From the Uppsala model to contemporary international business: a review of liabilities of outsidership as a theoretical framework
Sandun Weerasekera, Sashika Abeydeera Manoratne, Srinath DissanayakePurpose
The purpose of this systematic review is to explore how liabilities of outsidership (LoO) is positioned as a theory primarily in extant international business (IB) literature as well as other literature, including general management, international marketing and international entrepreneurship.
Design/methodology/approach
The systematic review identified a total of 120 papers based on a key word search of (“liability of outsidership” OR “outsidership”) AND (“international business” OR “multinational enterprise” OR “MNE”) AND (theory OR framework OR model) in Google Scholar. After removing duplicates, conference papers, dissertations, books and book chapters, 60 peer-reviewed journal articles representing IB, international marketing, international entrepreneurship and general management journals were reviewed.
Findings
Three core themes emerged in relation to varied applications. The first theme identified was ‘the emergence of LoO as a theory’ since the revised Uppsala model. The second theme was ‘LoO and the influence of institutions’ and the final theme was ‘LoO as a finite/recurring challenge’.
Research limitations/implications
The findings of this paper attempt to highlight LoO as a theory by advancing the revised Uppsala model. This paper will enable managers of MNEs to understand the nature of LoO and equip themselves with necessary strategies to overcome it.
Originality/value
This systematic review paper is unique from other related reviews. Prior literature reviews have focused primarily on LoO as an antecedent of firm performance or strategies to overcome LoO. In contrast, the current paper is the only systematic literature review that identifies LoO as a theory; explores LoO amidst absent/non-functioning institutions and identifies LoO as a finite or recurring barrier.