The impact of country-of-origin on the acceptance of foreign subsidiaries in host countries: an examination of the ‘liability-of-foreignness’

Moeller, Miriam, Harvey, Michael, Griffith, David and Richey, Glenn (2013) The impact of country-of-origin on the acceptance of foreign subsidiaries in host countries: an examination of the ‘liability-of-foreignness’. International Business Review, 22 1: 89-99. doi:10.1016/j.ibusrev.2012.02.006


Author Moeller, Miriam
Harvey, Michael
Griffith, David
Richey, Glenn
Title The impact of country-of-origin on the acceptance of foreign subsidiaries in host countries: an examination of the ‘liability-of-foreignness’
Journal name International Business Review   Check publisher's open access policy
ISSN 0969-5931
1873-6149
Publication date 2013-02
Year available 2012
Sub-type Article (original research)
DOI 10.1016/j.ibusrev.2012.02.006
Volume 22
Issue 1
Start page 89
End page 99
Total pages 11
Place of publication Kidlington, United Kingdom
Publisher Pergamon
Collection year 2013
Language eng
Abstract This paper examines the relationship between an organization's country-of-origin and the acceptance into a host country environment by constituents such as vendors, suppliers, and distributors. This study contributes to the literature by proposing the examination and ultimate measurement of various tangible and intangible sources of the ‘liabilities of foreignness’. Additionally we show that are these sources are internal and external moderators of perceived acceptance in the host country. Manager must recognize the country-of-origin strategic options to address the negative overshadowing of the liability-of foreignness. We conclude that not doing so can create a stigma that may be attached to the overall organization, its image, products, brands, and to its employees. Further, negative attribution may be caste upon all the identifying characteristics of the foreign entity. The management of the firm must note the potential resistance to accept the organization and its products/services and must develop a proactive set of strategies to address the negativism of the host country constituents.
Keyword Country-of-origin
Inpatriate managers
Liability-of-foreignness
Stakeholder Theory
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Available online 26 April 2012

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2013 Collection
UQ Business School Publications
 
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Created: Wed, 20 Feb 2013, 16:14:08 EST by Karen Morgan on behalf of UQ Business School