Panasonic in China: A Search to Overcome the Liability of Foreignness

摘要

This paper analyzes the evolutionary trajectory of the Panasonic Corporation in China during the past 40 years from a liability of foreignness (LOF) perspective. Conceptually, the LOF is interpreted as dynamic processes that occur on entry and subsequently as a result of interactions in corporate strategy, host country policies and local rivalries. For Panasonic in China these interactions are highlighted through three distinct phases, involving LOF on entry and in two subsequent post-entry periods. This evolution has seen Panasonic becoming increasingly embedded in China in terms of decision-making, innovation, marketing and supply networks.