Abstract: The concept of liability of ecosystem integration (LoEI) expands the scope of discussions on liability of foreignness (LoF) and liability of outsider (LoO). Regarding the influencing factors of companies going overseas, LoEI broadens the scope of responsibilities that foreign entrants may face and proposes the establishment of a multi-layered local ecosystem to be effective in the host country market, but the process mechanism of how companies overcome LoEI has not yet been explored. This paper uses case analysis and NCA and fsQCA methods, taking legitimacy acquisition as a clue to analyze the dynamic process mechanism of how overseas enterprises overcome LoEI, and explore the combination of ecosystem configurations that affect the level of overseas enterprises overcoming LoEI. The study concludes that: (1) the dynamic process model of LoEI includes three stages: encountering LoEI at the initial market entry period, maintaining LoEI at the market development period, and defending LoEI at the period of external shocks; (2) ecosystem configuration combinations that produce high LoEI-overcoming levels include institutional distance, Gini index, urbanization rate, foreign capital inflow, trade competitive advantage, and economic complexity. The research provides theoretical support and guidance for overseas enterprises and economically open countries to achieve high local ecosystem embeddedness and build their development environment.

Key words: liability of ecosystem integration, legitimacy, NCA, fsQCA