State ownership effect on firms' FDI ownership decisions under institutional pressure: a study of Chinese outward-investing firms

Cui, Lin; Jiang, Fuming

doi:10.1057/jibs.2012.1

Cited by 603 publications

(498 citation statements)

References 79 publications

(146 reference statements)

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“…Because they are appointed by the government and accountable to it, their attitudes reflect the goals and ambitions of politicians, as well as political interests (Mazzolini, 1980). These pioneering studies on SOEs have provided an incomplete explanation for the internationalization of SOEs (Cui & Jiang, 2012).…”

Section: View 1: State Ownership As a Deterrent To Soe Internationalimentioning

confidence: 99%

“…Governments' political agendas have become more concerned with international issues, and SOEs as assets of government institutions (Cui & Jiang, 2012) are becoming much more active in international markets.…”

Section: View 2: Pro-market Reforms As Incentives To Soe Internationamentioning

confidence: 99%

“…al, 2014) and a number of issues regarding these companies remain understudied (CuervoCazurra et al, 2014). Additionally, a limited number of previous studies have examined state ownership and internationalization decisions, and most of them focused on OFDIs by Chinese SOEs (Cui & Jiang, 2012;Ramasamy et al, 2012;Li, Sun, & Liu, 2006).…”

Section: View 3: Unique Aspects Of Governments As Owners In Soes' Intmentioning

confidence: 99%

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Internationalization of State-Owned Enterprises Through Foreign Direct Investment

Cahen

2015

Rev. adm. empres.

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Professor at Centro Universitário da FEI, Programa de Pós-Graduação -São Paulo, SP -Brazil RAE-Revista de Administração de Empresas | FGV/EAESP ARTICLES ABSTRACTState-owned enterprises (SOEs) are created to focus on domestic needs, and yet recent evidence points to increasing outward foreign direct investment by SOEs. Existing International Business (IB) theories focus on efficiency-based motives f o r internationalization; therefore, they do not f u lly ca pture SO Es' internalization dynamics, which are driven largely by political factors and social welfare considerations. We integrate public management and IB theories to develop propositions that combine these questions: why SOEs internationalize; what are their motivations; and what are the main managerial outcomes of SOEs' internationalization. Our findings suggest that SOEs display little hesitancy in entering international markets, and that SOE international expansion is not contradictory with the goals of state-ownership if the purpose is to adjust the company to changing institutional environments both in the domestic and international markets. Our propositions about SOE internationalization are based on an in-depth case study of the outward foreign direct investment conducted by Brazil's Petrobras over the past three decades. KEYWORDS | State-owned enterprises, internationalization, emerging markets, efficiency-based international business theories, socio-political-based public management theory. RESUMO Empresas estatais são criadas para se concentrarem em necessidades domésticas, no entanto evidências apontam para o crescimento do investimento estrangeiro direto no exterior por empresas estatais. As teorias existentes no campo de negócios internacionais focalizam motivos para internacionalização com base em eficiência, p ortanto n ão c aptam p lenamente a s d inâmicas d a i nternacionalização d as e mpresas e statais. Integramos a teoria dos campos de administração pública e negócios internacionais para desenvolver proposições que combinem as seguintes questões: por que empresas estatais se internacionalizam, quais são as motivações dessas empresas e quais as principais consequências gerenciais de sua internacionalização. Nossos achados sugerem que as empresas estatais demonstram pouca hesitação para entrar em mercados internacionais e que sua expansão internacional não é contraditória com os objetivos da propriedade estatal, se o propósito é ajustar a empresa a ambientes institucionais em transformação tanto nos mercados domésticos quanto nos internacionais. Nossas proposições sobre a internacionalização de empresas estatais baseiam-se em um estudo de caso aprofundado do investimento estrangeiro direto no exterior, conduzido pela estatal brasileira Petrobras nas últimas três décadas. PALAVRAS-CHAVE | Empresas estatais, internacionalização, mercados emergentes, teorias de negócios internacionais com base em eficiência, teorias de administração pública com base sociopolítica. RESUMEN Las empresas de propiedad del estado (EPE) se crean para satisfacer...

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Section: View 1: State Ownership As a Deterrent To Soe Internationalimentioning

confidence: 99%

Section: View 2: Pro-market Reforms As Incentives To Soe Internationamentioning

confidence: 99%

Section: View 3: Unique Aspects Of Governments As Owners In Soes' Intmentioning

confidence: 99%

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Internationalization of State-Owned Enterprises Through Foreign Direct Investment

Cahen

2015

Rev. adm. empres.

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“…While state ownership in a JV to exploit a natural resource might be necessary in order to pair country needs with the firm's strategies (Cui & Jiang, 2012;Amihud & Lev, 1999), it is certainly a factor for managing better host country uncertainties and risks (Amighini, Rabellotti, & Sanfilippo, 2012). In a study related to performance of Chinese MNEs that invest outside China, Cui and Jiang (2012) found that state ownership creates institutional pressures on firms to adopt a specific ownership structure, thus, performance does not necessarily benefit the most efficient business organization. Political objectives dominate the firm's actions, and while managers interact with owners seeking to minimize their impact, it results in increased costs (Shleifer & Vishny, 1994).…”

Section: State Ownershipmentioning

confidence: 99%

Determinants of MNEs' Natural Resources Endowments on Performance: An Analytical Model

Davila¹,

Sampath²

2018

IBR

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Drawing on the resource-based view and dynamic capabilities' perspectives of the firm, we present a comprehensive analytical model of the key determinants of natural resources endowments (NREs) on the performance of multinational enterprises (MNEs). We also propose four moderators that influence the NRE-performance relationship: private ownership, state ownership, financial resources availability, and research and development efforts. The model makes clear how the various determinants of the NRE-performance relationship impacts international business. The model is designed to motivate empirical research on this topic. Implications to various stakeholders flowing from the proposed model are also discussed.

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“…190-208, Apr./June 2015 www.anpad.org.br/bar enterprise tends to be seen not only as a business organization, but also as a political actor. Thus, the firm may be subject to stricter criteria and controls, encouraging the formation of joint ventures with local partners, in order to legitimize its local operations (Cui & Jiang, 2012). Thus,…”

Section: H4mentioning

confidence: 99%

Brazilian Multinationals' Ownership Mode: The Influence of Institutional Factors and Firm Characteristics

Ávila

Rocha

Silva

2015

BAR, Braz. Adm. Rev.

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This work investigates whether host countries institutional factors and firm characteristics can help the understanding of Brazilian multinationals' choices of ownership mode for their foreign direct investments (FDI). Brazil is a privileged locus for research on emerging market multinationals (EMNEs), given its growing stock of outward FDI. The paper contributes to a better understanding of the international strategic choices of EMNEs. First, the phenomenon under study is examined using the theoretical lenses of institutionalism. Second, the study looks at the relationship between state support and choice of ownership mode, a new issue in the area of international business. Third, differences between the decisions taken by manufacturing and service EMNEs are also examined. Fourth, the study focuses on an emerging country, Brazil. The quality of the regulatory environment of the host country, and differences in beliefs, cultural identity and management practices between the host country and the country of origin are factors of the institutional environment significantly related to the choice of ownership mode by Brazilian EMNEs. As to firm characteristics, our results show that state support favors the choice of joint ventures, and that service EMNEs also significantly prefer joint ventures, when compared to manufacturing firms. The findings also support the view that EMNEs are less sensitive to institutional weaknesses in host countries.

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State ownership effect on firms' FDI ownership decisions under institutional pressure: a study of Chinese outward-investing firms

Cited by 603 publications

References 79 publications

Internationalization of State-Owned Enterprises Through Foreign Direct Investment

Internationalization of State-Owned Enterprises Through Foreign Direct Investment

Determinants of MNEs' Natural Resources Endowments on Performance: An Analytical Model

Brazilian Multinationals' Ownership Mode: The Influence of Institutional Factors and Firm Characteristics

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