The impact of country-of-origin on the acceptance of foreign subsidiaries in host countries: An examination of the 'liability-of-foreignness'

Miriam Moeller, Michael Harvey, David Griffith, R. Glenn Richey

Research output: Contribution to journalArticleResearchpeer-review

45 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)89-99
Number of pages11
JournalInternational Business Review
Volume22
Issue number1
DOIs
Publication statusPublished - Feb 2013

Fingerprint

Country of origin
Foreign subsidiaries
Liability of foreignness
Host country
Acceptance
Attribution
Moderator
Managers
Strategic options
Stigma
Intangibles
Vendors
Suppliers
Product image
Caste
Employees
Distributor

Cite this

Moeller, Miriam ; Harvey, Michael ; Griffith, David ; Richey, R. Glenn. / The impact of country-of-origin on the acceptance of foreign subsidiaries in host countries : An examination of the 'liability-of-foreignness'. In: International Business Review. 2013 ; Vol. 22, No. 1. pp. 89-99.
@article{a58922adad374e6c92a10ad06e3ecb9b,
title = "The impact of country-of-origin on the acceptance of foreign subsidiaries in host countries: An examination of the 'liability-of-foreignness'",
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.",
author = "Miriam Moeller and Michael Harvey and David Griffith and Richey, {R. Glenn}",
year = "2013",
month = "2",
doi = "10.1016/j.ibusrev.2012.02.006",
language = "English",
volume = "22",
pages = "89--99",
journal = "Scandinavian International Business Review",
issn = "0969-5931",
publisher = "Elsevier",
number = "1",

}

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; Richey, R. Glenn.

In: International Business Review, Vol. 22, No. 1, 02.2013, p. 89-99.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - The impact of country-of-origin on the acceptance of foreign subsidiaries in host countries

T2 - An examination of the 'liability-of-foreignness'

AU - Moeller, Miriam

AU - Harvey, Michael

AU - Griffith, David

AU - Richey, R. Glenn

PY - 2013/2

Y1 - 2013/2

N2 - 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.

AB - 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.

UR - http://www.scopus.com/inward/record.url?scp=84870241650&partnerID=8YFLogxK

U2 - 10.1016/j.ibusrev.2012.02.006

DO - 10.1016/j.ibusrev.2012.02.006

M3 - Article

VL - 22

SP - 89

EP - 99

JO - Scandinavian International Business Review

JF - Scandinavian International Business Review

SN - 0969-5931

IS - 1

ER -