Vol. 13 No. 1 (2025)
March 2025

Articles

Sustainability as a strategic response to the liability of foreignness: Empowering multilatinas for sustainable development

Published 2025-03-01

  • Ana Maria Gomez-Trujillo
    • ,
  • Maria Alejandra Gonzalez-Perez
    • ,
  • Juan Velez-Ocampo
    • ,
  • Olga Patricia Castaño

Ana Maria Gomez-Trujillo
CEIPA Business School

Maria Alejandra Gonzalez-Perez
Universidad EAFIT

Juan Velez-Ocampo
Universidad de Antioquia

Olga Patricia Castaño
ISA

Abstract

Objective: This study explores the role of sustainability as a strategic mechanism for multilatinas to overcome the liability of foreignness (LOF) and drive sustainable development in host countries. It also highlights the intersection of sustainability, business ethics, and internationalisation, focusing on their collective impact on sustainable development and identifying business ethics as a promising area for future research.

Research Design & Methods: This article uses a single-case methodology to incorporate triangulation from diverse sources. We collected primary qualitative data from five Latin American countries, complemented by secondary data extracted from company reports and third-party communications.

Findings: Our study contributes to the LOF and sustainability literature by demonstrating how an effective sustainability strategy empowers EMNEs to mitigate the inherent disadvantages of operating in foreign markets.

Implications & Recommendations: By leveraging sustainability, these companies bolster their commitment to sustainable development in host countries, thus transcending traditional liabilities associated with their emerging market status.

Contribution & Value Added: The findings from this single case study provide valuable insights into the intricate relationship between sustainability, internationalisation, and sustainable development within the complex landscape of emerging markets. This research contributes significantly to the scholarly debate surrounding these topics.

Keywords

sustainability strategy, liability of foreignness, multilatinas, emerging markets, sustainable development, internationalisation

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Author Biography

Ana Maria Gomez-Trujillo

PhD in Management, Universidad EAFIT, Colombia. Full Professor of international business at CEIPA powered by Arizona State University. Her research interests include the internationalisation of emerging markets firms, sustainability, and corporate social responsibility (CSR).

Maria Alejandra Gonzalez-Perez

PhD in Commerce, National University of Ireland, Galway; Full Professor of Management at Universidad EAFIT (Colombia). Her research interests include the internationalisation of emerging market firms, multilatinas, corporate social responsibility (CSR), and sustainability.

Juan Velez-Ocampo

PhD in Management, Universidad EAFIT, Colombia. Associate Professor and Doctoral Program Director – Universidad de Antioquia (Colombia). His research interests include reputation, sustainability, digital transformation, and emerging market firms’ internationalisation.

Olga Patricia Castaño

Vice-President of Corporate Strategy at ISA. Her research interests include organizational development, strategy, risks, and innovation.

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