There's no Place Like Home : A Strategic Framework to Overcome Liability of Foreignness in the German Car Market


Sofka, Wolfgang ; Zimmermann, Jörg


[img]
Vorschau
PDF
dp0584.pdf - Veröffentlichte Version

Download (516kB)

URL: http://ub-madoc.bib.uni-mannheim.de/1201
URN: urn:nbn:de:bsz:180-madoc-12015
Dokumenttyp: Arbeitspapier
Erscheinungsjahr: 2005
Sprache der Veröffentlichung: Englisch
Einrichtung: Sonstige Einrichtungen > Zentrum für Europ. Wirtschaftsforschung (ZEW)
MADOC-Schriftenreihe: Veröffentlichungen des ZEW (Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Fachgebiet: 330 Wirtschaft
Fachklassifikation: JEL: M10 F23 L62 ,
Normierte Schlagwörter (SWD): Deutschland , Kraftwagen , Globalisierung , Arbeitsmarkt
Abstract: Globalization has led to exciting new business opportunities around the globe. Still, national and cultural boundaries have not evaporated into a "borderless world." Several studies have identified so-called liabilities of foreignness that arise from a lack of embeddedness and roots in the host market and subsequent competitive disadvantages. Countervailing strategies for these effects have remained scarce so far. We suggest that this is due to the lack of a viable approach to identify and quantify these effects and develop a conceptual framework to empirically estimate the individual degree of liability of foreignness of a firm from a market perspective. We suggest that disruptive changes in a society change the dynamics of liability of foreignness and generate opportunities for foreign companies to optimize their localization strategies. We apply our approach to a large mature market with established international competition: the German new car market. For a comprehensive sample of roughly 1,400 car models from 2003 we estimate the relative turnover disadvantage for all major foreign manufacturers. We find that most foreign producers have managed to overcome liabilities of foreignness in Germany through firm-specific advantages. Still, some face significant challenges. A submarket analysis shows that home market advantages are more deeply rooted in the Western part of Germany and that foreign competitors find a more accessible competitive environment in Eastern Germany. Therefore, East Germany is a superior platform for deploying effective and efficient countervailing strategies. Moreover, we identify a broader rationale to engage early and decisively in untapped but promising markets like China.
Zusätzliche Informationen:

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




+ Zitationsbeispiel und Export

Sofka, Wolfgang und Zimmermann, Jörg (2005) There's no Place Like Home : A Strategic Framework to Overcome Liability of Foreignness in the German Car Market. [Arbeitspapier]
[img]
Vorschau



+ Suche Autoren in

+ Download-Statistik

Downloads im letzten Jahr

Detailierte Angaben



Sie haben einen Fehler gefunden? Teilen Sie uns Ihren Korrekturwunsch bitte hier mit: E-Mail


Actions (login required)

Eintrag anzeigen Eintrag anzeigen