Foreignness in emerging markets ::the case of international New Ventures

This study focuses on how young firms manage their foreignness in host markets. We conducted a multiple case study of International New Ventures (INVs) seeking business development in China – a particularly complex host market for foreign young firms. Our findings reveal tensions between INVs' differentiation and alignment in China and the two distinct organizational identity (OI) responses: singular or dual OI. INVs put forward the internal and external attributes as they interact with stakeholders in China to differentiate themselves with their foreignness. Dual OI facilitates access to both international and local networks and allows development of capabilities. INVs with a dual OI (Foreign Insider) maintain commitment while those with single identity (Foreign International) decrease their commitment unless they gain acceptance of other foreign MNE subsidiaries. We highlight the implications of single and dual identities for organizational outcomes in the context of INVs and contribute to the research on foreignness.