such as vendors, suppliers, and distributors. This study contributes to the literature by proposing the examination and ultimate measurement of various tangible and intangible sources of the ‘liabilities of foreignness’. Additionally we show that are these sources are internal and external moderators of perceived acceptance in the host country. Manager must recognize the country-of-origin strategic options to address the negative overshadowing of the liability-of foreignness. We conclude that not doing so can create a stigma that may be attached to the overall organization, its image, products, brands, and to its employees. Further, negative attribution may be caste upon all the identifying characteristics of the foreign entity. The management of the firm must note the potential resistance to accept the organization and its products/services and must develop a proactive set of strategies to address the negativism of the host country constituents.
If 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.
Volume (Year): 22 (2013)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic|
References listed on IDEAS
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.:
- Griffith, David A., 2010. "Understanding multi-level institutional convergence effects on international market segments and global marketing strategy," Journal of World Business, Elsevier, vol. 45(1), pages 59-67, January.
- Amine, Lyn Suzanne, 2008. "Country-of-origin, animosity and consumer response: Marketing implications of anti-Americanism and Francophobia," International Business Review, Elsevier, vol. 17(4), pages 402-422, August.
- Harvey, Michael & Novicevic, Milorad M. & Buckley, M. Ronald & Fung, Helen, 2005. "Reducing inpatriate managers' 'Liability of Foreignness' by addressing stigmatization and stereotype threats," Journal of World Business, Elsevier, vol. 40(3), pages 267-280, August.
- Erickson, Gary M & Johansson, Johny K & Chao, Paul, 1984. " Image Variables in Multi-Attribute Product Evaluations: Country-of-Origin Effects," Journal of Consumer Research, University of Chicago Press, vol. 11(2), pages 694-99, September.
- Wagner, Hardy, 2004. "Internationalization speed and cost efficiency: evidence from Germany," International Business Review, Elsevier, vol. 13(4), pages 447-463, August.
- Calhoun, Mikelle A., 2002. "Unpacking liability of foreignness: identifying culturally driven external and internal sources of liability for the foreign subsidiary," Journal of International Management, Elsevier, vol. 8(3), pages 301-321.
- Harvey, Michael & Novicevic, Milorad M., 2002. "The hypercompetitive global marketplace: the importance of intuition and creativity in expatriate managers," Journal of World Business, Elsevier, vol. 37(2), pages 127-138, July.
- Meschi, Pierre-Xavier & Riccio, Edson Luiz, 2008. "Country risk, national cultural differences between partners and survival of international joint ventures in Brazil," International Business Review, Elsevier, vol. 17(3), pages 250-266, June.
- JosÈ Antonio Ocampo, 2002. "Rethinking the development agenda," Cambridge Journal of Economics, Oxford University Press, vol. 26(3), pages 393-407, May.
- Riddle, Liesl & Brinkerhoff, Jennifer, 2011. "Diaspora entrepreneurs as institutional change agents: The case of Thamel.com," International Business Review, Elsevier, vol. 20(6), pages 670-680.
- Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan, vol. 19(3), pages 411-432, September.
- Mascarenhas, Briance, 1995. "International industry evolution patterns," International Business Review, Elsevier, vol. 4(2), pages 233-246, June.
- Martin S Roth & Jean B Romeo, 1992. "Matching Product Category and Country Image Perceptions: A Framework for Managing Country-of-Origin Effects," Journal of International Business Studies, Palgrave Macmillan, vol. 23(3), pages 477-497, September.
When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:22:y:2013:i:1:p:89-99. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
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.