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The liability of foreignness reconsidered: New insights from the alternative research context of transforming economies
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
2012 (English)In: International Business Review, ISSN 0969-5931, E-ISSN 1873-6149, Vol. 21, no 2, 269-280 p.Article in journal (Refereed) Published
Abstract [en]

Institutional theory has been increasingly used to decipher implications of the liability of being a foreign firm. Earlier studies have argued that multinational corporations bear social costs arising from lack of legitimacy and thus need to engage in isomorphism to increase their likelihood of survival. Drawing on insights gained from transforming economies, this study reconsiders the espoused relationships among legitimacy, local isomorphism, and overcoming the liability of foreignness. We argue that idiosyncrasies of transforming economies could engender (1) varying levels of need for gaining legitimacy of local constituents and (2) alternative ways other than local isomorphism for gaining legitimacy from local institutional actors.

Place, publisher, year, edition, pages
2012. Vol. 21, no 2, 269-280 p.
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:uu:diva-324539OAI: oai:DiVA.org:uu-324539DiVA: diva2:1110273
Available from: 2017-06-15 Created: 2017-06-15 Last updated: 2017-06-15

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CiteExportLink to record
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Citation style
  • apa
  • harvard1
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