Rationale of internationalization of China's national oil companies: seeking natural resources, strategic assets or sectoral specialization?

Lai, Hongyi; O’Hara, Sarah L.; Wysoczanska, Karolina

doi:10.1080/13602381.2014.939896

Cited by 20 publications

(9 citation statements)

References 37 publications

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“…Grounded in the exploratory setting and qualitative research guidelines, the study adopted a triangulation approach to support theoretical framework and generalize research findings. For the social sciences literature, triangulation is a technique to generalize research findings to a larger population by garnering data from multiple sources (Yin, 2003; see relevant studies on this approach, Lai et al, 2015;Reddy et al, 2016c;Mazon et al, 2017). While scholars suggested different types of triangulation, we defined our triangulation from the data standpoint.…”

Section: Methodsmentioning

confidence: 99%

“…For instance, SOEs account for higher outward flows in resources sector such as mining, quarrying and petroleum by US $456 billion, then concentric services sector such as transport, storage and communications by US$160 billion, and utilities sector such as electricity, gas and water by US$133 billion. : Peng, 2012;Sun et al, 2012;Anderson and Sutherland, 2015;Lai et al, 2015;Reddy et al, 2016b;Del Bo et al, 2017;Luo et al, 2017;Tavares Lehmann and Lehmann, 2017;Caiazza, 2018).…”

Section: Outward Fdi Projects Undertaken By State-owned Mnes: Industry Portfoliomentioning

confidence: 99%

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Institutionalization to internationalization

Redding

Xie

Tang

2018

IJPSM

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Purpose The purpose of this paper is to examine the most interesting research question of the past decade – What Lures the Bears? Leveraging the public sector management and international business strategy literature, the paper first presents an overview of the transformational dynamics of state-owned enterprises (SOEs) in three major phases – institutionalization, privatization, and corporatization, and internationalization. Then, it analyzes geographic patterns and industry trends of the outward foreign direct investment (FDI) projects announced by SOEs over an eight-year period. Design/methodology/approach Grounded in the exploratory research such as inductive and deductive logic, the study proposes theoretical constructs, and discusses several findings based on the data accessed from highly cited archival sources, such as the UNCTAD FDI stat/WIRs, the World Development Indicators, Doing Business Report, Global Competitiveness Report, the Index of Economic Freedom, the Academic Ranking of World Universities, and the Fortune Global 500. Findings Based on an analysis of global market trends (a sample of over 20 countries and five industries), the study highlights that SOEs from Asia and Europe have been greatly expanded into developed markets, thus to secure natural resources, to acquire strategic assets like technology, and to leverage the developed financial markets and better investment environment. Therefore, SOEs’ outward FDI strategy and overseas performance was driven by institutional transitions, resource security, home market development and government legitimacy may contribute to the competitive advantage of their home country. Practical implications The study offers several implications for the policymakers of the governments in emerging economies and bureaucratic management of SOEs. It recommends that state ownership pattern and bureaucratic system of SOEs need to be reexamined, revised, and corporatized in the changing dynamics of the multinational business environment, thus to secure resources, acquire technological know-how, and compete in home and global markets. Originality/value As a response to academic calls on the globalization, performance and governance mechanisms of SOEs in and out of emerging economies, this paper draws a unique presentation of the transformational dynamics of SOEs – establishment to internationalization.

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Section: Methodsmentioning

confidence: 99%

Section: Outward Fdi Projects Undertaken By State-owned Mnes: Industry Portfoliomentioning

confidence: 99%

Institutionalization to internationalization

Redding

Xie

Tang

2018

IJPSM

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“…There are many developed host countries that have sanctioned specific areas of industries that are restricted to foreign influence and investments due to reason concerning national interest and security. For example, the purchasing of shares by Chinese National Oil Company ("CNOC") in Unocal (Petrusic, 2005); bid for the purchasing of shares by the Gulf states' in companies running American ports (Hanieh, 2016); purchasing of shares by a Chinese state oil company in an Australian company (Lai et al, 2015); and the Rio Tinto bid that was opposed on grounds of national security (Vivoda & G. Graetz, 2017). The notion of 'national security' is used as a valid excuse to avoid FDI in many sensitive sectors such as the defence industries, technology based industries, and coastal shipping.…”

Section: Sovereignty National Interest and Securitymentioning

confidence: 99%

Sovereignty, National Interest and Security in Bilateral Investment Treaties of Malaysia

Hossain

Yeon

Aziz

2020

JIS

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At present, the BITs are playing a significant part in regulating foreign direct investment (FDI) in the host countries and like other members of the World Trade Organisation (WTO) Malaysia have also signed BITs to facilitate trade. Malaysia’s FDI laws and BITs mainly protect foreign investors, however, neither of them has any specific provision on the protection of sovereignty, national interest and security. This paper addresses the question, to what extent are sovereignty, national interest and security protected through BITs during entry of FDI into Malaysia? Using non-doctrinal socio-legal research method, the authors critically analyzed 15 BITs to explore whether they protect the sovereignty, national interest and security of Malaysia. The findings show that the existing Malaysian BITs contain provisions to promote and protect foreign investments but lack specific references to protect sovereignty, national interest and security, therefore, the government should consider these important factors when signing future BITs.

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“…• China: Geely's takeover of Volvo Cars division (see Fang and Chimenson, 2017); Lenovo, Acer, Haier, Founder Technology, Huawei Technologies, ZTE Corporation, BOE Technology, Nanjing Automotive and large-scale state-owned firms, banks, insurance companies and financial services (see Rui and Yip, 2008;Deng, 2009;Duysters et al, 2009;Kothari et al, 2013;Lai et al, 2015;Hung and Tseng, 2017).…”

Section: Successful Cross-border Manda Dealsmentioning

confidence: 99%

Organizational characteristics of cross-border mergers and acquisitions

Redding

Xie

2018

JOCM

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Purpose Given that several publicly announced international merger and acquisition deals have been abandoned in recent years, the purpose of this paper is to present a synthesis of influential articles that examine organizational characteristics of cross-border acquisition transactions. The synthesis is framed through general traits and resources, learning and prior acquisition experience, and top-level management and governance attributes. Specifically, the paper conceptualizes key organizational attributes influencing the propensity of cross-border negotiations, and the most common characteristics and post-deal effects by illustrating several case examples from around the world. Design/methodology/approach Owing to fairness and integrity principles of the literature survey studies, the paper adopts an exploratory review design to present a synthesis of several influential articles published in strategy, international business and corporate finance journals. Since case method and storytelling are the best qualitative approaches to conceptualizing extant theoretical contributions, a number of case examples—successful, delayed and abandoned—from around the world have been discussed by leveraging the case information from archival sources. Findings Drawing on resource-based view, organizational learning, upper echelons and agency theory perspectives, the paper underscores three observations. First, organizational characteristics such as firm age, firm size, ownership structure, slack resources, marketing resources, technological intensity, export intensity and business group affiliation have different impacts on the propensity of publicly announced cross-border deals. Second, firm’s prior acquisition experience and firm’s acquisition experience in the target country have positive or moderating effects on the success of a cross-border merger. Third, top-level management characteristics such as CEO foreign nationality and CEO international career experience, and governance characteristics such as board size, the number of independent directors and directors with overseas experience, have mixed effects on the incidence of cross-border acquisitions. Practical implications The paper puts forth several recommendations for top-level managers participating in cross-border acquisition negotiations, such as learning from peers in the same industry, learning from predecessors in the target country and learning from failure negotiations in the same industry and other industries. Originality/value Nested within the organizational, international business strategy and corporate finance literature, the paper presents a synthesis of influential publications that study organizational characteristics affecting the propensity of cross-border acquisitions. The cases discussed in this paper are unique examples from around the world.

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Rationale of internationalization of China's national oil companies: seeking natural resources, strategic assets or sectoral specialization?

Cited by 20 publications

References 37 publications

Institutionalization to internationalization

Institutionalization to internationalization

Sovereignty, National Interest and Security in Bilateral Investment Treaties of Malaysia

Organizational characteristics of cross-border mergers and acquisitions

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