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Reconciling the advantages and liabilities of foreignness: Towards an identity-based framework

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Abstract

This article leverages identity theory to address the question of when and how foreignness acts as an advantage and liability for the MNE subsidiary. Applying an organizational identity lens, I delineate how subsidiaries manage their foreignness by accentuating and attenuating internal and external organizational attributes. Drawing on this conceptualization, I theorize how an accentuated foreign identity moderates context-specific advantages and liabilities. In offering a more nuanced understanding of how subsidiaries actively manage their foreignness, and its contextual implications, an identity-based framework helps to both explain and reconcile the advantages and liabilities of foreignness.

Abstract

Cet article s’appuie sur la théorie de l’identité pour adresser la question du quand et du comment l’extranéité agit comme un avantage et un inconvénient pour la filiale de la FMN. En appliquant la perspective de l’identité organisationnelle, je décris comment les filiales gèrent l’extranéité en accentuant et en atténuant les attributs organisationnels internes et externes. Utilisant cette conceptualisation, je théorise comment une identité étrangère accentuée modère les avantages et les inconvénients spécifiques au contexte. En offrant une compréhension plus nuancée sur la manière dont les filiales gèrent leur extranéité et ses implications contextuelles, un cadre conceptuel fondé sur l’identité aide à la fois à expliquer et à réconcilier les avantages et les inconvénients de l’extranéité.

Abstract

Este artículo apaláncala la teoría de identidad para abordar la pregunta de cuándo y cómo la extranjería actúa como una ventaja y desventaja para la subsidiaria de la empresa multinacional. Aplicando los lentes de identidad organizacional, esquematizo como las subsidiarias gestionan su extranjería a través de acentuar y atenuar los atributos organizacionales internos y externos. Con base en esta conceptualización, teorizo cómo una acentuada identidad extranjera modera las ventajas y las desventajas específicas para cada contexto. Ofreciendo una comprensión con más matices de cómo las subsidiarias activamente manejan su extranjería, y sus implicaciones contextuales, un marco basado en identidad ayuda tanto a explicar como a reconciliar las ventajas y las desventajas de la extranjería.

Abstract

Este artigo utiliza a teoria da identidade para abordar a questão de quando e como ser estrangeiro atua como uma vantagem e um ônus para a subsidiária de MNE. Aplicando uma lente de identidade organizacional, eu delineio como subsidiárias administram o fato de ser estrangeiro ao acentuar e atenuar atributos organizacionais internos e externos. Com base nesta concepção, eu teorizo como uma identidade estrangeira acentuada modera vantagens e desvantagens específicas do contexto. Ao oferecer uma compreensão mais matizada de como subsidiárias ativamente administram o fato de ser estrangeiro e suas implicações contextuais, uma estrutura baseada na identidade ajuda tanto a explicar quanto reconciliar as vantagens e ônus de ser estrangeiro.

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Acknowledgements

I am very grateful for insightful comments and helpful suggestions from Guest Editor Guenter Stahl, as well as the three anonymous reviewers, throughout the revision process. I would also like to thank Joel Malen and Kangyong Sun for supportive advice, as well as participants at the Douglas Nigh Award session at the 2015 Academy of Management for helpful ideas and comments.

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  1. Hitosubashi University, Tokyo, Japan

    Jesper Edman

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Correspondence to Jesper Edman.

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Accepted by Guenter Stahl, Guest Editor, 14 April 2016. This article has been with the author for three revisions.

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Edman, J. Reconciling the advantages and liabilities of foreignness: Towards an identity-based framework. J Int Bus Stud 47, 674–694 (2016). https://doi.org/10.1057/jibs.2016.29

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