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.
- Institutional theory
ASJC Scopus subject areas
- Business and International Management
- Business, Management and Accounting(all)
- Economics and Econometrics
- Strategy and Management
- Management of Technology and Innovation