Resource title

Coping with Liability of Foreignness - Different Learning Paths

Resource image

image for OpenScout resource :: Coping with Liability of Foreignness - Different Learning Paths

Resource description

Much has been written about how international firms create and sustain firm-specific advantages that offset their liability of foreignness. Less attention has been devoted the question of how international firms can reduce their liability of foreignness. Looking for different paths of learning our study explores the dynamics of firms’ liability of foreignness. A sample of 494 international firms from Sweden, Denmark and New Zealand is clustered along three structural dimensions of liability of foreignness: (1) perceived lack of knowledge about the foreign market, (2) the longevity of operations in the foreign market, and (3) international experience of the entrant firm. The four clusters that precipitate represent different learning path positions. One group of firms can be identified as pre-entry learners, another group as post-entry learners. A minor group of firms is characterized by perceiving a persistent lack of knowledge about the foreign market they are operating in. One might speculate if these firms engage in any learning about the foreign business environment. Furthermore, the data suggest that firms with extensive international experience are more capable in familiarizing with the foreign business environment than are firms with little international experience.

Resource author

Bent Petersen, Torben Pedersen

Resource publisher

Resource publish date

Resource language


Resource content type


Resource resource URL

Resource license

Check the according license before adaptation. When adapting give credits to the original author.