Do Foreign Firms in China Incur a Liability of Foreignness? The Local Chinese Firms’ Perspective
Liability of foreignness has been one of the building blocks of multinational enterprise theory development, but we have limited knowledge about the liability of foreignness in the context of multinationals operating in developing countries. This study suggests that in a developing country like Chin...
| Main Authors: | , , |
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| Format: | Journal Article |
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Wiley Periodicals Inc
2014
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| Online Access: | http://hdl.handle.net/20.500.11937/33253 |
| _version_ | 1848753893894258688 |
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| author | Jiang, Fuming Liu, L. Stening, B. |
| author_facet | Jiang, Fuming Liu, L. Stening, B. |
| author_sort | Jiang, Fuming |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Liability of foreignness has been one of the building blocks of multinational enterprise theory development, but we have limited knowledge about the liability of foreignness in the context of multinationals operating in developing countries. This study suggests that in a developing country like China, foreignness may still exist, but its negative impact on foreign firms’ performance may have become insignificant. Local Chinese firms were found to enjoy significant location-based advantages over their foreign counterparts, contributing to liability of foreignness. However, the adverse effects of liability of foreignness on foreign firms appear to be off-set by the foreign firms’ superior firm-specific and multinationality advantages over local Chinese firms. Further, the location-based advantages that foreign firms have built up over time further serve to strength their overall competitive position in China. |
| first_indexed | 2025-11-14T08:31:45Z |
| format | Journal Article |
| id | curtin-20.500.11937-33253 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:31:45Z |
| publishDate | 2014 |
| publisher | Wiley Periodicals Inc |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-332532020-06-30T05:41:09Z Do Foreign Firms in China Incur a Liability of Foreignness? The Local Chinese Firms’ Perspective Jiang, Fuming Liu, L. Stening, B. foreign firms emerging markets Liability of foreignness local firms China Liability of foreignness has been one of the building blocks of multinational enterprise theory development, but we have limited knowledge about the liability of foreignness in the context of multinationals operating in developing countries. This study suggests that in a developing country like China, foreignness may still exist, but its negative impact on foreign firms’ performance may have become insignificant. Local Chinese firms were found to enjoy significant location-based advantages over their foreign counterparts, contributing to liability of foreignness. However, the adverse effects of liability of foreignness on foreign firms appear to be off-set by the foreign firms’ superior firm-specific and multinationality advantages over local Chinese firms. Further, the location-based advantages that foreign firms have built up over time further serve to strength their overall competitive position in China. 2014 Journal Article http://hdl.handle.net/20.500.11937/33253 10.1002/tie.21649 Wiley Periodicals Inc fulltext |
| spellingShingle | foreign firms emerging markets Liability of foreignness local firms China Jiang, Fuming Liu, L. Stening, B. Do Foreign Firms in China Incur a Liability of Foreignness? The Local Chinese Firms’ Perspective |
| title | Do Foreign Firms in China Incur a Liability of Foreignness? The Local Chinese Firms’ Perspective |
| title_full | Do Foreign Firms in China Incur a Liability of Foreignness? The Local Chinese Firms’ Perspective |
| title_fullStr | Do Foreign Firms in China Incur a Liability of Foreignness? The Local Chinese Firms’ Perspective |
| title_full_unstemmed | Do Foreign Firms in China Incur a Liability of Foreignness? The Local Chinese Firms’ Perspective |
| title_short | Do Foreign Firms in China Incur a Liability of Foreignness? The Local Chinese Firms’ Perspective |
| title_sort | do foreign firms in china incur a liability of foreignness? the local chinese firms’ perspective |
| topic | foreign firms emerging markets Liability of foreignness local firms China |
| url | http://hdl.handle.net/20.500.11937/33253 |