Do Chinese firms incur a liability of localness as a result of inward foreign direct investment? Local firms’ perspective
Liability of foreignness has been one of the building blocks of theories of multinational enterprises. This paper looks at a parallel issue - the liability of localness that local firms may face as a result of foreign firms’ presence in their country. The results show that while local Chinese firms...
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| Other Authors: | |
| Format: | Conference Paper |
| Published: |
ANZIBA
2012
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/36049 |
| _version_ | 1848754661461327872 |
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| author | Jiang, Fuming Stening, B. |
| author2 | Hussain Rammal |
| author_facet | Hussain Rammal Jiang, Fuming 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 theories of multinational enterprises. This paper looks at a parallel issue - the liability of localness that local firms may face as a result of foreign firms’ presence in their country. The results show that while local Chinese firms enjoy superior location based advantages over their foreign counterparts and these, together with their firm-specific advantages, have a significant positive effect on their performance, foreign firms’ superior firm-specific and multinationality advantages appear to erase the magnitude of such effects and create a significant negative impact on local Chinese firms’ performance. This suggests that local Chinese firms incur a liability of localness at home in relation to the presence of foreign firms in the country. |
| first_indexed | 2025-11-14T08:43:57Z |
| format | Conference Paper |
| id | curtin-20.500.11937-36049 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:43:57Z |
| publishDate | 2012 |
| publisher | ANZIBA |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-360492017-01-30T13:53:20Z Do Chinese firms incur a liability of localness as a result of inward foreign direct investment? Local firms’ perspective Jiang, Fuming Stening, B. Hussain Rammal foreign firms Liability of localness local firms China Liability of foreignness has been one of the building blocks of theories of multinational enterprises. This paper looks at a parallel issue - the liability of localness that local firms may face as a result of foreign firms’ presence in their country. The results show that while local Chinese firms enjoy superior location based advantages over their foreign counterparts and these, together with their firm-specific advantages, have a significant positive effect on their performance, foreign firms’ superior firm-specific and multinationality advantages appear to erase the magnitude of such effects and create a significant negative impact on local Chinese firms’ performance. This suggests that local Chinese firms incur a liability of localness at home in relation to the presence of foreign firms in the country. 2012 Conference Paper http://hdl.handle.net/20.500.11937/36049 ANZIBA restricted |
| spellingShingle | foreign firms Liability of localness local firms China Jiang, Fuming Stening, B. Do Chinese firms incur a liability of localness as a result of inward foreign direct investment? Local firms’ perspective |
| title | Do Chinese firms incur a liability of localness as a result of inward foreign direct investment? Local firms’ perspective |
| title_full | Do Chinese firms incur a liability of localness as a result of inward foreign direct investment? Local firms’ perspective |
| title_fullStr | Do Chinese firms incur a liability of localness as a result of inward foreign direct investment? Local firms’ perspective |
| title_full_unstemmed | Do Chinese firms incur a liability of localness as a result of inward foreign direct investment? Local firms’ perspective |
| title_short | Do Chinese firms incur a liability of localness as a result of inward foreign direct investment? Local firms’ perspective |
| title_sort | do chinese firms incur a liability of localness as a result of inward foreign direct investment? local firms’ perspective |
| topic | foreign firms Liability of localness local firms China |
| url | http://hdl.handle.net/20.500.11937/36049 |