Abstract
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.
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 language | English (US) |
|---|---|
| Pages (from-to) | 341-363 |
| Number of pages | 23 |
| Journal | Academy of Management Journal |
| Volume | 38 |
| Issue number | 2 |
| State | Published - 1995 |