Exploiting the liability of foreignness: Why do service firms exploit foreign affiliate networks at home?

Dirk Michael Boehe

Journal of International Management, 2011, vol. 17, issue 1, 15-29

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.

Keywords: Internationalization; of; service; firms; Multinational; banking; Emerging; markets; Liability; of; foreignness; Barriers; to; expansion (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (11)

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