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

Authors: Bernardo Silva-Rêgo; Stephanie T.G. Moura; Yueling Sima

Addresses: Universidade do Grande Rio - UNIGRANRIO, Duque de Caxias, Rio de Janeiro, Brazil; Centro Federal de Educação Tecnológica Celso Suckow da Fonseca - CEFET-RJ Rio de Janeiro, Rio de Janeiro, Brazil ' Cork University Business School, University College Cork (UCC), Cork, Ireland ' Cork University Business School, University College Cork (UCC), Cork, Ireland

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 impediment 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.

DOI: 10.1504/EJIM.2025.148798

European Journal of International Management, 2025 Vol.27 No.2, pp.299 - 323

Received: 23 Sep 2021
Accepted: 11 Apr 2022
Published online: 25 Sep 2025 *

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