Advantages of foreignness: Benefits of creative institutional deviance

Wei Shi, Robert E. Hoskisson

Research output: Chapter in Book/Report/Conference proceedingChapter

14 Scopus citations

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 languageEnglish (US)
Title of host publicationInstitutional Theory in International Business and Management
EditorsLaszlo Tihanyi, Timothy Devinney, Torben Pedersen
Pages99-125
Number of pages27
DOIs
StatePublished - Dec 1 2012

Publication series

NameAdvances in International Management
Volume25
ISSN (Print)1571-5027

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ASJC Scopus subject areas

  • Business and International Management

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