Sustainability as a strategic response to the liability of foreignness: Empowering multilatinas for sustainable development

Objective: This study explores the role of sustainability as a strategic mechanism for multilatinas to overcome the liability of foreignness (LOF) and drive sustainable development in host countries. It also highlights the intersection of sustainability, business ethics, and internationalisation, f...

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Bibliographic Details
Main Authors: Ana Maria Gomez-Trujillo, Maria Alejandra Gonzalez-Perez, Juan Velez-Ocampo, Olga Patricia Castaño
Format: Article
Language:English
Published: Cracow University of Economics 2025-03-01
Series:Entrepreneurial Business and Economics Review
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Online Access:https://eber.uek.krakow.pl/eber/article/view/2768
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Summary:Objective: This study explores the role of sustainability as a strategic mechanism for multilatinas to overcome the liability of foreignness (LOF) and drive sustainable development in host countries. It also highlights the intersection of sustainability, business ethics, and internationalisation, focusing on their collective impact on sustainable development and identifying business ethics as a promising area for future research. Research Design & Methods: This article uses a single-case methodology to incorporate triangulation from diverse sources. We collected primary qualitative data from five Latin American countries, complemented by secondary data extracted from company reports and third-party communications. Findings: Our study contributes to the LOF and sustainability literature by demonstrating how an effective sustainability strategy empowers EMNEs to mitigate the inherent disadvantages of operating in foreign markets. Implications & Recommendations: By leveraging sustainability, these companies bolster their commitment to sustainable development in host countries, thus transcending traditional liabilities associated with their emerging market status. Contribution & Value Added: The findings from this single case study provide valuable insights into the intricate relationship between sustainability, internationalisation, and sustainable development within the complex landscape of emerging markets. This research contributes significantly to the scholarly debate surrounding these topics.
ISSN:2353-8821