Liability of foreignness in immersive technologies: evidence from extended reality innovations

Abstract

Emerging extended reality (XR) technologies, such as augmented reality (AR) and virtual reality (VR), enable global businesses to deliver immersive experiences to customers beyond geographical borders. Despite the opportunities, leveraging XR innovations in foreign markets can present significant challenges. This study investigates whether and under what conditions global businesses experience liability of foreignness (LOF) when leveraging XR innovations. We argue that LOF in XR innovations arises from the inherent disadvantages foreign firms face in delivering mentally fluent XR experiences, which in turn can diminish the effectiveness of their XR innovations compared to local counterparts. We further contend that the extent of LOF in XR innovations varies depending on the features of XR technology, with greater LOF in less realistic, more interactive, and more vivid XR innovations. We also suggest that foreign businesses can mitigate LOF by strategically leveraging brand newness and brand platforms. Our empirical analyses, based on a dataset of 257 beauty brands in South Korea from 2019 to 2022, support the presence of LOF in XR innovations and show how technology features and brand-specific factors influence the extent of LOF. Our findings provide valuable insights for global businesses developing strategies to configure immersive technologies in international markets.,Les technologies & eacute;mergentes de r & eacute;alit & eacute; & eacute;tendue (Extended Reality - XR), telles que la r & eacute;alit & eacute; augment & eacute;e (Augmented Reality - AR) et la r & eacute;alit & eacute; virtuelle (Virtual Reality - VR), permettent aux entreprises internationales d'offrir des exp & eacute;riences immersives & agrave; leurs clients au-del & agrave; des fronti & egrave;res g & eacute;ographiques. Malgr & eacute; les opportunit & eacute;s qu'elles offrent, l'exploitation des innovations de XR sur les march & eacute;s & eacute;trangers peut pr & eacute;senter des d & eacute;fis importants. La pr & eacute;sente recherche examine si et dans quelles conditions les entreprises internationales sont confront & eacute;es aux handicaps et co & ucirc;ts li & eacute;s & agrave; leur nationalit & eacute; & eacute;trang & egrave;re (Liability of Foreignness - LOF) lorsqu'elles tirent parti des innovations de XR. Nous argumentons que les LOF dans les innovations de XR d & eacute;coulent des d & eacute;savantages inh & eacute;rents auxquels les entreprises & eacute;trang & egrave;res sont confront & eacute;es lorsqu'il s'agit de fournir des exp & eacute;riences de XR mentalement fluides, ce qui peut & agrave; son tour diminuer l'efficacit & eacute; de leurs innovations de XR par rapport & agrave; leurs homologues locaux. Nous argumentons en outre que l'ampleur des LOF dans les innovations de XR varie en fonction des caract & eacute;ristiques de la technologie de XR, avec les LOF plus importants dans les innovations de XR moins r & eacute;alistes, plus interactives et plus vivantes. Nous sugg & eacute;rons & eacute;galement que les entreprises & eacute;trang & egrave;res peuvent att & eacute;nuer les LOF en tirant strat & eacute;giquement parti de la nouveaut & eacute; de la marque et des plates-formes de marque. Nos analyses empiriques, bas & eacute;es sur un ensemble de donn & eacute;es de 257 marques de beaut & eacute; en Cor & eacute;e du Sud de 2019 & agrave; 2022, confirment la pr & eacute;sence des LOF dans les innovations de XR, et montrent comment les caract & eacute;ristiques technologiques et les facteurs sp & eacute;cifiques & agrave; la marque influencent l'ampleur des LOF. Nos r & eacute;sultats apportent des renseignements pr & eacute;cieux aux entreprises internationales qui & eacute;laborent des strat & eacute;gies visant & agrave; configurer des technologies immersives sur les march & eacute;s internationaux.,Las tecnolog & iacute;as emergentes de realidad extendida (XR), como la realidad aumentada (RA) y la realidad virtual (RV), permiten a las empresas globales ofrecer experiencias inmersivas a los clientes m & aacute;s all & aacute; de las fronteras geogr & aacute;ficas. A pesar de las oportunidades, el aprovechamiento de las innovaciones de XR en mercados extranjeros puede presentar desaf & iacute;os significativos. Este estudio investiga si las empresas globales experimentan desventaja por extranjer & iacute;a (LOF, por sus siglas en ingl & eacute;s) al implementar innovaciones de XR y en qu & eacute; condiciones ocurre. Argumentamos que la desventaja por extranjer & iacute;a en innovaciones de XR surge de las desventajas inherentes que enfrentan las empresas extranjeras al ofrecer experiencias de XR mentalmente fluidas, lo que a su vez puede disminuir la efectividad de sus innovaciones de XR en comparaci & oacute;n con sus contrapartes locales. Adem & aacute;s, sostenemos que el grado de desventaja por extranjer & iacute;a en innovaciones de XR var & iacute;a seg & uacute;n las caracter & iacute;sticas de la tecnolog & iacute;a de XR, con mayor desventaja por extranjer & iacute;a en innovaciones de XR menos realistas, m & aacute;s interactivas y m & aacute;s v & iacute;vidas. Tambi & eacute;n sugerimos que las empresas extranjeras pueden mitigar la desventaja por extranjer & iacute;a aprovechando estrat & eacute;gicamente la novedad de la marca y las plataformas de marca. Nuestros an & aacute;lisis emp & iacute;ricos, basados en una base de datos de 257 marcas de belleza en Corea del Sur desde 2019 hasta 2022, respaldan la presencia de desventaja por extranjer & iacute;a en innovaciones de XR y muestran c & oacute;mo las caracter & iacute;sticas tecnol & oacute;gicas y los factores espec & iacute;ficos de la marca influyen en el grado de desventaja por extranjer & iacute;a. Nuestros hallazgos proporcionan informaci & oacute;n valiosa para que las empresas globales desarrollen estrategias para configurar tecnolog & iacute;as inmersivas en mercados internacionales.,Tecnologias emergentes de realidade estendida (XR), como realidade aumentada (AR) e realidade virtual (VR), permitem que empresas globais ofere & ccedil;am experi & ecirc;ncias imersivas a clientes al & eacute;m de fronteiras geogr & aacute;ficas. Apesar das oportunidades, alavancar inova & ccedil;& otilde;es de XR em mercados externos pode apresentar desafios significativos. Este estudo investiga se, e em que condi & ccedil;& otilde;es, empresas globais experimentam a desvantagem de ser estrangeiro (LOF) ao alavancar inova & ccedil;& otilde;es de XR. Argumentamos que a LOF em inova & ccedil;& otilde;es XR surge de desvantagens inerentes que empresas estrangeiras enfrentam ao fornecer experi & ecirc;ncias XR mentalmente fluentes, o que, por sua vez, pode diminuir a efic & aacute;cia de suas inova & ccedil;& otilde;es XR em compara & ccedil;& atilde;o com empresas locais. Afirmamos ainda que a extens & atilde;o da LOF em inova & ccedil;& otilde;es XR varia dependendo de atributos da tecnologia XR, com maior LOF em inova & ccedil;& otilde;es XR menos realistas, mais interativas e mais v & iacute;vidas. Tamb & eacute;m sugerimos que empresas estrangeiras possam mitigar a LOF alavancando estrategicamente a novidade da marca e plataformas da marca. Nossas an & aacute;lises emp & iacute;ricas, baseadas em um conjunto de dados de 257 marcas de beleza na Coreia do Sul de 2019 a 2022, apoiam a presen & ccedil;a de LOF em inova & ccedil;& otilde;es de XR e mostram como atributos da tecnologia e fatores espec & iacute;ficos da marca influenciam a extens & atilde;o da LOF. Nossos achados fornecem insights valiosos para empresas globais que desenvolvem estrat & eacute;gias para configurar tecnologias imersivas em mercados internacionais.,(sic)(sic)(sic)(sic)(sic)(sic)(sic) (XR) (sic)(sic), (sic)(sic)(sic)(sic)(sic) (AR) (sic)(sic)(sic)(sic)(sic) (VR), (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic), (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic).(sic)(sic)(sic)(sic)(sic)(sic), (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic) XR (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic). (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic) XR (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(LOF).(sic)(sic)(sic)(sic), XR (sic)(sic)(sic)(sic) LOF (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic) XR (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic). (sic)(sic)(sic)(sic)(sic)(sic)(sic), (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic) XR (sic)(sic)(sic)(sic)(sic)(sic). (sic)(sic), (sic)(sic)(sic)(sic) XR (sic)(sic)(sic) LOF (sic)(sic)(sic)(sic) XR (sic)(sic)(sic)(sic)(sic)(sic)(sic). (sic)(sic)(sic)(sic)(sic)(sic),(sic)(sic)(sic)(sic)(sic),(sic)(sic)(sic)(sic)(sic)(sic)XR (sic)(sic)(sic), LOF (sic)(sic)(sic)(sic).(sic)(sic), (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)LOF.(sic)(sic)(sic)(sic)(sic) 2019 (sic)(sic) 2022 (sic)(sic)(sic)(sic) 257 (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic), (sic)(sic)(sic)(sic)(sic) XR (sic)(sic)(sic) LOF(sic)(sic)(sic), (sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic) LOF (sic)(sic)(sic).(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic)(sic).,