Liability of foreignness and liability of outsidership: understanding blockchain through Uppsala lens

Sima, Yueling; Moura, Stephanie; Silva Rêgo, Bernardo

Liability of foreignness and liability of outsidership: understanding blockchain through Uppsala lens

Files

2022_EJIM-96283_AAV.pdf(463.36 KB)

Accepted Version

Date

2025

Authors

Sima, Yueling

Moura, Stephanie

Silva Rêgo, Bernardo

Publisher

Inderscience Publishers

Published Version

10.1504/ejim.2022.10055778

Abstract

This paper discusses how the blockchain governance model can add a new perspective to the International Business literature and shape the Liability of Outsidership (LOO) and Liability of Foreignness (LOF). Based on Uppsala tenets, we develop a conceptual model based on four propositions to show how the LOO and LOF can be less of an impeditive in a blockchain environment. The decentralised coordination allows a more symmetric distribution of information, hence lessening the power struggle, enhancing commitment and reducing the time consumption of trust-based transactions. This paper contributes to the literature by (a) introducing a nuanced discussion about technology in international business, presenting blockchain governance as a hybrid of networks and contracts and (b) discussing how blockchain governance mechanisms can moderate LOO and LOF impact on the firms' legitimacy.

Keywords

Governance , Liability of foreignness , Liability of outsidership , Blockchain , Trust , Legitimacy

Citation

Silva-Rêgo, B., Moura, S. and Sima, Y. (2025) 'Liability of foreignness and liability of outsidership: understanding blockchain through Uppsala lens', European Journal of International Management, 27(2), pp. 299-323. https://doi.org/10.1504/EJIM.2022.10055778