Liability of Outsidership. How do companies overcome liability of outsidership?

Abstract

In the light of the discussions of internationalization and liability of foreignness, this research aims to explain how liability of outsidership is overcome. As outsidership from relevant business networks may be fatal for business, we examine how three Swedish sourcing companies have managed to overcome it when entering China. As we have chosen China as the penetrated market of our companies, with the importance of guanxi in mind, we have put liability of outsidership on its edge. Our findings suggest that the penetrations of relevant business networks are the results of inputs. These inputs have originated from already established relationships, divided into personal networks, business networks and other networks.