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Type: Journal article
Title: Exploiting the liability of foreignness: why do service firms exploit foreign affiliate networks at home?
Author: Boehe, D.
Citation: Journal of International Management, 2011; 17(1):15-29
Publisher: Elsevier
Issue Date: 2011
ISSN: 1075-4253
Statement of
Dirk Michael Boehe
Abstract: Drawing on both a resource-based view of the firm and an in-depth case study, we develop a novel conceptual model that explains under what conditions a service firm may use its international affiliate network to build a differentiation-based competitive advantage in its domestic market. The bank we studied implemented a differentiation strategy by positioning itself as a "South American Bank" and by offering a set of foreign trade services to its domestic clients that were unique at the time of their introduction. Our conceptual model fills a gap in the literature on difficulties in internationalization by explaining under what conditions internationalizing firms may opt for a strategy that seeks to domestically exploit resources and capabilities that have been developed in the course of internationalization. © 2010 Elsevier Inc.
Keywords: Internationalization of service firms; Multinational banking; Emerging markets; Liability of foreignness; Barriers to expansion
Rights: Copyright © 2010 Elsevier Inc. All rights reserved.
DOI: 10.1016/j.intman.2010.09.011
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