Liability of outsidership in multinational enterprises: a review and research agenda

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dc.contributor.authorWeerasekera, S.
dc.contributor.authorHerath, S.
dc.contributor.authorWijewardena, C.
dc.date.issued2025
dc.description.abstractPurpose – 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.
dc.description.statementofresponsibilitySandun Weerasekera and Sashya Maheede Herath
dc.identifier.citationReview of International Business and Strategy, 2025; 35(1):102-115
dc.identifier.doi10.1108/RIBS-08-2024-0093
dc.identifier.issn2059-6014
dc.identifier.issn2059-6014
dc.identifier.orcidWijewardena, C. [0000-0001-7438-9563]
dc.identifier.urihttps://hdl.handle.net/2440/143697
dc.language.isoen
dc.publisherEmerald
dc.rights© 2025 Emerald Publishing Limited
dc.source.urihttps://doi.org/10.1108/ribs-08-2024-0093
dc.subjectLiabilities of Outsidership (LoO); Multinational enterprises (MNEs); Liability of foreignness; Uppsala model
dc.titleLiability of outsidership in multinational enterprises: a review and research agenda
dc.typeJournal article
pubs.publication-statusPublished online

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