TY  - INPR
UR  - https://doi.org/10.1177/01492063221094261
N2  - The literature on the liability of foreignness focuses on explaining why foreign firms operating in a given country underperform relative to their domestic rivals. We provide a complementary perspective that allows for within-firm variation in the liability of foreignness, at the level of a firm's products. Specifically, we explore how consumers? willingness-to-pay for foreign products is affected by a firm's sourcing strategy for product inputs and by heterogeneity in demand characteristics across the markets where the product is sold. We hypothesize that sourcing inputs from a regional product developer as well as cultural diversity in regional consumer markets will have a stronger positive impact on the regional sales performance of products sold by foreign firms than on those by domestic firms. Our hypotheses are supported in a product-level analysis of 2,144 console video games sold in the 11 subnational regions of the United Kingdom over the period 2005?2008. Our findings suggest that firm-level explanations of the liability of foreignness need to be supplemented by a product-level perspective that considers heterogeneity in both supply- and demand-side factors as important determinants of consumers? willingness-to-pay for foreign products.
N1  - This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access page (https://us.sagepub.com/en-us/nam/open-access-at-sage).
AV  - public
JF  - Journal of Management
Y1  - 2022/05/04/
KW  - Liability of foreignness
KW  -  demand heterogeneity
KW  -  product-market strategy
KW  -  regional sourcing
KW  -  cultural diversity
ID  - discovery10146013
PB  - SAGE
TI  - Within-Firm Variation in the Liability of Foreignness: A Demand-Based Perspective
A1  - Benischke, Mirko
A1  - Rietveld, Gerben
A1  - Slangen, Arjen
ER  -