Overcoming the liability of foreignness

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This study addressed the question of whether firms in a competitive, globally
integrated environment face a “liability of foreignness” and to what extent either importing home-country organizational capabilities or copying the practices of successful local firms can help them overcome this liability. Predictions were tested with a paired sample of 24 foreign exchange trading rooms of major Western and Japanese banks in New York and Tokyo. Results support the existence of a liability of foreignness and the role of a firm's administrative heritage in providing competitive advantage.
Original languageEnglish (US)
Pages (from-to)341-363
Number of pages23
JournalAcademy of Management Journal
Issue number2
StatePublished - 1995


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