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Creating the asset of foreignness: Schrödinger’s cat and lessons from the Nissan revival

Creating the asset of foreignness: Schrödinger’s cat and lessons from the Nissan revival PurposeThis paper challenges the assumption in cross-cultural research of liability of foreignness (LOF). The literature review demonstrates that LOF comes from pressures for isomorphism, while asset of foreignness (AOF) can derive from the active process of breaking norms. The purpose of this paper is to explore how leaders can initiate and sustain AOF.Design/methodology/approachThe paper analyzes the case of the Nissan revival led by Carlos Ghosn and the impact in the years after. The analysis is based on the authors’ interviews and discussions with Ghosn and senior leaders at Nissan and Renault, complemented with published interviews and assessments.FindingsAnalysis confirmed the potential for AOF, and further uncovered four patterns of behavior that created AOF virtuous cycles among Nissan leaders: initiating trust, shaping identity, anchoring and transcending common language, and acting positively on ignorance. The virtuous cycles were sustainable and transformed into new global strategic perspectives.Research limitations/implicationsThe paper proposes a research model identifying moderators between foreignness and performance. Generalizability is limited by the focus on a single case study.Practical implicationsThe four sets of behaviors can serve as guides to action for leaders when working in foreign contexts.Originality/valueThis research goes beneath the surface of a famous example to analyze leadership dynamics over time, and provides insight on positive aspects of foreignness. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Cross Cultural & Strategic Management Emerald Publishing

Creating the asset of foreignness: Schrödinger’s cat and lessons from the Nissan revival

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References (88)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
2059-5794
DOI
10.1108/CCSM-12-2015-0194
Publisher site
See Article on Publisher Site

Abstract

PurposeThis paper challenges the assumption in cross-cultural research of liability of foreignness (LOF). The literature review demonstrates that LOF comes from pressures for isomorphism, while asset of foreignness (AOF) can derive from the active process of breaking norms. The purpose of this paper is to explore how leaders can initiate and sustain AOF.Design/methodology/approachThe paper analyzes the case of the Nissan revival led by Carlos Ghosn and the impact in the years after. The analysis is based on the authors’ interviews and discussions with Ghosn and senior leaders at Nissan and Renault, complemented with published interviews and assessments.FindingsAnalysis confirmed the potential for AOF, and further uncovered four patterns of behavior that created AOF virtuous cycles among Nissan leaders: initiating trust, shaping identity, anchoring and transcending common language, and acting positively on ignorance. The virtuous cycles were sustainable and transformed into new global strategic perspectives.Research limitations/implicationsThe paper proposes a research model identifying moderators between foreignness and performance. Generalizability is limited by the focus on a single case study.Practical implicationsThe four sets of behaviors can serve as guides to action for leaders when working in foreign contexts.Originality/valueThis research goes beneath the surface of a famous example to analyze leadership dynamics over time, and provides insight on positive aspects of foreignness.

Journal

Cross Cultural & Strategic Management – Emerald Publishing

Published: Feb 6, 2017

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