{"title":"The liability of foreignness and operational security: evidence from emerging markets","authors":"Yuxiao Ye, Yiting Han, Baofeng Huo","doi":"10.1108/ijopm-04-2023-0264","DOIUrl":null,"url":null,"abstract":"<h3>Purpose</h3>\n<p>In this research, we explore the adverse impact of foreign ownership on operational security, a critical operational implication of the liability of foreignness (LOF).</p><!--/ Abstract__block -->\n<h3>Design/methodology/approach</h3>\n<p>The empirical analysis is based on a multi-country dataset from the World Bank Enterprises Survey, which contains detailed firm-level information from over 8,902 firms in 82 emerging market countries. We perform a series of robustness checks to further confirm our findings.</p><!--/ Abstract__block -->\n<h3>Findings</h3>\n<p>We find that a high ratio of foreign ownership is associated with an increased likelihood of security breaches and higher security costs. Our results also indicate that high levels of host countries’ institutional quality and firms’ local embeddedness can mitigate such vulnerability in operational security.</p><!--/ Abstract__block -->\n<h3>Originality/value</h3>\n<p>This study is one of the first to uncover the critical operational implication of the LOF, indicating that a high ratio of foreign ownership exposes firms to operational security challenges.</p><!--/ Abstract__block -->","PeriodicalId":14234,"journal":{"name":"International Journal of Operations & Production Management","volume":"15 1","pages":""},"PeriodicalIF":7.1000,"publicationDate":"2024-02-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Operations & Production Management","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1108/ijopm-04-2023-0264","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 0
Abstract
Purpose
In this research, we explore the adverse impact of foreign ownership on operational security, a critical operational implication of the liability of foreignness (LOF).
Design/methodology/approach
The empirical analysis is based on a multi-country dataset from the World Bank Enterprises Survey, which contains detailed firm-level information from over 8,902 firms in 82 emerging market countries. We perform a series of robustness checks to further confirm our findings.
Findings
We find that a high ratio of foreign ownership is associated with an increased likelihood of security breaches and higher security costs. Our results also indicate that high levels of host countries’ institutional quality and firms’ local embeddedness can mitigate such vulnerability in operational security.
Originality/value
This study is one of the first to uncover the critical operational implication of the LOF, indicating that a high ratio of foreign ownership exposes firms to operational security challenges.
期刊介绍:
The mission of the International Journal of Operations & Production Management (IJOPM) is to publish cutting-edge, innovative research with the potential to significantly advance the field of Operations and Supply Chain Management, both in theory and practice. Drawing on experiences from manufacturing and service sectors, in both private and public contexts, the journal has earned widespread respect in this complex and increasingly vital area of business management.
Methodologically, IJOPM encompasses a broad spectrum of empirically-based inquiry using suitable research frameworks, as long as they offer generic insights of substantial value to operations and supply chain management. While the journal does not categorically exclude specific empirical methodologies, it does not accept purely mathematical modeling pieces. Regardless of the chosen mode of inquiry or methods employed, the key criteria are appropriateness of methodology, clarity in the study's execution, and rigor in the application of methods. It's important to note that any contribution should explicitly contribute to theory. The journal actively encourages the use of mixed methods where appropriate and valuable for generating research insights.