Liability of Emergingness of Emerging Market Multinationals in Developed Markets: A Conceptual Approach

Held, Katrin; Berg, Nicola

doi:10.1057/9781137472281_2

Cited by 8 publications

(6 citation statements)

References 97 publications

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“…In their study of local resistance to the acquisition of a New Zealand dairy farm, Yu and Liu (2018) demonstrated how resistance was partially due to a cold and incompetent stereotype. SANY, a Chinese firm, also faced resistance to internationalization efforts in the United States, by the United States Government, and in Germany, by employees of the German concrete pump manufacturer, Putzmeister (Held & Berg, 2014, 2015). Resistance was partially due to fears concerning the intentions of the Chinese firm, as well as a low‐quality stereotype, typically associated with emerging countries (McMahon, 2012).…”

Section: Stereotype Based Conceptualization Of Foreignnessmentioning

confidence: 99%

“…While local stakeholders often confer favorable stereotypes on local firms (Mallon & Fainshmidt, 2017; Maruyama & Wu, 2015), foreign MNEs—based in countries that are allies in current and/or historical geopolitical relationships—can also enjoy favorable perceptions with local stakeholders. When these foreign MNEs also enjoy favorable perceptions for high quality, local stakeholders can stereotype them as both warm and competent (Bertrand et al, 2016; Held & Berg, 2015). A warm stereotype can also be due to good reputations of the foreign firms or their industries (Haslam et al, 2019; Vidaver‐Cohen, Gomez, & Colwell, 2015), constituting an ideal situation for foreign MNEs.…”

Section: Stereotype Based Conceptualization Of Foreignnessmentioning

confidence: 99%

“…While early internationalization of firms suffered from LOFs due to a low warmth stereotype, recent internationalization of MNEs from emerging countries (EMNEs) has caused these businesses to suffer from LOFs due to a low competence stereotype (Buckley et al, 2016; Held & Berg, 2015), often one associated with perceptions of their home countries. Even among other emerging countries, local stakeholders often stereotype EMNEs as having low competence (Held & Berg, 2014; Madhok & Keyhani, 2012).…”

Section: Stereotype Based Conceptualization Of Foreignnessmentioning

confidence: 99%

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How local stakeholder stereotypes impact liability of foreignness and asset of foreignness

Ige

Washington

2022

Thunderbird Intl Bus Rev

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While it is well known that there are liabilities of foreignness (LOFs) that impact firms as they enter foreign markets, it is less well known how stereotypes held by local stakeholders impact LOFs of foreign firms. Recent research has demonstrated that foreignness can offer benefits, or assets of foreignness (AOFs), for firms as they enter foreign markets. While research is growing in this area, there remains a gap in our understanding of how local stakeholders evaluate foreign firms. We leverage the stereotype content model, which measures dimensions of warmth and competence, to demonstrate that a foreign firm can enjoy an AOF, suffer from a LOF, or contend with both, depending on stereotypes held by local stakeholders. We associate four different combinations of warmth and competence stereotypes with AOFs and LOFs to reveal that the strategies of foreign firms for managing foreignness should attend to stereotypes held by local stakeholders. Finally, we propose several strategies that foreign firms can employ as they manage unfavorable stereotypes.

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Section: Stereotype Based Conceptualization Of Foreignnessmentioning

confidence: 99%

Section: Stereotype Based Conceptualization Of Foreignnessmentioning

confidence: 99%

Section: Stereotype Based Conceptualization Of Foreignnessmentioning

confidence: 99%

See 1 more Smart Citation

How local stakeholder stereotypes impact liability of foreignness and asset of foreignness

Ige

Washington

2022

Thunderbird Intl Bus Rev

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“…Stereotypes represent individuals' cognitive associations and expectations about any societal group (Fiske and Taylor, 1991), while national stereotypes are qualities perceived to be associated with a nation's citizens (Schneider, 2005). Building and maintaining a strong nation brand is of pivotal importance to emerging market firms, as their products and brands often suffer from the so-called "liability of emergingness" (Held and Berg, 2015).…”

Section: Country Brandingmentioning

confidence: 99%

Nation branding, cultural identity and political polarization – an exploratory framework

Vecchi

Silva

Angel

2020

IMR

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PurposeThe objective of this research is to propose a framework which is apt to assess how a nation branding campaign could promote cultural identity by ultimately curbing political polarization.Design/methodology/approachBy relying on a multidisciplinary approach that blends theoretical constructs from different fields the methodology is based on a mixed-method approach whereby the qualitative data stemming from a set of interviews with key-informants is coupled by a survey of Colombian citizens in order to gain in-depth insights over the impact of nation branding on political polarization.FindingsFrom the findings, it emerges that a campaign based on nation branding and targeting domestic citizens could curb political polarization within Colombia, by also fostering cultural identity.Research limitations/implicationsThe study considers only Colombia. To fully assess the robustness of the framework it would be useful to extend the analysis to a broader range of countries and to a wider set of domestic issues.Practical implicationsThe research not only provides in-depth insights on how nation branding can be used effectively in order to curb political polarization but also practical guidance on how a nation branding campaign can be effectively designed. The findings are relevant to policy-makers that have the opportunity to implement informed and educated nation branding campaigns not just overseas, but also to strategically address important domestic issues by engaging the domestic stakeholders.Originality/valueWhile country branding has been extensively investigated within the context of international business, we have a relatively limited understanding of its domestic impact. In contrast to traditional country branding literature, this paper aims to theoretically advance our understanding of nation branding and its effect on political polarization, as well as gauging its impact on cultural identity.

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“…Emerging markets firms have been thought to be laboring under a liability of newness or foreignness (Cohen and Levinthal, 1990;Qian et al, 2013;Singh et al, 1986;Zaheer and Mosakowski, 1997), to be embedded in contexts with fewer institutional resources or infrastructure (Miller et al, 2009;Rottig, 2016) and to generally be constrained in developing comparable levels of competitive advantage to developed market firms (Narula and Kodiyat, 2016). Similarly, a liability of emergingness has been identified as a potential hindrance to the competitiveness and expansion of firms from developing markets (Held and Berg, 2015). In contrast, another research direction has suggested that rather than a deficit to be overcome (Zaheer, 1995), the "liability of foreignness" takes a more dynamic and efficacious form as companies expand their reach internationally, beyond the country and region of origin (Zhou and Guill en, 2015).…”

mentioning

confidence: 99%

Navigating the digital revolution and crisis times: humanitarian and innovation-inspired leadership through the pandemic

Park

2021

JSMA

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PurposeThis article examines the leadership vision, values and vigilance of an emerging markets logistics firm in managing customer and humanitarian concerns and critical supply chains during the COVID-19 pandemic. The study explores how an emerging markets firm has contributed to global supply chain mobility and vaccine distribution in the pandemic – keeping cargo moving – drawing on vision, values and vigilance, including attention to the innovation momentum of the firm.Design/methodology/approachThe article concentrates on an exemplar firm, leader and management team to illustrate challenges of helmsmanship during the pandemic for an emerging markets firm, Agility, that operates worldwide in numerous developed and developing economy markets. The article develops a case study analyzing how Agility has met the simultaneous challenges for innovation and transformation in the digital revolution and navigation through the crisis times of the global pandemic. The analysis derives from direct management communications, corporate documents and media sources.FindingsThe vision, values and vigilance of the leadership, with emphasis on digital innovations and disruptions, digital supply chains, humanitarian partnerships, focusing both globally and on emerging markets, and nurturing smaller as well as larger businesses, have enabled the firm to thrive. Given the importance of global supply chains during COVID-19, Agility is a pivotal example of partnering with governments and pharmaceutical companies worldwide in delivering the new array of vaccines, as well as personal protective equipment and other medical supplies, in the battle against the pandemic. Agility in addition illustrates the strategic value of partnering with other logistics firms in humanitarian collaborations as well as in business strategy transactions.Research limitations/implicationsThe article contributes to the emergent research stream on leadership, innovation and internationalization in the Arabian Gulf Cooperation Council and Middle East North Africa (GCC/MENA) region and more generally on the strengths and proficiencies of emerging market firms and leaders. Future research could examine additional firms, industries or regions of the world during the pandemic or other crisis contexts. Further data sources and analyses can be used in validating and extending the findings.Practical implicationsDigital supply chains, humanitarian partnerships and an emphasis on digital communications, storage and transportation innovations can benefit firms from all regions of the world during the global pandemic and other crises, as well as in normal operations.Social implicationsEmerging markets represent the majority of global population and economic growth, as well as of pandemic cases and mortality risk, signifying the importance of leadership, collaboration and innovation around issues such as vaccine delivery into emerging markets regions of the world.Originality/valueThe article takes a revelatory case perspective in the pandemic crisis context from a unique foundation of immersive field research and data access in the GCC/MENA) region.

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Liability of Emergingness of Emerging Market Multinationals in Developed Markets: A Conceptual Approach

Cited by 8 publications

References 97 publications

How local stakeholder stereotypes impact liability of foreignness and asset of foreignness

How local stakeholder stereotypes impact liability of foreignness and asset of foreignness

Nation branding, cultural identity and political polarization – an exploratory framework

Navigating the digital revolution and crisis times: humanitarian and innovation-inspired leadership through the pandemic

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