Transforming the liability of outsidership into assets of outsidership: a comparative study of Japanese automotive subsidiaries in Russia

Abstract

ABSTRACTThis study investigates the mechanisms that transform the liability of outsidership into assets of outsidership. Debates on transforming the liability of foreignness into assets of foreignness have been emerging, but transforming the liability of outsidership into assets of outsidership remains unclear. Drawing on organizational learning perspectives, we provide a comparative study of Japanese automotive subsidiaries in Russia. We suggest that advanced economy multinational enterprises in emerging markets benefit from local networks with a local partner but not from non-experience-based firm-specific advantages. Our study contributes to current debates in the literature by presenting the novel concept of ‘assets of outsidership’ and discussing the mechanisms of this transformation.