Liability of foreignness (LOF) is a well known concept in international business domain. At the core of LOF is the insight that firms face social and economic costs when they operate in foreign markets. Extant literature acknowledges that the ability of firms to overcome LOF in host locations...

This article integrates institutional theory and organizational learning perspective and proposes a contingency framework on the relationship between ownership strategies and subsidiary performance. Using a sample of Japanese subsidiaries worldwide, the article finds important main effects of...

We study antecedents of innovation performance for the subsidiaries of multinational enterprises (MNEs) using the microfoundations approach. Based on the upper echelons perspective, we argue that managers’ demographic characteristics, such as prior MNE work experience and industry experience...

Drawing from the notion of cultural friction and based on the agency theory rationalization of multinational enterprise (MNE) headquarter–subsidiary relationship, we examine the impact of cultural friction in foreign subsidiaries on subsidiary performance. We argue that cultural friction,...

We extend internalization theory by examining the contingencies associated with market internalization and its impact on foreign subsidiary survival. Based on a sample of 6170 subsidiary-year observations in 63 countries belonging to 292 MNCs from Korea during 1995 to 2013, we find that greater...

We adopt and develop an institutional perspective to advance our understanding of how host country environments influence subsidiary staffing strategies. We propose and find that firms rely more on parent company nationals (expatriates) in institutionally distant environments for reasons related...