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Toward a construct of liability of origin

Author

Listed:
  • Joseph Amankwah-Amoah
  • Yaw A. Debrah

Abstract

In this article, we advance a novel concept of liability of origin to explicate the mechanisms through which location can be become either a liability or an advantage. Our analysis sheds light on how firms’ ability to compete and gain legitimacy can be derailed or enhanced by their geographical location. We illustrate our theoretical analysis using multiple cases in the airline industry in Africa. Four distinct phases that explicate how liability of origin manifests in firms’ legitimacy quest are indicated. Our work highlights how actions and inactions of rival firms can make the geographical origin of a firm “geographicalness” to shift from being a strategic asset to become a liability. We outline a number of implications for practice and fruitful avenues for future research.

Suggested Citation

  • Joseph Amankwah-Amoah & Yaw A. Debrah, 2017. "Toward a construct of liability of origin," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(2), pages 211-231.
    • Handle: RePEc:oup:indcch:v:26:y:2017:i:2:p:211-231.
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    File URL: http://hdl.handle.net/10.1093/icc/dtw021
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    Citations

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    Cited by:

    1. Donbesuur, Francis & Boso, Nathaniel & Hultman, Magnus, 2020. "The effect of entrepreneurial orientation on new venture performance: Contingency roles of entrepreneurial actions," Journal of Business Research, Elsevier, vol. 118(C), pages 150-161.
    2. Asongu, Simplice A. & Amankwah-Amoah, Joseph, 2018. "Mitigating capital flight through military expenditure: Insight from 37 African countries," Research in International Business and Finance, Elsevier, vol. 45(C), pages 38-53.
    3. Ko, Guihan & Amankwah-Amoah, Joseph & Appiah, Gloria & Larimo, Jorma, 2022. "Non-market strategies and building digital trust in sharing economy platforms," Journal of International Management, Elsevier, vol. 28(1).
    4. Afrifa, Godfred Adjapong & Amankwah-Amoah, Joseph & Yamoah, Fred & Acquaye, Adolf & Syllias, Johnny & Quaye, Enoch Nii Boi, 2022. "Regional development, innovation systems and service companies’ performance," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    5. Nyame-Asiamah, Frank & Amoako, Isaac Oduro & Amankwah-Amoah, Joseph & Debrah, Yaw A., 2020. "Diaspora entrepreneurs’ push and pull institutional factors for investing in Africa: Insights from African returnees from the United Kingdom," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    6. Amankwah-Amoah, Joseph & Adomako, Samuel & Danquah, Joseph Kwadwo & Opoku, Robert A. & Zahoor, Nadia, 2022. "Foreign market knowledge, entry mode choice and SME international performance in an emerging market," Journal of International Management, Elsevier, vol. 28(4).
    7. Guo, Yanting & Zheng, Gang, 2019. "How do firms upgrade capabilities for systemic catch-up in the open innovation context? A multiple-case study of three leading home appliance companies in China," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 36-48.
    8. Amankwah-Amoah, Joseph & Debrah, Yaw A. & Acquaah, Moses, 2023. "Business failures in institutionally weak environments: An examination of Virgin Atlantic’s failed adventure in sub-saharan africa," International Business Review, Elsevier, vol. 32(5).
    9. Adomako, Samuel & Amankwah-Amoah, Joseph & Tarba, Shlomo Y. & Khan, Zaheer, 2021. "Perceived corruption, business process digitization, and SMEs’ degree of internationalization in sub-Saharan Africa," Journal of Business Research, Elsevier, vol. 123(C), pages 196-207.
    10. Danso, Albert & Adomako, Samuel & Lartey, Theophilus & Amankwah-Amoah, Joseph & Owusu-Yirenkyi, Diana, 2020. "Stakeholder integration, environmental sustainability orientation and financial performance," Journal of Business Research, Elsevier, vol. 119(C), pages 652-662.

    More about this item

    JEL classification:

    • L19 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Other
    • L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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