Varieties of capitalism and the internationalization of state-owned enterprises

Abstract

This article sheds light on how the internationalization of state-owned enterprises is influenced by the state involvement in ownership and by the home country's institutional settings. Integrating international business literature with the debate on the varieties of capitalism, we contend that state-dominated enterprises internationalize more (less) than privately-owned enterprises in coordinated (liberal) market economies, whereas they exhibit an inconstant behavior in state-influenced market economies. Our analysis on a sample of enterprises pertaining to twenty OECD countries supports our hypotheses. This article adds to studies on the influence of institutions on firms' internationalization and has implications for both managers and policy-makers.

Is managerial entrenchment always bad and corporate social responsibility always good? A cross‐national examination of their combined influence on shareholder value

“…The countries represented in our sample account for 87% of the World GDP in 2011. In accordance with our theoretical framework, countries were classified into LMEs and CMEs following the framework of Hall and Soskice () and its subsequent refinements for assigning countries with ambiguous systems to the two types of capitalism (e.g., Ahrens, Schweickert, & Zenker, ; Mariotti & Marzano, ). This latter case refers to European state‐led market economies such as France, Greece, Italy, Portugal, and Spain, which have been classified as CMEs because of their closeness to this configuration (Hall & Gingerich, ; Kang & Moon, ).…”

Relational ownership, institutional context, and internationalization of state‐owned enterprises: When and how are multinational co‐owners a plus?

“…The role of governments as controlling owners has been already investigated through the two opposite LoS and GaS lenses (Mariotti & Marzano, 2019).…”

The structural reshaping of globalization: Implications for strategic sectors, profiting from innovation, and the multinational enterprise

“…Even with the end of the Cold War and the establishment of the World Trade Organization (WTO) in 1995, some IB scholars continued to emphasize heterogeneity among market-based economies leading to useful distinctions amongst 'varieties of capitalism' (VoC) (e.g., Jackson & Deeg, 2008Judge, Fainschmidt, & Lee Brown III, 2014;Mariotti & Marzano, 2019). The VoC approach implies that institutional features and complementarities along a particular spectrum either promote or constrain (and certainly affect the form of) MNEs' strategies, governance, innovation, and dispersion of value chain activities.…”