Liabilities of Foreignness Revisited: A Review of Contemporary Studies and Recommendations for Future Research

Denk, Nikola; Kaufmann, Lutz; Roesch, Jan-Frederik

doi:10.1016/j.intman.2012.07.001

Cited by 178 publications

(152 citation statements)

References 104 publications

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“…Following this, regulatory bodies such as SEBI and other departments have represented their erratic behavior and thereby delayed the government approvals when Cairn Energy approached them. We suggest that this streak supports the theory of liability of foreignness (Denk, Kaufmann, & Roesch, 2012;Zaheer, 1995). Albeit, Vedanta and Cairn Energy have set the deadline April 15, 2011, but it delayed, then finally completed in December, 2011.…”

Section: Country-specific Determinantssupporting

confidence: 63%

Why Do Cross-Border Merger/Acquisition Deals Become Delayed, or Unsuccessful? A Cross-Case Analysis in the Dynamic Industries

Reddy

2015

SSRN Journal

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The purpose of this paper is to analyze three litigated cross-border inbound acquisitions that associated with Asian emerging market-India, namely Vodafone-Hutchison and Bharti Airtel-MTN deals in the telecommunications industry, and Vedanta-Cairn India deal with oil and gas exploration industry. To do so, we adopt a legitimate method in qualitative research, that is, case study method and thereby perform a unit of analysis and cross-case analysis. We suggest that government officials' erratic nature and ruling political party influence were more in foreign inward deals that characterize higher bid value, listed target company, cash payment, and stronger government control in the industry. Importantly, the liability of foreignness and liability of localness was found to be severe in Indian-hosted deals that describe higher valuation, cash payment and dynamic industry. We eventually propose implications of mergers and acquisitions for extractive industries thus to enhance productivity and improve welfare measures during post-integration phase. JEL Classification: G34

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Section: Country-specific Determinantssupporting

confidence: 63%

Why Do Cross-Border Merger/Acquisition Deals Become Delayed, or Unsuccessful? A Cross-Case Analysis in the Dynamic Industries

Reddy

2015

SSRN Journal

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“…Hence, our study complements existing studies that investigate the supply-side in business banking, e.g. the lower efficiency of foreign banks relative to domestic banks (Ataullah & Le, 2004;Denk et al, 2012). Although it has been assumed that a lack of trust is a key driver of relational hazards that may constitute a disadvantage for foreign firms resulting in a lower efficiency of foreign firms relative to domestic firms (Denk et al, 2012), differences between consumer trust in foreign banks and domestic banks have not been empirically investigated as yet.…”

Section: Discussionmentioning

confidence: 70%

Get in with a Foreigner: Consumer Trust in Domestic and Foreign Banks

Bönte¹,

Filipiak²,

Lombardo³

2017

IJEF

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Prior research suggests that trust plays an important role in an individual's decision to participate in financial markets. This paper focuses on potential customers in retail banking markets and empirically investigates their trust in foreign banks and domestic banks. We argue that differences in customer trust can be related to three factors, namely bank-specific characteristics, individual characteristics of the potential customer and characteristics of the institutional environment. Using a large survey on the savings patterns of Indian households, we find that potential retail banking customers in India are less likely to trust foreign banks with their money than private Indian banks. However, our results also suggest that highly educated Indians using information sources such as the Internet, radio or newspaper, tend to have more confidence in foreign banks than in private Indian banks. Moreover, in regions with either more foreign bank branches or higher corruption levels the likelihood of consumers trusting Indian private banks more than foreign banks is lower than in other regions.

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“…Recent research, however, also points to the benefits that may result from foreignness, inviting us to view foreignness not only as a liability but also potentially as an asset (Nachum 2010b;Denk et al 2012;Joardar et al 2014). While the discussion on the assets of foreignness has been growing, scholars have only begun to investigate the scenarios in which positive or negative outcomes will prevail as a result of foreignness (Joardar et al 2014).…”

Section: Introductionmentioning

confidence: 99%

“…Even though inter-organizational learning in a group setting has been viewed as essential for the successful operations of foreign companies, there is still a dearth of empirical qualitative studies scrutinizing the dynamics of learning in international business (Keupp and Gassmann 2009;Fletcher et al 2013). This gap is even deeper within the context of the assets of foreignness literature, which welcomes further insight on the dynamics of how firms operate within networks (Denk et al 2012).…”

Section: Introductionmentioning

confidence: 99%

The Embedding of Transnational Entrepreneurs in Diaspora Networks: Leveraging the Assets of Foreignness

2017

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The Strathprints institutional repository (https://strathprints.strath.ac.uk) is a digital archive of University of Strathclyde research outputs. It has been developed to disseminate open access research outputs, expose data about those outputs, and enable the management and persistent access to Strathclyde's intellectual output. Abstract In this paper we examine how foreign actors capitalize on their ethnic identity to gain skills and capabilities that enable them to operate in a new and strange environment. We explore the mechanisms by which Bulgarian entrepreneurs in London use their ethnic identity to develop competitive advantage and business contacts. We find that the entrepreneurs studied gain access to a diaspora network, which enables them to develop essential business capabilities and integrate knowledge from both home and host country environments. The diaspora community possesses a collective asset (transactive memory) that allows its members to remove competition from the interfirm level to the network level (i.e., diaspora networks vs. networks of native businesspeople). Additionally, the cultural identity and networks to which community members have access provide bridging capabilities that allow diaspora businesspeople to make links to host country business partners and thus embed themselves in the host country environment. Thus, this paper adds to the growing body of work showing how foreignness can serve as an asset in addition to its better-known role as a liability. RESEARCH ARTICLE

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Liabilities of Foreignness Revisited: A Review of Contemporary Studies and Recommendations for Future Research

Cited by 178 publications

References 104 publications

Why Do Cross-Border Merger/Acquisition Deals Become Delayed, or Unsuccessful? A Cross-Case Analysis in the Dynamic Industries

Why Do Cross-Border Merger/Acquisition Deals Become Delayed, or Unsuccessful? A Cross-Case Analysis in the Dynamic Industries

Get in with a Foreigner: Consumer Trust in Domestic and Foreign Banks

The Embedding of Transnational Entrepreneurs in Diaspora Networks: Leveraging the Assets of Foreignness

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