Drawing insights from liability of foreignness, the punctuated equilibrium model and the resource-based view, this dissertation develops an integrated model to identify the successful strategies and characteristics of both domestic and foreign firms operating in emerging markets, affected by regulatory punctuations. Accordingly, three research questions are addressed: Why are some foreign firms more likely to survive than other foreign firms? Why are some domestic firms more likely to survive than other domestic firms? Are there any similarities between successful foreign firms and successful domestic firms? Using event-history methodologies and the Mexican banking industry as the unit of analysis, this dissertation shows the following results: Foreign firms (banks) from countries with stronger commercial ties to Mexico (the focal emerging market), were less likely to exit the banking industry. Also, the likelihood of exiting the industry, by a foreign firm, was negatively related to domestic firm (bank) acquisitions. For the domestic firms (banks), there was a positive relationship between international diversification and firm survival and a negative relationship between aggressive (loan) growth and firm survival. Also, marginal support was found about the positive relationship between “grupo” affiliation and firm survival. This research contributes to the extant literature by extending current theories when considering the effect of radical change. For instance, while punctuated equilibrium provides a good “environmental” explanation about a firm’s need to adapt to radical change, it does not suggest how firms should adapt to this change. However, by providing an explanation on how firms suppose to adapt to this radical change, this dissertation had expanded the theoretical implication of the punctuated equilibrium model. Similarly, the present dissertation provides a theoretical extension to liability of foreignness by finding that not all foreign firms face the same liability of foreignness. Lastly, the resource-based view is also extended by this dissertation research, as it is found to have implications for emerging markets firms that are different from foreign developed market firms.

This research was motivated by the desire to understand how regulatory reforms affect the task environment in an emerging market. Regulatory reforms in emerging markets have been used amongst others to correct market failures, increase competition or grow economic sectors. However, on occasion unintended consequences arise from these interventions leading to “liabilities of foreignness” for some of the entities operating in the institutional environment. To this end, this study aimed to establish if these effects were prevalent in the South African mining environment by studying two cases of companies operating in the sector, represented by a foreign and a domestic entity.An exploratory qualitative research design was followed since the researcher was unsure whether the phenomena being observed constituted LOFs or not. A literature study was conducted in order to define the construct of liabilities of foreignness and its impact on the task environment. Therefore the objective of the study was to;Establish the effect of institutional reforms in facilitating the development of LOFs in emerging markets.The research did show the regulatory reforms to alter the business environment somewhat, therefore leading to LOFs in the task environment. However, no entities appeared to be benefiting from the current regulatory reforms, as suggested by the literature. This is possibly due to organisational learning or the efficacy of the individual entities in applying coping strategies to mitigate against LOFs in the institutional context. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

Institutional theory has been used to explain the duality of multinational companies and the need to establish legitimacy both internally- within the organisation and externally- with the external operating environment. The concept of liability of foreignness explains the legitimacy pressures posed by the duality of environments that MNCs are exposed to and the strategic responses taken in this context. However it remains unclear how MNCs respond appropriately to the conundrum, more so in the emerging market context. Using deductive qualitative research grounded on institutional theory, the research study sought to establish which liability of foreignness issues posed the greatest challenge for MNC executives in emerging markets, their response to emergent issues and additionally how they deal with conflicting outcomes, if any from the strategic responses taken. The findings support institutional theory precepts that external institutional pressures pose the greatest challenge for MNCs but conversely the firm’s response to the challenges puts the overall efficiency of the firm at risk. Executives of MNCs focused on emerging markets will find the outcome of the research useful as it identifies key LOF issues and the appropriate strategic response. More importantly it also addresses albeit to a limited extent how to mitigate the conflicting outcomes of such actions. An attempt is also made at establishing an optimal mix of strategic actions. / Dissertation (MBA)--University of Pretoria, 2013. / ccgibs2014 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

Multinational corporations operating in emerging markets have to be able to operate within the institutional context of those markets. Emerging markets institutions are mostly in transition or remain undeveloped and create a variety of institutional voids. International Business scholars have also been grappling with understanding how multinational corporations deal with liability of foreignness in the host environments in which they operate. The research canvassed the views from multinationals operating in South Africa as an emerging market. This study relies on institutional theory to understand how the institutional voids in emerging markets create specific liabilities of foreignness for the multinational corporations. How multinational corporations respond to these liabilities of foreignness is investigated. / Mini Dissertation (MPhil)--University of Pretoria, 2019. / Gordon Institute of Business Science (GIBS) / MPhil (International Business) / Unrestricted

E-handeln är en teknologisk utveckling som har underlättat internationaliseringsprocessen för företag. Likväl existerar alltjämt barriärer som kan försvåra born globals internationaliseringsprocess. Liability of foreignness är ett fenomen som beskriver de extra kostnader som företag kan stöta på vid en internationalisering. Syftet med studien är att undersöka hur risker relaterade till liability of foreignness utspelar sig hos born globals vars internationalisering sker via e-handeln. En kvalitativ forskningsmetod har tillämpats där semistrukturerade intervjuer har genomförts med tre e-handelsföretag. Det empiriska underlaget indikerar att risker kopplade till liability of foreignness har förändrats. Brist på erfarenhet och kunskap om värdlandet framgår inte längre som hinder. Genom nätverk, det mest uppenbara hindret, kan born globals inhämta kunskap om kunder och skapa sig legitimitet på den utländska marknaden. Vidare utgör regleringar fortsatt ett hinder. Företagen efterfrågar därtill fler fysiska interaktioner med intressenter, men inget tyder på att virtuality trap i dagsläget utgör ett hinder.

Bakgrund: I dagens globaliserade samhälle är länder till stor del sammanknutna ochmarknader betraktas snarare som nätverk av relationer än som klassiska marknader därolika aktörer verkar oberoende av varandra. Existerande forskning utgår i hög grad frånantagandet att små och medelstora företag redan har utvecklade affärsnätverk somsträcker sig över hemlandets gränser vid tidpunkten för internationalisering. Emellertidhar empiriska studier visat att många av dessa företag faktiskt saknar internationellanätverk vid företagsetablering utomlands. En situation som kan leda till stora problem närdet kommer till att förstå det nya affärsklimatet, att identifiera internationellaaffärsmöjligheter samt att skapa tillit till nya utländska affärspartners. Syfte: Syftet med denna studie är att skapa förståelse för svenska entreprenörer sometablerar sig på den franska marknaden och franska entreprenörer som etablerar sig påden svenska. Vidare söker uppsatsen att klargöra huruvida förekomsten av ett socialtnätverk kan hjälpa dessa entreprenörer att övervinna problemet med liability offoreignness samt hur sociala nätverk påverkar skapandet av entreprenörersaffärsmöjligheter. Metod: Denna flerfallsstudie genomfördes med en kvalitativ forskningsstrategi och haren abduktiv ansats. Det empiriska materialet omfattar 12 semistrukturerade intervjuer. Slutsats: Studiens resultat visar att sociala nätverk har en inverkan på skapandet avaffärsmöjligheter, framförallt när det kommer till valet av marknad att gå in på samt föratt skapa förståelse för den nya kulturen. Vidare drar entreprenörer stor nytta avkundernas sociala nätverk. Därtill visar resultaten att inte alla internationellaentreprenörer upplever liability of foreignness. Det finns istället indikationer på någotstudiens författare kallar “possibility of foreignness”. / Background: In today's globalized world, countries are largely interconnected, andmarkets are considered as networks of relationships rather than as classic markets wheredifferent actors operate independently of one another. Existing research is largely basedon the assumption that SMEs have business networks that extend beyond the borders oftheir home country at the time of internationalization. However, empirical studies haveshown that many companies actually lack international networks when setting upcompanies abroad. A situation that can lead to major problems when it comes tounderstanding the new business climate, identifying international business opportunitiesand building trust in new foreign business partners. Purpose: The purpose of this study is to create an understanding for Swedishentrepreneurs who start a business on the French market and French entrepreneurs whostart a business on the Swedish market. Furthermore, the thesis seeks to clarify whetherthe existence of social networks can help these entrepreneurs overcome the problem ofliability of foreignness and how social networks affect the creation of entrepreneurs'business opportunities. Method: This multiple case study was conducted with a qualitative research strategy andan abductive approach. The empirical data comprises 12 semi-structured interviews. Conclusion: The results of the study show that social networking indeed has an impacton the creation of business opportunities, especially when it comes to choosing whichmarket to enter and to help understanding the new culture. Furthermore, entrepreneursbenefit greatly from customers' social networks. However, the study shows that not allinternational entrepreneurs experience liability of foreignness. Instead, there areindications of something the authors call “possibility of foreignness”.

The internationalization process is a well-researched and explored topic. However, many older models do not consider digitization as a phenomenon. Nor is any further consideration given to the smaller companies. The aim of this study is to investigate how small businesses feel that they are affected by digitalization during an internationalization process. In order to find an answer to this, a qualitative study has been done where a total of three people have been interviewed from three different companies. Based on these interviews, an analysis has been made which has then been analyzed in the context of the theoretical background. Theories used in the study to be able to fulfill the aim includes theories about Mental distance, Liability of Foreignness, Liability of Outsidership and other theories about growth, internationalization and digitalization. The conclusion drawn is that digitalization has simplified the internationalization process, mainly through progress in how knowledge can be collected and shared over greater distances. Digitalization has facilitated contact with the contact network through simpler and alternative contact channels. / Internationaliseringsprocessen är ett välundersökt och utforskat ämne. Många äldre modeller beaktar dock inte digitaliseringen som fenomen. Man tar inte heller någon vidare hänsyn till de mindre bolagen. Syftet med denna studie är att undersöka hur småföretag upplever att de påverkas av digitalisering under en internationaliseringsprocess. För att kunna besvara detta har en kvalitativ studie gjorts där totalt tre personer har intervjuats från tre olika företag. Utifrån dessa intervjuer har analyser gjorts som sedan har analyserats i kontexten av den teoretiska bakgrunden. Teorier som använts i studien för att kunna uppfylla syftet är bland annat teorier om Psykiskt avstånd, Liability of Foreignness, Liability of Outsidership samt andra teorier kring tillväxt, internationalisering och digitalisering.  Slutsatsen som dras är att digitaliseringen har förenklat internationaliseringsprocessen främst genom framsteg i hur kunskap kan insamlas men även delas över större avstånd. Digitaliseringen har underlättat kontakten med kontaktnätet genom enklare och alternativa kontaktkanaler.

This study seeks to understand the scope and types of public relations practices in Japan, how public relations practices of Japanese and foreign companies differ, how media respond differently to the public relations activities of Japanese and foreign companies, and how "foreignness" affects public relations activities of multinational enterprises in Japan. The sole academic journal in the field of public relations in Japan and the single commercially published public relations industry magazine were submitted to an empirical content analysis. Additionally, three cases of contest for corporate control, two of which were between an American activist fund and a Japanese company, and one between a Japanese investment fund and a Japanese company, were analyzed using a case study approach. Press releases and newspaper articles about these cases were also content analyzed. The results show that among public relations activities, crisis category appeared the most frequently in the public relations industry journal and corporate communication category appeared the most frequently in the public relations academic journal. The analysis of the cases shows that the American fund at first faced problems communicating with its stakeholders but improved its communication activities in subsequent years with better results. The content analysis of the press releases shows that American fund uses more quotes and persuasive messages in the press releases and Japanese newspapers do not treat domestic and foreign entities differently. The overall results confirm the importance of culture in public relations practices.

Helt digitala bolag antas många gånger inte möta samma typer av barriärer som de som producerar fysiska produkter eller är delvis digitala. Det finns mycket forskning inom internationalisering och barriärer, men sällan med avseende på born digitals, digitala företag med hög digitaliseringsgrad som internationaliserar sig tidigt. Studiens syfte är att undersöka vilka barriärer, i form av liability of foreignness och liability of newness, som born digitals möter vid internationalisering. I en fallstudie har intervjuer med VD och anställda vid marknadsföringsbyrån Nordic Business House utförts. Företaget agerar brygga mellan Sverige och Kina. Bland resultaten har barriärer noterats i form av kulturella skillnader, regleringar kring media och pengar, avsaknad av legitimitet och svårigheter med att anställa medarbetare med relevant kompetens. Slutsatsen är att samtliga barriärer även kan appliceras på born globals, men de påverkar i olika grad. För att finna born digital-specifika barriärer behöver andra born digitals-företag och barriärer vidare undersökas.

Purpose: The purpose of this thesis is to research the factors influencing the purchase intention of Airbnb in China from the perspective of liability of foreignness. Methodology: This thesis adopts a quantitative approach through a questionnairebased survey among Chinese people. Based on a PLS-SEM analysis of the data from 241 online questionnaires, this thesis teststhe effects of perceived risk, perceived higher price, lesser availability of listings, as well as lesser availability of advertising on consumers’ purchase intention towards Airbnb in China. Findings: The results illustrate that both perceived higher price and lesser availability of listings would reduce Chinese purchase intention towards Airbnb in China, whereas perceived risk and lesser availability of advertising do not significantly influence Chinese purchase intention towards Airbnb in China. Research implications: The study contributes to the literature on sharing economy and customer behavior by providing a new framework from the perspective of liability of foreignness in order to understand more completely the deterrents of the Chinese consumer’s purchase of Airbnb-related products and services in China. Specifically, this thesis invokes a relatively under-explored theoretical view (i.e., the liability of foreignness) in the research on the internationalisation of sharing economy, which enables us to enrich the research on sharing economy and international customer behaviors. This study also enhances the understanding of the barriers of international marketing of sharing economy and advances the research on the internationalisation of sharing economy by evaluating the four relevant factors (i.e., perceived risk, perceived higher price, lesser availability of listings, and lesser availability of advertising) in the host country. Practical implications: Our findings entail several practical implications for managers of Airbnb in conquering the Chinese market. For example, given that perceived higher price and lesser availability of listings appears to be the critical barriers of consumer intentions, we recommend that Airbnb China employ strategies to increase the availability of listings, and devise relatively lower pricing strategies to attract Chinese consumers.