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

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.