Multinational platforms and legitimacy spillovers

AbstractMultinational platforms (MNPs), such as TikTok, Grab, and Airbnb, are facing significant legitimacy challenges in foreign markets. While some of these challenges are similar to those experienced by conventional multinational enterprises (MNEs), the platform-based business models of MNPs, which create value primarily through networks of external users and complementors, rather than through hierarchically controlled foreign subsidiaries, lead to unique legitimacy challenges and open up novel strategies for overcoming them. We explore how MNPs can leverage legitimacy spillovers from their complementors to overcome legitimacy challenges and establish credibility in new markets. We propose that effective governance and strategic management of complementor relationships can significantly enhance MNPs’ legitimacy across diverse institutional contexts. Our findings contribute to the literature on digital platform internationalization, offering new insights and strategic tools for MNP managers to navigate the complex global landscape.