Title: Is foreignness a liability for Chinese MNEs in the USA?

Authors: Beth Zuech Schneider

Addresses: McColl School of Business, Queens University of Charlotte, Dana 210B, Charlotte, North Carolina, 28274, USA

Abstract: The impact of foreignness on cross-border direct investment remains unclear and disputed. Therefore, this research investigates whether foreignness is a liability for emerging MNEs venturing into developed nations and how firm-specific resources may impact the process. The paper interviewed top management at Chinese firms investing in the USA through semi-structured questions to assess these factors. The results suggest that while Chinese firms in the US face deficiencies in human and relational resources and that liabilities of foreignness exist at some level, time and managerial tactics moderate the impact. This study moves beyond empirical and conceptual studies to provide a rare glimpse into the firm level perceptions on liability of foreignness (LOF) and firm-specific advantages for Chinese firms within the USA.

Keywords: LOF; liability of foreignness; FDI; foreign direct investment; emerging market multinationals; firm-specific advantages; Chinese multinationals.

DOI: 10.1504/JGBA.2019.103317

Journal for Global Business Advancement, 2019 Vol.12 No.4, pp.476 - 496

Received: 16 Oct 2018
Accepted: 23 Aug 2019
Published online: 26 Oct 2019 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article