Internationalization of hybrid state-owned enterprises from emerging markets: Institutional investors as enablers

Panicker, Vidya Sukumara; Upadhyayula, Rajesh Srinivas; Sivakumar, Sandeep

doi:10.1016/j.jbusres.2022.07.018

Cited by 11 publications

(9 citation statements)

References 147 publications

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“…The parent company can support its subsidiary units with additional resource backing (Meyer and Su, 2015). For instance, considerable state support can mitigate the adverse effects of the institutional environment (Rygh and Benito, 2022; Wang et al , 2012a), potential resource shortages (Panicker et al , 2022) and intense competition from other multinationals in the host country (Birkinshaw et al , 2005).…”

Section: Literature Review and Hypothesismentioning

confidence: 99%

“…Some researchers posit that SOEs are less internationalized than non-SOEs (Mariotti and Marzano, 2019) due to agency and political conflicts, making business strategy and international expansion challenging (Kalasin et al , 2020). Conversely, others argue that SOEs can be less efficient in resource allocation than private companies (Panicker et al , 2022), given their alignment with social and political objectives, leading to economic inefficiencies (Lazzarini and Musacchio, 2018).…”

Section: Literature Review and Hypothesismentioning

confidence: 99%

“…Yu (2013) investigated numerous Chinese firms and reported that the relationship between state ownership and firm performance follows a U-shaped pattern, suggesting that a higher level of state ownership is preferable to dispersed ownership because of governmental and political connections. Specifically, Panicker et al (2022) demonstrated that foreign ownership in SOEs is beneficial during internationalization, whereas state ownership in SOEs is negatively associated with SOE international expansion.…”

Section: Literature Review and Hypothesismentioning

confidence: 99%

“…Over the decades, international business (IB) studies have led to an increased interest in the field of state-owned enterprises (SOEs) due to the rapid economic expansion of several emerging multinational enterprises (EMNEs) (Cuervo-Cazurra et al , 2014; Cuervo-Cazurra and Li, 2021; Kalasin et al , 2020; Molina-Sieiro et al , 2023; Zhang et al , 2022). Consequently, proponents of the resource-based view argue that government provides unique resources inherent to SOEs (Chan and Pattnaik, 2021; Panicker et al , 2022; Wang et al , 2012a). Accordingly, the government functions as a distinctive shareholder, providing benefits to SOEs, such as more access to resources (Benito et al , 2016; Huang et al , 2022), financial support (Finchelstein et al , 2022; Tan et al , 2014) and political ties facilitating access to location advantage and decision of investment (Panibratov et al , 2022).…”

Section: Introductionmentioning

confidence: 99%

“…For example, Wang et al (2012a) demonstrated the importance of government affiliation with SOEs in acquiring specific resources and increasing international expansion. Recently, Panicker et al (2022) reported a negative association between state ownership in SOEs and internationalization, suggesting that state involvement constrains certain resources, thereby limiting international expansion.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

The influence of home-country resources and state ownership on subsidiary’s performance: a multilevel perspective

Alcântara,

Calegario,

Viglioni

et al. 2023

EBR

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Purpose Although emerging markets are distinctly known for the rapid growth and international expansion of their state-owned enterprises, little is known about the influence of parent resource advantages and mixed state ownership on a subsidiary’s performance. Using the resource-based view, this study aims to investigate how resource advantages from the parent company and state ownership influence the performance of subsidiaries. Design/methodology/approach This study included a unique data set of 207 subsidiaries from 33 large Brazilian multinationals located in 32 countries from 2000 to 2015. The authors used a hierarchical linear modeling and a multilevel structure based on data at different levels to analyze the influence of home-country parent resource advantages and state ownership on host-country subsidiary’s performance. Findings This study illustrates that state ownership can alleviate the resource advantages of parent companies. Evidence is presented, indicating that low and medium degrees of state ownership have a negative impact on the resource advantages of the parent company, consequently reducing the subsidiary’s performance. Moreover, this study highlights that low and medium degrees of state ownership lead to conflicting interests between state ownership and parent resource advantages, resulting in an overall decline in subsidiary performance. Originality/value This research contributes new evidence regarding state ownership and resource advantages to the field of international business studies and the domain of Latin American multinational enterprises, Multilatinas. The results suggest that low and medium levels of state ownership diminish the influx of resources from parent companies, thereby restricting the subsidiary’s performance.

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Section: Literature Review and Hypothesismentioning

confidence: 99%

Section: Literature Review and Hypothesismentioning

confidence: 99%

Section: Literature Review and Hypothesismentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

The influence of home-country resources and state ownership on subsidiary’s performance: a multilevel perspective

Alcântara,

Calegario,

Viglioni

et al. 2023

EBR

View full text Add to dashboard Cite

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Attribute imbalances and innovation implementation based on grounded theory: A case of Chinese enterprises in Gansu Province

et al. 2023

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The purpose of this study is to explore what are the determinant influencing factors of the dilemma faced by state‐owned enterprises (SOEs) in implementing innovation‐driven development strategy (IDDS), to propose a suitable localized theory. It also suggests specific actions to break the post‐effects dilemma with the support of this theory. Based on the innovation‐driven survey data of provincial SOEs in Gansu Province, this study adopts grounded theory to conduct exploratory research. This paper constructs a behavior process model of “pre‐motivation, innovation path, and post‐effects dilemma” to drive SOE's innovation and expounds on the incidence relation among the three. The results show that the external administrative force and institutional mechanism drive have both indirect and direct impacts on the innovation path choice of SOEs. The endogenous drive is distorted by external administrative force and institutional mechanism drive, leading to the limited innovation path choice and post‐effects dilemma. This paper puts forward the theory of “Attribute Imbalance–Weakened Autonomy–Sluggish Innovation” and explains why it is sometimes difficult to implement the IDDS of SOEs. However, there are some regional limitations in the application scenarios of the theory. Whether it has broader implications need to further explore. Future theoretical testing should be conducted with a sample of SOEs in developed market regions. It is possible to study the differences in the degree of government intervention in SOEs, the ways of intervention, and the impact of these differences on SOEs' balancing dual attribute conflicts.

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The impact of research and development internationalisation on environmental, social and governance: Evidence from emerging market multinational enterprises

Li,

Luo

2024

Bus Strat Env

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People are increasingly aware of the extent to which enterprises either improve or harm social welfare, with a growing trend to use environmental, social and governance (ESG) indicators to evaluate and describe efforts in this area. However, most research has neglected multinational enterprises, especially the significant impact of the radical and leapfrogging internationalisation of emerging market multinational enterprises (EMNEs) on sustainable development. This study discusses ESG in the context of the research and development (R&D) internationalisation of EMNEs and uses microdata from Chinese listed manufacturing enterprises from 2010 to 2020. Employing a propensity score matching (PSM) method and difference‐in‐differences (DID) estimation, this study empirically tests the effect of R&D internationalisation on the ESG performance of Chinese enterprises and their boundary conditions. This study finds that R&D internationalisation positively impacts enterprises' ESG performance through two pathways: improving green innovation and the quality of information disclosure. Furthermore, the study confirms the heterogeneous effects of institutional factors. Institutional deficits between home and host countries, along with the nature of private equity in enterprises, effectively enhance the value of the internationalisation of R&D for EMNEs on ESG performance. This study expands the exploration of the antecedents of ESG in the context of internationalisation, enriches the research on the impact effect and boundary conditions of EMNEs' R&D internationalisation and provides practical insights for EMNEs to enhance their ESG through R&D internationalisation.

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Internationalization of hybrid state-owned enterprises from emerging markets: Institutional investors as enablers

Cited by 11 publications

References 147 publications

The influence of home-country resources and state ownership on subsidiary’s performance: a multilevel perspective

The influence of home-country resources and state ownership on subsidiary’s performance: a multilevel perspective

Attribute imbalances and innovation implementation based on grounded theory: A case of Chinese enterprises in Gansu Province

The impact of research and development internationalisation on environmental, social and governance: Evidence from emerging market multinational enterprises

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