IDEAS home Printed from https://ideas.repec.org/a/pal/jintbs/v56y2025i3d10.1057_s41267-024-00756-w.html
   My bibliography  Save this article

Liability of foreignness in immersive technologies: evidence from extended reality innovations

Author

Listed:
  • Hyoryung Nam

    (Syracuse University)

  • Yiling Li

    (Yonsei University)

  • P. K. Kannan

    (University of Maryland)

  • Jeonghye Choi

    (Yonsei University)

Abstract

Emerging extended reality (XR) technologies, such as augmented reality (AR) and virtual reality (VR), enable global businesses to deliver immersive experiences to customers beyond geographical borders. Despite the opportunities, leveraging XR innovations in foreign markets can present significant challenges. This study investigates whether and under what conditions global businesses experience liability of foreignness (LOF) when leveraging XR innovations. We argue that LOF in XR innovations arises from the inherent disadvantages foreign firms face in delivering mentally fluent XR experiences, which in turn can diminish the effectiveness of their XR innovations compared to local counterparts. We further contend that the extent of LOF in XR innovations varies depending on the features of XR technology, with greater LOF in less realistic, more interactive, and more vivid XR innovations. We also suggest that foreign businesses can mitigate LOF by strategically leveraging brand newness and brand platforms. Our empirical analyses, based on a dataset of 257 beauty brands in South Korea from 2019 to 2022, support the presence of LOF in XR innovations and show how technology features and brand-specific factors influence the extent of LOF. Our findings provide valuable insights for global businesses developing strategies to configure immersive technologies in international markets.

Suggested Citation

  • Hyoryung Nam & Yiling Li & P. K. Kannan & Jeonghye Choi, 2025. "Liability of foreignness in immersive technologies: evidence from extended reality innovations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 56(3), pages 422-439, April.
    • Handle: RePEc:pal:jintbs:v:56:y:2025:i:3:d:10.1057_s41267-024-00756-w
    DOI: 10.1057/s41267-024-00756-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41267-024-00756-w
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41267-024-00756-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:56:y:2025:i:3:d:10.1057_s41267-024-00756-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.