The impact of liability of foreignness on performance in hybrid organizations

Tigist Woldetsadik Sommeno, Roy Mersland () and Trond Randøy ()
Additional contact information
Roy Mersland: UIA - University of Agder

Post-Print from HAL

Abstract: This study extends the concept of liability of foreignness from for-profit firms to "hybrid" organizations that combine financial and social goals. By using a global dataset of 655 microfinance institutions (MFIs) observed in 77 countries between 1998 and 2015, we investigate the effect of foreignness on the financial and social performance of MFIs. The results suggest a negative effect of foreignness on the financial and social performance of hybrid organizations. Our results also suggest that the negative financial performance effect of foreignness is stronger in organizations with high social performance and in MFIs hosted in institutionally weaker countries. Furthermore, our results emphasize the moderating influence of scaling and longer tenure of MFIs in their host countries. Interestingly, our findings also shed light on the dual nature of scaling, demonstrating both its positive and negative moderating effects. By applying the concept of liability of foreignness this study enriches the understanding of performance in international hybrid organizations.

Keywords: Liability; of; foreignness; Hybrid; organization; Social; enterprise; Microfinance; Social; performance; Financial; performance (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-eur
Note: View the original document on HAL open archive server: https://hal.science/hal-05221048v1
References: Add references at CitEc
Citations:

Published in Journal of International Management, 2024, 30 (2), pp.101133. ⟨10.1016/j.intman.2024.101133⟩

Downloads: (external link)
https://hal.science/hal-05221048v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05221048

DOI: 10.1016/j.intman.2024.101133

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().