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The Impact of the home country on internationalization

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journal contribution
posted on 2022-10-05, 19:42 authored by A Cuervo-Cazurra, Y Luo, R Ramamurti, Siah AngSiah Ang
We analyze how a firm's home country influences its internationalization. We propose two complementary types of influence. First, we conceptualize a firm's international trade as shaped by four drivers: comparative advantage, comparative disadvantage, country-of-origin advantage, and country-of-origin liability. Second, we conceptualize the firm's foreign direct investment as shaped by four other drivers: institutional learning, competitive learning, institutional escape, and competitive escape. Taken together, these eight drivers help pull together recent theoretical advances on topics such as emerging-market multinationals, investment in tax havens, and cross-border acquisitions of firms in advanced countries. We also highlight other home-country related issues, such as strategic responses and home-host country links, in the spirit of fostering future research on home-country effects that warrant a more nuanced understanding.

History

Preferred citation

Cuervo-Cazurra, A., Luo, Y., Ramamurti, R. & Ang, S. H. (2018). The Impact of the home country on internationalization. Journal of World Business, 53(5), 593-604. https://doi.org/10.1016/j.jwb.2018.06.002

Journal title

Journal of World Business

Volume

53

Issue

5

Publication date

2018-11-01

Pagination

593-604

Publisher

Elsevier BV

Publication status

Published

ISSN

1090-9516

Language

en