Abstract
The impact of foreignness on cross-border direct investment remains unclear and disputed. Therefore, this research investigates whether foreignness is a liability for emerging MNEs venturing into developed nations and how firm-specific resources may impact the process. The paper interviewed top management at Chinese firms investing in the USA through semi-structured questions to assess these factors. The results suggest that while Chinese firms in the US face deficiencies in human and relational resources and that liabilities of foreignness exist at some level, time and managerial tactics moderate the impact. This study moves beyond empirical and conceptual studies to provide a rare glimpse into the firm level perceptions on liability of foreignness (LOF) and firm-specific advantages for Chinese firms within the USA.
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