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Relieving status anxiety: How low-status firms respond to international status-heterophilous relationships

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  • Ma, Xufei
  • Deng, Ziliang
  • Tang, Yi

Abstract

Partnerships between firms from relatively high- and low-status countries are prevalent in international businesses. However, the strategic implications of such status-heterophilous relationships remain under-explored. Our study employs a construct of status anxiety to describe the concerns of firms from low-status countries regarding their low bargaining power and the sustainability of their relationship with partners from high-status foreign countries. We hypothesize that status anxiety motivates firms from low-status countries to increase their investment in technological research and development. This study is among the first to incorporate social status as a new theoretical perspective for examining international status-heterophilous associations and strategic responses.

Suggested Citation

  • Ma, Xufei & Deng, Ziliang & Tang, Yi, 2021. "Relieving status anxiety: How low-status firms respond to international status-heterophilous relationships," Journal of World Business, Elsevier, vol. 56(6).
    • Handle: RePEc:eee:worbus:v:56:y:2021:i:6:s1090951621000705
    DOI: 10.1016/j.jwb.2021.101259
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