Abstract
The liability of origin makes participation in international technology licensing challenging for emerging market firms. We draw on signaling theory and argue that diaspora ownership—diasporan equity investment—constitutes a reliable signal of firm quality and trustworthiness which facilitates emerging market firms’ access to international technology licensing. We theorize further about how the efficacy of diaspora ownership as a credibility-enhancing mechanism varies with the firm’s subnational context characteristics. We test our argument on a matched sample of 588 Indian manufacturing firms operating between 2006 and 2015 and find general support for the predicted relationships.
| Original language | English |
|---|---|
| Publication date | 2019 |
| Number of pages | 37 |
| Publication status | Published - 2019 |
| Event | DRUID19 Conference - Copenhagen Business School, Frederiksberg, Denmark Duration: 19 Jun 2019 → 21 Jun 2019 Conference number: 41 https://conference.druid.dk/Druid/?confId=59 |
Conference
| Conference | DRUID19 Conference |
|---|---|
| Number | 41 |
| Location | Copenhagen Business School |
| Country/Territory | Denmark |
| City | Frederiksberg |
| Period | 19/06/2019 → 21/06/2019 |
| Internet address |
Keywords
- Emerging market firms
- International technology licensing
- Diaspora ownership
- Liability of origin
- Signaling theory
- Subnational environments