The liability of foreignness reconsidered: New insights from the alternative research context of transforming economies

Environmental risks, localization and the overseas subsidiary performance of MNEs from an emerging economy

“…Another stream of research on MNEs' foreign operations has recognized the importance of localization in subsidiaries' operations and has found that there is a positive relationship between localization and firm performance (Law, Song, Wong & Chen, 2009;Lam & Yeung, 2010;Selmer, 2004;Yildiz & Fey, 2012). However, most studies have mainly focused on staff localization and the extent to which expatriate managers are replaced by local employees (Gaur, Delios & Singh, 2007;Fryxell, Butler & Choi, 2004;Law, Wong & Wang, 2004).…”

“…Environmental risks, either political risks or industry risks, curb MNEs' willingness to increase their dependence on local suppliers (Yildiz & Fey, 2012).…”

“…As risks increase in host countries, heavy reliance on local resources may result in uncertainties and pose significant challenges and costs on MNE subsidiaries. Therefore, MNEs may respond to environmental risks by altering input localization and reducing their exposure and reliance on local resources, and search for alternative ways of obtaining scarce resources (Kostova, Roth & Dacin, 2008;Pfeffer & Salancik, 1978;Yildiz & Fey, 2012). Luo (2003) adds that subsidiaries can ease their dependence on local suppliers by increasingly drawing resources from an MNE's multi-unit system, thereby reducing unpredictable risks associated with acquiring resources locally.…”

Expanding to outward foreign direct investment or not? A multi-dimensional analysis of entry mode transformation of Chinese private exporting firms

“…It is relatively easier to achieve local acceptance through OFDI than exporting given the physical presence of OFDI in the host country markets (Yildiz & Fey, 2012). There is increasing evidence to suggest that Chinese firms are investing abroad to develop new markets and raise brand awareness.…”

Expatriates, subsidiary autonomy and the overseas subsidiary performance of MNEs from an emerging economy

“…The findings from existing studies have enhanced our understanding of the importance of expatriates in MNEs' overseas operations. However, these studies have paid little attention to the impact of expatriates on subsidiary autonomy (Aharoni, Tihanyi, & Connelly, 2011) and how EEMNEs respond to external uncertainty by adjusting their internal management strategies (Davis & Cobb, 2010), such as the levels of localisation (Liu, et al, 2016;Lu, et al, 2014;Yildiz & Fey, 2012) and parental support (Feinberg & Gupta, 2009;Luo, 2003). The resource dependence theory (RDT) has been increasingly influential as a theoretical basis for international business research.…”