In the context of China's "going out" policy and the the Belt and Road Initiative, it is necessary to study the source country disadvantages suffered by multinational enterprises in emerging economies in the process of internationalization. Based on previous research, this article systematically reviews the formation mechanisms of source country disadvantage from the perspectives of institutional theory, organizational identity, and resource-based theory. It constructs a research framework for source country disadvantage, and summarizes strategies for overcoming source country disadvantage from aspects such as corporate social responsibility, organizational identity, institutional entrepreneurship, and organizational identity.

Bowen Fan. Research on the Formation and Overcoming Strategies of Liability of Origin. Academic Journal of Business & Management (2023) Vol. 5, Issue 17: 76-83. https://doi.org/10.25236/AJBM.2023.051713.

[1] Kostova, T, Zaheer, et al. Organizational legitimacy under conditions of complexity: the case of the multinational enterprise.[J]. Academy of Management Review, 1999, 24(1):64-81.

[2] Zaheer, S. Overcoming the liability of foreignness[J]. Academy of Management Journal, 1995, 38(2):341-363. 

[3] Eden L, Miller S R. Distance matters: Liability of foreignness, institutional distance and ownership strategy[M]//" Theories of the Multinational Enterprise: Diversity, Complexity and Relevance". Emerald Group Publishing Limited, 2004, 16: 187-221.

[4] Bartlett C A, Ghoshal S. Going global: lessons from late movers[J]. Reading, 2000, 1(3): 75-84. 

[5] Ramachandran J, Pant A. The liabilities of origin: An emerging economy perspective on the costs of doing business abroad[J]. Advances in International Management, 2010, 23.

[6] Marano, Valentina, Tashman, et al. Escaping the iron cage: Liabilities of origin and CSR reporting of emerging market multinational enterprises.[J]. Journal of International Business Studies, 2017. 

[7] Luo Y, Tung R L. International expansion of emerging market enterprises: A springboard perspective[J]. Journal of International Business Studies, 2007, 38: 481-498.

[8] Suchman M C. Managing legitimacy: Strategic and institutional approaches[J]. Academy of Management Review, 1995, 20(3): 571-610. 

[9] Rottig D. Institutional distance, social capital, and the performance of foreign acquisitions in the United States[D]. Florida Atlantic University, 2008. 

[10] Yang Z, Su C, Fam K S. Dealing with institutional distances in international marketing channels: Governance strategies that engender legitimacy and efficiency[J]. Journal of Marketing, 2012, 76(3): 41-55.

[11] Yang Bo. The Dual Disadvantages of Multinational Enterprises from Emerging Markets [J]. Business and Management Journal,2019,41(01):56-70.DOI:10.19616/j.cnki.bmj.2019.01.004. 

[12] Luo Y, Xue Q, Han B. How emerging market governments promote outward FDI: Experience from China[J]. Journal Of World Business, 2010, 45(1): 68-79.

[13] Cui L, Jiang F. State ownership effect on firms' FDI ownership decisions under institutional pressure: A study of Chinese outward-investing firms[J]. Journal Of International Business Studies, 2012, 43: 264-284. 

[14] Wang C, Hong J, Kafouros M, et al. Exploring the role of government involvement in outward FDI from emerging economies[J]. Journal of International Business Studies, 2012, 43: 655-676.

[15] Yamakawa Y, Peng M W, Deeds D L. What drives new ventures to internationalize from emerging to developed economies?[J]. Entrepreneurship Theory And Practice, 2008, 32(1): 59-82.

[16] Wei Jiang, Yang Yang. Bridging the Chasm Between Identities: Identity Asymmetry and Post-acquisition Integration Strategy[J]. Journal of Management World,2018,34(06):140-156+188. DOI:10. 19744/j.cnki.11-1235/f.2018.06.012.

[17] Li Xueling, Wei Junwei, Wan Nina. Influence of Institutional Distance on Legitimation Strategic Choice of Multinational Enterprises —A Empirical Research on Chinese Multinational Companies [J]. Journal of Industrial Technological Economics,2019,38(04):109-115. 

[18] Amankwah-Amoah J, Debrah Y A. Toward a construct of liability of origin[J]. Industrial and Corporate Change, 2017, 26(2): 211-231.

[19] Du Xiaojun, Yang Bo, Qi Chaoshun, Xiao Chenhao. Mechanism of Overcoming the Liability of Foreignness:Organizational Indentity Change An Exploratory Case Study of Lenovo and COSCO [J]. China Industrial Economics,2015(12):130-145.DOI:10.19581/j.cnki.ciejournal.2015.12.010.

[20] Wang S L, Luo Y, Lu X, et al. Autonomy delegation to foreign subsidiaries: An enabling mechanism for emerging-market multinationals[J]. Journal of International Business Studies, 2014, 45: 111-130.

[21] Yin Juelin. An Investigation of the  Antecedents of  CSR for Chinese Companies[J]. Chinese Journal of Management, 2012, 9(11):1679-1688.

[22] Meng Mengmeng, Tao Qiuyan, Zhu Binhai. The Effect of Corporate Social Responsibility on the Organizational Legitimacy —Moderating Role of Perceived Institutional Environment and Legal Efficiency[J]. Research on Economics and Management,2019,40(03):117-128. DOI:10.13502/j.cnki. issn1000-7636.2019.03.009.

[23] Pan Zhen, Yang Liu, Yin Huafang. The Effect of Chinese Enterprises Internationalization on Corporate Social Responsibility [J]. Business and Management Journal,2020,42(09):27-48. DOI:10.19616/j.cnki.bmj.2020.09.002.

[24] Chen Limin, Bu Xuelin. On the Influence of Social Responsibility Disclosure on the Performance of Internationalized Enterprises [J]. Journal of Management,2021,34(03):68-88.DOI:10.19808/j.cnki.41-1408/F.2021.0023. 

[25] Pant A, Ramachandran J. Legitimacy beyond borders: Indian software services firms in the United States, 1984 to 2004[J]. Global Strategy Journal, 2012, 2(3): 224-243. 

[26] Pant A, Ramachandran J. Navigating identity duality in multinational subsidiaries: A paradox lens on identity claims at Hindustan Unilever 1959–2015[J]. Journal of International Business Studies, 2017, 48: 664-692.

[27] Yang Bo, Xu Hui. Research on Organizational Identity Management Model after Reverse Cross-border M&As of Enterprises [J]. China Industrial Economics,2020(01):174-192. DOI:10.19581/j.cnki. ciejournal.2020.01.011.

[28] Sun Guohui, Jiang Hao. Research on the Influence of the Country-of-Brand Image on Transnational Brand Alliance Effects----Baes on Data of Personal Computer Consumers[J]. Business and Management Journal, 2014, 36(07):80-89.DOI:10.19616/j.cnki.bmj.2014.07.011.

[29] Liu Jianli, Raymond Liu. A Literature Review on the Country-of-origin Effect Research [J]. Journal of Business Economics, 2018(06):61-73.DOI:10.14134/j.cnki.cn33-1336/f.2018.06.006.