Country-of-Origin and Social Resistance in Host Countries: The Case of a Chinese Firm

Yang Yu*, Yulong Liu

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

21 Citations (Scopus)

Abstract

While China's outward direct investments continue to soar, many Chinese firms reportedly face social resistance in host countries during the internationalization process. We explore this phenomenon from a country-of-origin (COO) perspective using Fiske and colleagues’ (Fiske, Cuddy, Glick, & Xu, 2002; Fiske, Xu, Cuddy, & Glick, 1999) stereotype content model. Our findings from a recent case in New Zealand show that China's COO emerges as a key variable influencing how local actors view Chinese investors. Specifically, despite China's significant economic and social developments over the past decades, it suffers from a somewhat negative country image in two stereotype dimensions: competence and warmth. This leads to a perception by local actors that Chinese firms are of low quality, which explains the source of resistance in society. To address such a liability of origin, Chinese firms must learn to deal with this form of stereotypical judgment encountered in a host environment. Further contributions and limitations of the study are discussed in the article.

Original languageEnglish
Pages (from-to)347-363
Number of pages17
JournalThunderbird International Business Review
Volume60
Issue number3
DOIs
Publication statusPublished - 1 May 2018
Externally publishedYes

Keywords

  • China
  • country-of-origin
  • liability of foreignness
  • social judgement
  • social resistance

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