This chapter sheds light on how the internationalization of state-owned enterprises (SOEs) is jointly influenced by the ownership involvement of the state and other relational investors and by the home country’s institutional setting. It integrates international business literature and insights from the theory of corporate governance into a varieties of capitalism framework. Taking a configurational perspective, the interdependencies that link the SOE internationalization to the joint effects of particular combinations of actors and institutions are analyzed. As a result, it is argued that only a few home country–SOE governance configurations favor the expansion of SOEs abroad: (i) a configuration in which the state is a dominant owner capable of aligning the interests of any other private shareholder and the government is embedded in a proactive institutional context, so as to effectively orchestrate the internationalization process, (ii) a configuration in which, assuming the home country institutions markedly deficient in supporting interventions, relational co-owners are involved in SOE ownership and governance and have commitment, influential power, and competencies to equip the company with an effective strategy and competitive advantages to be exploited abroad. In all other configurations, the international performance of SOEs is worse, being undermined by institutional contexts that favor an inward-looking approach of the state and government, and/or by principal–principal agency problems.

Institutions, Corporate Governance, and Internationalization of State-owned Enterprises in a Varieties of Capitalism Framework / Mariotti, SERGIO GIOVANNI; Marzano, Riccardo. - (2021).

Institutions, Corporate Governance, and Internationalization of State-owned Enterprises in a Varieties of Capitalism Framework

Sergio Mariotti;Riccardo Marzano
2021

Abstract

This chapter sheds light on how the internationalization of state-owned enterprises (SOEs) is jointly influenced by the ownership involvement of the state and other relational investors and by the home country’s institutional setting. It integrates international business literature and insights from the theory of corporate governance into a varieties of capitalism framework. Taking a configurational perspective, the interdependencies that link the SOE internationalization to the joint effects of particular combinations of actors and institutions are analyzed. As a result, it is argued that only a few home country–SOE governance configurations favor the expansion of SOEs abroad: (i) a configuration in which the state is a dominant owner capable of aligning the interests of any other private shareholder and the government is embedded in a proactive institutional context, so as to effectively orchestrate the internationalization process, (ii) a configuration in which, assuming the home country institutions markedly deficient in supporting interventions, relational co-owners are involved in SOE ownership and governance and have commitment, influential power, and competencies to equip the company with an effective strategy and competitive advantages to be exploited abroad. In all other configurations, the international performance of SOEs is worse, being undermined by institutional contexts that favor an inward-looking approach of the state and government, and/or by principal–principal agency problems.
The Multiple Dimensions of Institutional Complexity in International Business Research
Internationalization; state-owned enterprises; varieties of capitalism; relational ownership; multinational enterprises; institutional theory
02 Pubblicazione su volume::02a Capitolo o Articolo
Institutions, Corporate Governance, and Internationalization of State-owned Enterprises in a Varieties of Capitalism Framework / Mariotti, SERGIO GIOVANNI; Marzano, Riccardo. - (2021).
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11573/1508525
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