Research Question/Issue This study examines the phenomenon of principal–principal conflicts in privatized companies in Vietnam. Since different types of shareholders may have competing interests, our study aims to address the following question: “How do different types of shareholders affect principal–principal conflicts in privatized companies in Asian emerging economies?” Research Findings/Insights Through a qualitative study, including 31 semistructured interviews with various governance actors from 14 privatized companies in Vietnam, we identify four types of principal–principal conflicts: (a) state controlling owners versus nonstate owners, (b) manager‐owners and affiliated strategic investors versus employee‐owners, (c) multiple opportunistic strategic investors versus minority employee‐owners, and (d) hibernating strategic investors versus other inside owners. Theoretical/Academic Implications Our study contributes to the extant research on principal–principal conflicts in emerging economies. We advance the debate on the complexity of relationships between inside and outside shareholders. Our findings demonstrate that an understanding of controlling and minority shareholders and institutional conditions provides a more fine‐grained understanding of the complexity of principal–principal conflicts. Practitioner/Policy Implications Our findings offer insights into how different types of shareholders seek to advance their own interests. This, in turn, can lead to them misinterpreting legal requirements. Thus, policymakers should consider different types of strategic investors and their strategic intent in the privatization process.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.