Liability of Foreignness of Emerging Market Firms: The Country of Origin Effect on Russian IT Companies

Foreign subsidiaries are considered to be at a disadvantage compared to domestic firms in foreign markets. The liability of foreignness (LOF) concept was first attempted in order to address the issue of these disadvantages. Although internationalization of emerging market firms (EMFs) is a very hot topic, there is very little research of LOF of EMFs. In this article, we investigate the sources of LOF and determine the extent of the country-of-origin (COO) effect on Russian IT firms. We also discuss how Russian firms may overcome the LOF, and we propose the mitigation strategies that will help them to decrease negative COO effect.     

Country‐of‐Origin and Social Resistance in Host Countries: The Case of a Chinese Firm

While China's outward direct investments continue to soar, many Chinese firms reportedly face social resistance in host countries during the internationalization process. We explore this phenomenon from a country‐of‐origin (COO) perspective using Fiske and colleagues’ (Fiske, Cuddy, Glick, & Xu, 2002; Fiske, Xu, Cuddy, & Glick, 1999) stereotype content model. Our findings from a recent case in New Zealand show that China's COO emerges as a key variable influencing how local actors view Chinese investors. Specifically, despite China's significant economic and social developments over the past decades, it suffers from a somewhat negative country image in two stereotype dimensions: competence and warmth. This leads to a perception by local actors that Chinese firms are of low quality, which explains the source of resistance in society. To address such a liability of origin, Chinese firms must learn to deal with this form of stereotypical judgment encountered in a host environment. Further contributions and limitations of the study are discussed in the article. © 2016 Wiley Periodicals, Inc.     

An Empirical Study of the Determinants of Foreign Investment in China: A Western Australian Perspective

The literature, regarding the determinants of inward foreign direct investment (FDI) in China, emphasizes national or regional inward FDI, and largely depends on secondary data. This study reports findings from the analysis of primary data provided by 43 managers of Western Australian companies that are either operating or planning to invest in China reveals market size, labor cost, and business ethics were important factors for promoting foreign investment to the Chinese marketplace; while gender, organizational size, and networking have potential to play a significant mediating role in investment decisions. These exploratory observations are a departure point for further investigations.     

空间相关与外商直接投资区位决定——基于中国城市数据的空间计量分析

以2006年中国大陆244个地级及以上城市为样本,利用空间计量经济学方法对外商直接投资的区位决定进行实证研究。对全国城市分析的结果发现:除了劳动力素质、市场规模、基础设施以及集聚经济以外,空间相关性也是影响FDI区位分布的重要因素;一个城市吸引的FDI不仅取决于自身的区位条件,还与周边城市的FDI正相关;劳动力成本在区位决定中的影响不显著。进一步分地区的分析发现,FDI在东、中、西部城市的区位选择具有明显的差异。     

宁波的外商直接投资研究

外商直接投资(FDI)是经济全球化的“推动器”,它在宁波的经济发展历程中起了不可磨灭的作用,但是它在给经济建设带来积极影响的同时也必然会存在一些问题。通过对宁波自改革开放以来的外商直接投资进行的数据统计分析,了解其现状,探讨其对宁波经济发展所起的影响,剖析其存在的问题,并对宁波日后如何提高利用外资的质量和水平、促进产业结构的优化升级和经济的可持续发展进行了一些思考和提出一些建议。     

Liability of Foreignness and the Constitutive Legitimation of Foreign Firms in a Host Country

We examine population density effects on foreign firms’ likelihood to exit from a host country. The lack of constitutive legitimacy is an important aspect of the liability of foreignness experienced by foreign firms. Both foreign firms from a focal firm’s home country and foreign firms from other countries can provide constitutive legitimation for the focal firm. These intrapopulation and interpopulation legitimation effects strengthen with a greater psychic distance between the home and host countries; they also interact with and strengthen each other. Results based on a dataset containing 68,723 firm-year observations on 29,843 foreign firms in China support our predictions.     

Potential FDI causing large distortions in domestic production

When a foreign firm enters a domestic market, either via exports or through foreign direct investment (FDI), one factor determining the most favourable entrance mode is the profitability of the market, which may not be directly observed by the foreign firm. If the domestic trade protection policy is within a certain range that causes the foreign entrant's decision to swing between the two entry modes, the final choice will depend on the foreign firm's belief about the profitability. In such a situation, a domestic incumbent firm wishing to prevent FDI will heavily distort its production downward to convince the foreign competitor that the market is not profitable. When making trade policy, such strategic behaviour on the part of the domestic firm should be taken into account.     

对外直接投资与美国服务贸易的发展

一般认为,对外直接投资活动(FDI)对贸易的持续增长将起到十分重要的支撑和推动作用。本文选用了美国1970年至2003年的相关数据,通过建立自回归模型,拟合后发现这个结论在美国的服务业领域也成立。进一步运用Granger因果检验方法,发现两者之间还存在着互为因果的关系。然而,通过对统计数据的分析,同时也直观地发现,在美国服务业内的对外直接投资与对外贸易在进出口上的同向相关性并不明显。其原因可能是各国对服务业的限制措施所造成的扭曲和直接投资的贸易替代效应所致。     

国际贸易与FDI:基于提高国民福利水平的比较

国际贸易与对外直接投资是参与国际经济交流与合作的方式,二者都会影响参与国社会福利水平的改变。通过构建两个相同市场容量的完全垄断市场下的古诺模型,对国际贸易与FD I提高国民的社会福利水平的效率问题进行比较,认为国际贸易较FD I对提高国民社会福利水平更有效。     

东道国引资政策与跨国企业行为研究

基于东道国引资政策对跨国企业行为的影响,研究建立一个由跨国企业与东道国企业构成的寡头垄断竞争模型,分析跨国企业的选择行为及东道国的最佳优惠政策,结论表明东道国最佳优惠政策与跨国企业直接投资的固定成本密切相关。因此,东道国制定引资政策时应以本国国民福利为首要目标,针对不同类型的FDI给予不同的优惠政策。     

基于合理性理论视角的来源国效应研究

文章基于制度理论中的合理性理论视角,对来源国效应进行了剖析,认为来源国效应本质上是通过合理性感知这一中介机制来发挥其对消费者态度和行为的影响的。消费者会分别基于来源国的绩效和制度形象形成对实用合理性和社会合理性两种判断,进而决定采取何种态度或行为。因此,企业可以通过绩效行为和制度行为来发展提升其来源国合理性的策略。     

金融业外商直接投资对发展中东道国金融体系效率的作用机理分析

外资金融机构本身的高效率运作及其对内资金融机构的竞争与技术溢出是改善东道国金融体系效率的主要传导路径。外资金融机构具有较高的经营效率,有利于促进当地金融市场的发育,而金融业外商直接投资带来的竞争和技术溢出更有利于促进当地金融体系效率的提升。外商直接投资尽管对东道国金融体系效率存在诸多积极效应,但消极影响也不容忽视。     

Foreign subsidiaries' status: Distinctive determinants and implications for subsidiary performance

The purpose of this article is to develop a theoretical framework for understanding what determines foreign subsidiaries' status, and how status affects their performance. The basic argument is that foreign subsidiaries have several unique characteristics that distinguish them from local firms in terms of the factors determining organizational status and the implications status has for subsidiaries' performance. This conceptual article first reviews the three existing determinants of organizational status as theorized by existing status research and makes the case for an extension of the three determinants to account for the special situation of foreign subsidiaries. Having examined the determinants of subsidiary status, this study explores the effect of organizational status on firm performance, and finds that it reduces the liability of foreignness (LoF) that foreign subsidiaries encounter. The study contributes to multiple research streams, including organizational status, LoF, country of origin (CoO), and the international business literature in general. Practically, this study highlights the importance of obtaining high organizational status and provides valuable suggestions for multinational managers in general and subsidiary managers in particular.     

广东省外商直接投资与省内固定资产投资相关性的实证分析——挤出还是挤入效应

本文以新古典投资理论为基础,利用广东省1979-2004年的数据,并结合经济运行的实际情况,对外商直接投资对广东省内投资的挤入挤出效应进行了实证分析,结果表明:广东省的外商直接投资对广东省的省内投资产生了挤出效应。在实证分析的基础上,对产生挤出效应的原因做了进一步的分析。     

跨国公司股权安排选择与绩效关系研究--以世界500强在粤子公司为例

本文在回顾前人对跨国公司股权安排选择与绩效关系的理论和实证研究的基础上 ,对世界 5 0 0强在粤股权安排选择与绩效关系进行了实证分析 ,结果显示二者之间并无显著的相关关系 ,说明跨国公司独资化倾向并非为了改进绩效 ,研究结果可为进一步分析跨国公司在华增资扩股的动因提供借鉴和参考。     

The Role of Location as a Selection Criterion in FDI: The Case of SMEs in Greece

The study examines the internationalization of Greek SMEs in Western Europe and the Balkan area, focusing on the role of location as a selection criterion in their FDI decisions. Data aimed at capturing SMEs’ perceptions with regard to incentives affecting their FDI based on location criteria. We find that location plays a significant role with regard to the benefits that firms gain, highlighting OLI paradigm's theoretical relevance in the examination of FDI, while presenting internationalization trends in the global environment. Findings further contribute to the adaption of effective practices to enhance firms’ competitiveness through more rational and targeted investment decisions.     

The effect of inward FDI on outward FDI over time in China: A contingent and dynamic perspective

Drawing on the investment development path (IDP) framework and foreign direct investment (FDI) spillover literature, this study attempts to identify the contingent and dynamic effect of inward FDI (IFDI) on outward FDI (OFDI) at a provincial level. Using panel data from China, our findings reveal that the positive effect of IFDI on OFDI is stronger in provinces with high economic development, albeit at a diminishing rate over time. However, the level of corruption weakens the effect of IFDI on OFDI over time. Despite that, we find that the effect of IFDI on OFDI is not contingent on trade openness overall. By decomposing trade openness into two dimensions, that is, import intensity and export intensity, our findings indicate that the effect of IFDI on OFDI depends on export intensity, rather than import intensity. Our study provides insights into the complex effect of IFDI on OFDI from a contingent and dynamic perspective.     

The Role of Country of Origin in Celebrity Endorsements: Integrating Effects of Brand Familiarity

ABSTRACT

With the advent of globalization and open economies in the developing nations, the consumers in the same are experiencing entry of more and more foreign products. The traditional practice of having country of origin (COO) cues to influence consumer attitudes is being juxtaposed with COO cues of celebrity endorsers to influence consumers. In that context, the present study investigates whether (a) a global celebrity would be more applicable for a brand regardless of its COO (local or global); (b) a global celebrity would have a more favorable impact on the consumer attitudes for a third country (TC) brand; and (c) brand familiarity would moderate the effects of celebrity endorsements on consumer attitudes. Based on a detailed literature review, four hypotheses were developed and tested through two experimental designs using nonstudent participants. The independent variables used in study were celebrity endorser COO and brand COO. Major findings indicate a celebrity–brand COO match to create favorable impact on consumer attitudes. Findings also supported the effectiveness of a global celebrity for a brand that does not share the same COO. Brand familiarity was found to moderate the effect of the endorser on consumer attitudes. The study has implications for academia and practitioners.     

Weakening the Effect of Unfavorable Country of Origin: A Process- and Parameter-Associated Theoretical Framework

ABSTRACT

The consequence of strategic decisions of Western brands to source their products from offshore countries, largely from the Far East, has added a lot of unfavorable origin countries to their products' labels. Thus, scholars and marketing practitioners are becoming aware of the negative downstream consequences of unfavorable countries of origin in consumers' product evaluation. This research work suggests that, depending on the parameters (cues) that consumers consider along with the country of origin cue, their product evaluation can follow either cognitive, affective, or normative processing. This research study offers a unique framework associated with process-specific parameters that are manifested in weakening the effect of unfavorable country of origin in previous research.     

行业内不对称地位的外资企业与内资企业的动态博弈及启示

外商直接投资企业在我国一些行业内处于强势地位,这对内资企业提出了严峻的挑战。本文从行业的层面将处于强弱不对称地位的外商直接投资企业与内资企业放在一个相互作用的系统中,采用动态博弈的方法定量研究在我国一些行业的外资企业与内资企业所处地位的不对称性对双方得益的影响,并由此得出结论与启示。