Abstract
The liability of foreignness has long been acknowledged as a key concept in international business research. Departing from the cost side of foreignness, this chapter explores intangible benefits of foreignness exclusive to multinational enterprises in a host country in addition to tangible benefits such as preferential tax policies. Intangible benefits of foreignness are defined as advantages of foreignness so as to distinguish from assets of foreignness - tangible benefits of foreignness. Drawing on institutional theory and social comparison theory, we propose that advantages of foreignness can lead to important firm-specific performance- related outcomes, which have been generally underestimated in the international business literature.
| Original language | English (US) |
|---|---|
| Title of host publication | Institutional Theory in International Business and Management |
| Editors | Laszlo Tihanyi, Timothy Devinney, Torben Pedersen |
| Pages | 99-125 |
| Number of pages | 27 |
| DOIs | |
| State | Published - Dec 1 2012 |
| Externally published | Yes |
Publication series
| Name | Advances in International Management |
|---|---|
| Volume | 25 |
| ISSN (Print) | 1571-5027 |
ASJC Scopus subject areas
- Business and International Management
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Cite this
Shi, W., & Hoskisson, R. E. (2012). Advantages of foreignness: Benefits of creative institutional deviance. In L. Tihanyi, T. Devinney, & T. Pedersen (Eds.), Institutional Theory in International Business and Management (pp. 99-125). (Advances in International Management; Vol. 25). https://doi.org/10.1108/S1571-5027(2012)0000025012