Regional economic stress as moderator of liability of foreignness
In this paper we develop optimized localization strategies for multinational firms to overcome their liability of foreignness by adding a regional dimension within a country. We explore conceptually whether economic stress in a region has a mitigating or reinforcing effect. We test this analytical framework empirically on the highly internationalized German car market and find that intra-national regions under economic stress are more promising markets for foreign car manufacturers as the effects of liability of foreignness are significantly lower there.
Year of publication: |
2008
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Authors: | Sofka, Wolfgang ; Zimmermann, Jörg |
Published in: |
Journal of International Management. - Elsevier, ISSN 1075-4253. - Vol. 14.2008, 2, p. 155-172
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Publisher: |
Elsevier |
Keywords: | Liability of foreignness Multinational strategy Automotive market |
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