TY - JOUR
T1 - Governments as owners
T2 - State-owned multinational companies
AU - Cazurra, Alvaro Cuervo
AU - Inkpen, Andrew
AU - Musacchio, Aldo
AU - Ramaswamy, Kannan
N1 - Funding Information:
The authors would like to thank John Cantwell and three anonymous reviewers for useful suggestions for improvement. Cuervo-Cazurra thanks the Walsh Professorship, the Robert Morrison Fellowship and the Center for Emerging Markets at Northeastern University for financial support. Inkpen thanks the Seward Chair in Global Strategy for financial support. Musac-chio thanks the funding from the Division of Research and Faculty Development at Harvard Business School. Ramaswamy thanks the William D. Hacker Chair in Management for financial support. All errors are of the authors.
Publisher Copyright:
© 2014 Academy of International Business All rights reserved.
PY - 2014/10/25
Y1 - 2014/10/25
N2 - The globalization of state-owned multinational companies (SOMNCs) has become an important phenomenon in international business (IB), yet it has received scant attention in the literature. We explain how the analysis of SOMNCs can help advance the literature by extending our understanding of state-owned firms (SOEs) and multinational companies (MNCs) in at least two ways. First, we cross-fertilize the IB and SOEs literatures in their analysis of foreign investment behavior and introduce two arguments: the extraterritoriality argument, which helps explain how the MNC dimension of SOMNCs extends the SOE literature, and the non-business internationalization argument, which helps explain how the SOE dimension of SOMNCs extends the MNC literature. Second, we analyze how the study of SOMNCs can help develop new insights of theories of firm behavior. In this respect, we introduce five arguments: the triple agency conflict argument in agency theory; the owner risk argument in transaction costs economics; the advantage and disadvantage of ownership argument in the resource-based view (RBV); the power escape argument in esource dependence theory; and the illegitimate ownership argument in neoinstitutional theory. After our analysis, we introduce the papers in the special issue that, collectively, reflect diverse and sophisticated research interest in the topic of SOMNCs.
AB - The globalization of state-owned multinational companies (SOMNCs) has become an important phenomenon in international business (IB), yet it has received scant attention in the literature. We explain how the analysis of SOMNCs can help advance the literature by extending our understanding of state-owned firms (SOEs) and multinational companies (MNCs) in at least two ways. First, we cross-fertilize the IB and SOEs literatures in their analysis of foreign investment behavior and introduce two arguments: the extraterritoriality argument, which helps explain how the MNC dimension of SOMNCs extends the SOE literature, and the non-business internationalization argument, which helps explain how the SOE dimension of SOMNCs extends the MNC literature. Second, we analyze how the study of SOMNCs can help develop new insights of theories of firm behavior. In this respect, we introduce five arguments: the triple agency conflict argument in agency theory; the owner risk argument in transaction costs economics; the advantage and disadvantage of ownership argument in the resource-based view (RBV); the power escape argument in esource dependence theory; and the illegitimate ownership argument in neoinstitutional theory. After our analysis, we introduce the papers in the special issue that, collectively, reflect diverse and sophisticated research interest in the topic of SOMNCs.
KW - Firm objectives
KW - Internationalization
KW - Multinational corporations (MNCs) and enterprises (MNEs)
KW - Resource dependency
KW - State ownership
KW - Transaction cost economics or transaction cost analysis
KW - Transaction cost theory
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U2 - 10.1057/jibs.2014.43
DO - 10.1057/jibs.2014.43
M3 - Review article
AN - SCOPUS:84977134508
SN - 0047-2506
VL - 45
SP - 919
EP - 942
JO - Journal of International Business Studies
JF - Journal of International Business Studies
IS - 8
ER -