Ownership types, institutions, and the internationalization of emerging economy new ventures: evidence from Africa

Molina-Sieiro, Gonzalo; Galdino, Katia M.; Holmes, R. Michael

doi:10.1007/s11187-022-00650-5

Cited by 5 publications

(4 citation statements)

References 129 publications

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“…Wang et al (2012a) investigated the function of the government in the internationalization of Chinese companies and found that state ownership and technological resources influence overseas investment. Similarly, Molina-Sieiro et al (2023) reported that state ownership capital is positive for the internationalization of new ventures from Africa. Hennart et al (2017) concluded that the higher the government ownership in a Brazilian firm, the higher its degree of internationalization.…”

Section: Home-country Resources and State Ownershipmentioning

confidence: 98%

“…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).…”

Section: Introductionmentioning

confidence: 99%

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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: Home-country Resources and State Ownershipmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 99%

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

show abstract

“…This visualization illustrates that most of the research focuses that become references in this study discuss company performance, R&D investment/investment strategy, and ownership structure. In addition, the results of the research mapping visualization by year show that research on company performance, R&D investment/ investment strategy, and ownership structure is research that is still popular today (green circle from 2020 to currently) (Likitwongkajon & Vithessonthi, 2020;Wu et al, 2023;Horobet et al, 2023;Habtewold, 2023;Molina-Sieiro et al, 2023).…”

Section: Industrial Organization (Io) Theorymentioning

confidence: 99%

Investment Strategy and Future Performance: The Moderating Effect of Ownership

Susanto,

Soewarno,

Tjahjadi

2024

Business: Theory and Practice

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This study aims to investigate the Role of ownership structure on the Effect of investment strategy on future performance. The research focuses on ownership that compares foreign and domestic ownership structures. The research sample is a non-financial company in ASEAN countries. Multiple regression was performed to test the hypothesis using a financial dataset from 795 firm years of observation of non-financial companies in ASEAN. Our results show that foreign and domestic owners negatively affect the relationship between investment strategy and the future performance. The study’s results indicate that foreign and domestic ownership have no significant difference as a supporting factor for implementing the investment strategy in improving the company’s future performance. Our findings confirm the IO theory about implementing an investment strategy that affects future performance even though it impacts decreasing financial performance because companies need more time to see the impact of an investment strategy.

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“…Thus, institutions shape the operation of factor markets. Prior research suggests that countries with higher-quality institutions tend to have a stronger rule of law, less burdensome regulations and more effective, stable and accountable governments (Molina-Sieiro et al, in press).…”

Section: Literature Reviewmentioning

confidence: 99%

Factor markets, institutional quality and firm formalisation: The contingent effect of economic conditions at the founding stage

Galdino

Molina-Sieiro

Lamont

et al. 2022

International Small Business Journal: Researching Entrepreneurs

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The informal economy makes an important contribution to economic activity but knowledge about the country-level conditions that influence an informal firm’s willingness to formalise is limited. This article integrates insights from institutional theory and the imprinting hypothesis to explain how factor markets and institutional quality affect the likelihood that informal firms formalise over time, as well as how these effects are contingent on economic conditions at the founding stage. Using data from the World Bank Enterprise Surveys comprising of 8005 observations from 2477 firms in 73 countries, the results suggest that better factor markets and institutional quality increase the likelihood of formalisation and these relationships are strengthened by favourable economic conditions at the founding stage. The low correlation between factor markets and institutional quality supports the importance of separating these dimensions, while the moderating effect of economic conditions at the founding stage supports the importance of imprinting.

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Ownership types, institutions, and the internationalization of emerging economy new ventures: evidence from Africa

Cited by 5 publications

References 129 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

Investment Strategy and Future Performance: The Moderating Effect of Ownership

Factor markets, institutional quality and firm formalisation: The contingent effect of economic conditions at the founding stage

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