How Emerging Country MNEs (EMNEs) Address the Liability of Foreignness: The Solar Panel Case

摘要： Much existing literature on the Liability of Foreignness (LoF) concentrates on the manner in which it impacts on the strategy and performance of service based Multi-National Enterprises (MNEs) from developed economies expanding through Foreign Direct Investment (FDI). Few researchers have explored the LoF faced by more trade-oriented companies or Emerging market MNEs (EMNEs). This paper seeks to contribute to these gaps in the literature by exploring how LoF impacts on trade-based internationalisation by EMNEs and the mitigating strategies used to reduce LoF in this context. Through a case study of the European Union (EU) antidumping investigation against Chinese solar panel producers, the paper will seek to shed light on these questions. The case demonstrates how Chinese MNEs used sophisticated strategies of localisation, alliance-building and appealing to universal values in seeking to overcome their LoF. We argue that the evolution of company strategy in this case demonstrates both that LoF is relevant to trade-oriented MNEs and that existing research can provide useful insights into potential strategies for mitigation. We also argue that MNEs in this case also benefited from an Asset of Foreignness (AoF) in that they had a pro-active, supportive home state.