How liability of outsidership affect international performance?
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The liability of outsidership (LOO) impacts international performance by hindering firms from accessing local and global networks efficiently, affecting their market entry speed and success . Emerging-market multinationals (EMNEs) face more significant LOO challenges compared to developed-country multinationals (DMNEs) due to limited network access . Overcoming LOO involves strategies such as learning from the local environment, enhancing absorptive capacity, and forming alliances with suitable partners . For instance, the Undurraga winery successfully navigated LOO by employing a market penetration strategy, while the Brazilian winery Salton struggled with foreignness and outsidership liabilities, impacting its internationalization efforts . Understanding and addressing LOO through network structures and positions are crucial for enhancing international performance and market entry speed .
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| Papers (4) | Insight |
|---|---|
20 Sep 2016 | The liability of outsidership can hinder international performance, as seen in the case of Salton winery, which struggled with foreignness and outsidership characteristics during its internationalization process. |
01 Aug 2022 | The liability of outsidership (LOO) impacts international performance by hindering access to local and global networks. EMNEs face more LOO and can mitigate it through diverse partnerships. |
62 Citations | Liability of outsidership impacts international performance by influencing learning from the local environment, enhancing absorptive capacity, and being conditioned by the institutional environment in emerging market MNEs. |
| The liability of outsidership influences international performance by moderating the relationship between network structure and the willingness of outsiders to invest in gaining insidership. |
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