Abstract

Thus far, most of the empirical work on “liabilities of foreignness” has focused on foreign subsidiaries of multinational enterprises relative to domestic firms, while largely ignoring the context of new ventures (Buckley & Casson, 1998; Mezias, 2002; Zaheer & Mosakowski, 1997). In this paper we study the liability of foreignness (LoF) in the context of new ventures. It is our objective in this paper to examine: (1) how liabilities of foreignness affect new ventures; and (2) whether these liabilities similarly affect all new firms regardless of their chosen strategy for foreign market entry.

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