Liability of Internationalization: Patriotic Legitimacy Deficit of Family Firms’ Internationalization
Prof. Bin LIU
Associate Professor
School of Management
Xiamen University
Date: 24 March 2026 (Tuesday)
Time: 10:30-12:00
Venue: E22-G008
Host: Prof. Iris YUAN, Associate Professor in Management
Abstract
This study examines how rising nationalism transforms internationalization from a competitive asset into a liability of internationalization, a home-country legitimacy deficit that arises when global expansion is judged through a patriotic lens. Presuming legitimacy as a dynamic evaluative judgment, we theorize that the liability of internationalization arises from a patriotic legitimacy deficit that prompts audiences to question firms’ loyalty when foreign activities conflict with nationalist expectations. Family firms (FFs) and state-owned enterprises (SOEs) provide a theoretically revealing contrast because FFs rely on family-based, relational legitimacy that does not automatically confer patriotic credibility, whereas SOEs inherit state-conferred legitimacy that shields them from nationalist scrutiny. We further argue that domestic philanthropy becomes a central tool for FFs to restore patriotic legitimacy because it offers a visible, domestically anchored signal of home-country commitment. Using panel data on Chinese listed firms (2012-2023) and a propensity score-matched difference-in-differences design around the Sino-US trade war, we find that FFs increase domestic philanthropy significantly more than SOEs, especially when operating in unfriendly countries, headquartered in high-nationalism regions, or led by CEOs with foreign residency. The findings show how firms navigate nationalist evaluations and why FFs, relative to SOEs, are uniquely exposed to patriotic legitimacy risks under globalization.
Speaker
Prof. Bin LIU is an Associate Professor in the Department of MBA Center at Xiamen University. He received a PhD in Management from The Chinese University of Hong Kong. His research interests are international business, corporate governance, and family business with a focus on emerging economies. He has published widely in peer-reviewed academic journals such as Journal of International Business Studies, Journal of International Business Policy, and the Journal of World Business. He received the Best Paper Award at 2019 Asia Pacific Regional Conference Meeting of Academy of International Business (AIB), Winner of the first runner-up for the Best Phenomenon-based Paper Award at Journal of World Business in 2019, IACMR-GSJ Global Strategy Best Paper Award at the Ninth Biennial International Association for Chinese Management Research Conference, Best Paper Award for Advanced Management Studies in 2021, Best Reviewer Award for Advanced Management Studies in 2018, 2020, 2021, 2022, and 2024. He serves as the Editorial Review Board for Asian Business and Management, Asia Pacific Journal of Management (APJM), and Advanced Management Studies, reviewing editor for APJM, special issue editor for Management and Organization Review (MOR) and Journal of International Management, senior editor for MOR, and the board member of AIB Emerging Markets Shared Interest Group.
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