Liability of outsidership in multinational enterprises: a review and research agenda
Sandun Weerasekera et al.
What the paper says
Purpose The purpose of this paper is to discuss the notion of the Liability of Outsidership (LoO) in multinational enterprises’ (MNEs) operations, following Johanson and Vahlne's (2009) revision of the Uppsala model. This study seeks to identify the sources of outsidership and the strategies used by MNEs to overcome these liabilities, providing a comprehensive overview for practitioners, academics and policymakers. Design/methodology/approach This paper studies firm-level operations and investigations of foreign direct investment by MNEs. By synthesising existing research and theoretical frameworks, this study identifies key dimensions and determinants of LoO and offers insights into its implications for international business strategy. This paper’s approach ensures a holistic understanding of the concept, drawing from diverse sources to present a well-rounded perspective. Findings This study reveals two broad themes in the literature: firm-specific factors, such as market entry decisions, managerial attributes and business nature, and country-specific factors, including economic, social and political conditions. The authors highlight critical insights into these factors and identify successful strategies that MNEs use to become embedded in local networks. Research limitations/implications The insights from this study will aid academics and researchers in gaining a comprehensive understanding of the LoO and identifying future research directions. Additionally, this study will assist MNE leaders and managers in understanding the key dynamics of foreign markets and the critical factors to consider in their internationalisation strategies. Originality/value This study discusses LoO in MNEs by offering a holistic overview to identify the sources of outsidership and the strategies used by MNEs to overcome these liabilities. This paper highlights key gaps and areas for future research and proposes practical strategies that MNEs can adopt to overcome outsidership, thereby serving as a valuable resource for both practitioners and policymakers.
4 citations
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.37 × 0.4 = 0.15 |
| M · momentum | 0.60 × 0.15 = 0.09 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.