Creating the asset of foreignness: Schrödinger’s cat and lessons from the Nissan revival

This paper challenges the assumption in cross-cultural research of liability of foreignness (LOF). The literature review demonstrates that LOF comes from pressures for isomorphism, while asset of foreignness (AOF) can derive from the active process of breaking norms. The purpose of this paper is to explore how leaders can initiate and sustain AOF.

The paper analyzes the case of the Nissan revival led by Carlos Ghosn and the impact in the years after. The analysis is based on the authors’ interviews and discussions with Ghosn and senior leaders at Nissan and Renault, complemented with published interviews and assessments.

Analysis confirmed the potential for AOF, and further uncovered four patterns of behavior that created AOF virtuous cycles among Nissan leaders: initiating trust, shaping identity, anchoring and transcending common language, and acting positively on ignorance. The virtuous cycles were sustainable and transformed into new global strategic perspectives.

The paper proposes a research model identifying moderators between foreignness and performance. Generalizability is limited by the focus on a single case study.

The four sets of behaviors can serve as guides to action for leaders when working in foreign contexts.

This research goes beneath the surface of a famous example to analyze leadership dynamics over time, and provides insight on positive aspects of foreignness.