Purpose This study aims to investigate the legitimacy challenges faced by emerging market digital platforms internationalizing under geopolitical salience, focusing on ByteDance as a case study. It also aims to reconceptualize the Liability of Origin (LOR) and liability of outsidership (LOO) concept in the context of digital platforms, identify specific challenges these enterprises encounter during internationalization amid digital economic globalization and explore strategic mechanisms that enable firms to maintain competitive advantages while overcoming inherent disadvantages in host countries. Design/methodology/approach The research uses an exploratory case study methodology with high contextualization, analyzing ByteDance’s international expansion. Data was collected from multiple sources including mainstream media coverage in host countries (USA, UK, Australia and India), editorial papers and publicly available corporate resources. The analysis systematically maps the manifestations of LOR and LOO for digital platforms and examines corresponding strategic responses, offering insights into how emerging market digital platforms navigate legitimacy challenges in developed markets within the context of escalating geopolitical tensions. Findings For emerging market digital platforms, the Liability of Origin (LOR) fundamentally shifts from traditional capability-based deficits to “governance-based trust deficits” centered on data sovereignty and algorithmic ideology. Under geopolitical salience, this origin-based stigma functions as an antecedent trigger that actively precipitates systemic network exclusion (liability of outsidership), manifesting as institutional severance and ecosystem decoupling rather than simple relational barriers. Furthermore, traditional compliance strategies face a “legitimacy trap,” where localization efforts paradoxically amplify scrutiny of the platform’s internalized core. Practical implications This research offers strategic guidance for digital platform enterprises seeking international expansion. It recommends strengthening institutional isomorphism through appropriate organizational design to establish legitimacy while preserving competitive advantages. Building rapid market response mechanisms, pursuing deep localization strategies and maintaining continuous innovation helps enterprises transcend origin-based limitations. It offers a context-sensitive framework for understanding digital globalization amidst “Great Power Competition.” Originality/value This study systematically distinguishes digital platforms from traditional multinational enterprises to reconceptualize their unique internationalization challenges. First, regarding Liability of Origin (LOR), the authors identify a qualitative shift in manifestations: from traditional “capability deficits” (e.g. product quality) to “governance-based trust deficits” (e.g. data sovereignty and algorithmic ideology), driven by geopolitical salience rather than institutional voids. Second, regarding liability of outsidership (LOO), the authors reveal that due to platforms’ high externalization, LOO manifests as “ecosystem decoupling” and “institutional severance” rather than simple relationship barriers. Finally, the authors uncover a dynamic interaction where origin-based stigma functions as a trigger that precipitates this systemic network exclusion, offering a nuanced framework for digital globalization.
Yang et al. (Wed,) studied this question.