Liabilities and benefits: Examining the two sides of the foreignness coin from entrepreneurial perspective

New Venture Survival: A Review and Extension

“…2019). Diverging from these findings are those relating to internationalization strategies with positive (Fariborzi and Keyhani 2018; Joardar and Wu 2017; Puig et al . 2014), negative (Yu and Kim 2013) and insignificant (Westhead et al .…”

An examination of sustainable development of supply chain using foreignness perspective

“…Yet others have found evidence of diminishing effects of foreignness (Kronborg & Thomsen, 2009; Mezias & Mezias, 2007). Joardar and Wu (2017) found evidence of changes in the effect of the level of foreignness on performance, providing further insight into the foreignness effect.…”

“…Hymer (1960) recognized that the barriers to international operations included lack of sufficient knowledge of foreign firms and discrimination by local governments, as well as by potential consumers and suppliers. Subsequently, this recognition of barriers developed into the concept of liability of foreignness (LOF), which refers to the phenomenon whereby foreign entities are at a disadvantage to their local counterparts due to their foreignness (Joardar & Wu, 2017; Zaheer, 1995). Despite potential disadvantages associated with foreignness, objectives such as the benefits associated with becoming a strategic insider may motivate a firm to consider doing business in countries that are significantly different from its home country (Magnani, Zucchella, & Floriani, 2018; Wu & Jia, 2018).…”

“…Recent research suggests that there are multiple facets of foreignness to be considered—(i) the effect of foreignness as a liability or benefit, (ii) level of analysis at the organizational or individual level, and (iii) the locus of foreignness as being internal or external to the entity under consideration (Harvey, Novicevic, Buckley, & Fung, 2005; Joardar, Kostova, & Wu, 2014; Joardar & Wu, 2011, 2017; Kostova & Roth, 2002; Kronborg & Thomsen, 2009; Mezias & Mezias, 2007; Newburry, Gardberg, & Belkin, 2006).…”

“…Similar to the liabilities, a foreign entity may also experience some unique advantages due to its foreignness. Benefits of foreignness (BOF) or assets of foreignness refers to the advantages experienced by an entity due to its foreignness (Joardar et al 2014; Joardar & Wu, 2017). Thus, in addition to liabilities, BOF such as the foreignness of a firm as its buffer against localized institutional pressures to be isomorphic, global brand name, resources, and capital should also be recognized (Kostova & Roth, 2002; Kronborg & Thomsen, 2009; Newburry et al 2006).…”