Impact of the home country on internationalization

Alvaro Cuervo-Cazurra, Yadong Luo, Ravi Ramamurti, Siah Hwee Ang

Research output: Contribution to journalArticlepeer-review

42 Scopus citations

Abstract

We analyze how a firm's home country influences its internationalization. We propose two complementary types of influence. First, we conceptualize a firm's international trade as shaped by four drivers: comparative advantage, comparative disadvantage, country-of-origin advantage, and country-of-origin liability. Second, we conceptualize the firm's foreign direct investment as shaped by four other drivers: institutional learning, competitive learning, institutional escape, and competitive escape. Taken together, these eight drivers help pull together recent theoretical advances on topics such as emerging-market multinationals, investment in tax havens, and cross-border acquisitions of firms in advanced countries. We also highlight other home-country related issues, such as strategic responses and home-host country links, in the spirit of fostering future research on home-country effects that warrant a more nuanced understanding.

Original languageEnglish (US)
JournalJournal of World Business
DOIs
StateAccepted/In press - Jan 1 2018

Keywords

  • Emerging markets
  • Home country
  • Institutions
  • Internationalization
  • Multinational enterprise

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Marketing

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