How Foreignness can be an Asset and a Liability for Firms

Jörg Zimmermann, Wolfgang Sofka

    Publikation: Bidrag til bog/antologi/rapportKonferenceabstrakt i proceedingsForskningpeer review

    Abstrakt

    Many modern firms compete globally. However, research is inconclusive on whether foreignness provides an asset or a liability in competition with domestic firms. We argue that foreign MNC subsidiaries are not per se advantaged or disadvantaged. We suggest that the distinction originates from the nature of the subsidiary’s activity in the host country. We focus on two activities: knowledge search and deployment. We predict theoretically that domestic firms have advantages from their embeddedness in the host country when they search for knowledge. However, foreign MNC subsidiaries have advantages in knowledge deployment because they draw from a richer, international knowledge pool. Still, these advantages accrue to all multinational firms, foreign and domestic. We test and support these predictions for a longitudinal dataset of 2900 firm observations in Spain. We develop recommendations for research and practice based on these findings.
    OriginalsprogEngelsk
    TitelProceedings of the 56th Annual Meeting of the Academy of International Business : Local Contexts in Global Business
    RedaktørerKlaus Meyer, Tunga Kiyak
    UdgivelsesstedEast Lansing, MI
    ForlagAcademy of International Business
    Publikationsdato2014
    Sider200-201
    StatusUdgivet - 2014
    BegivenhedAIB 2014 Annual Meeting : Local Context in Global Business - Westin Bayshore, Vancouver, Canada
    Varighed: 23 jun. 201426 jun. 2014
    Konferencens nummer: 56
    http://aib.msu.edu/events/2014/

    Konference

    KonferenceAIB 2014 Annual Meeting
    Nummer56
    LokationWestin Bayshore
    LandCanada
    ByVancouver
    Periode23/06/201426/06/2014
    Internetadresse
    NavnAcademy of International Business. Annual Meeting. Proceedings
    Vol/bind56
    ISSN2078-4430

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