Governments as owners

State-owned multinational companies

Alvaro Cuervo Cazurra, Andrew Inkpen, Aldo Musacchio, Kannan Ramaswamy

    Research output: Contribution to journalReview article

    136 Citations (Scopus)

    Abstract

    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.

    Original languageEnglish (US)
    Pages (from-to)919-942
    Number of pages24
    JournalJournal of International Business Studies
    Volume45
    Issue number8
    DOIs
    StatePublished - Oct 25 2014

    Fingerprint

    Industry
    Government
    Owners
    Multinational companies
    Economics
    Costs
    International business
    Ownership

    Keywords

    • Firm objectives
    • Internationalization
    • Multinational corporations (MNCs) and enterprises (MNEs)
    • Resource dependency
    • State ownership
    • Transaction cost economics or transaction cost analysis
    • Transaction cost theory

    ASJC Scopus subject areas

    • Business and International Management
    • Business, Management and Accounting(all)
    • Economics and Econometrics
    • Management of Technology and Innovation
    • Strategy and Management

    Cite this

    Governments as owners : State-owned multinational companies. / Cazurra, Alvaro Cuervo; Inkpen, Andrew; Musacchio, Aldo; Ramaswamy, Kannan.

    In: Journal of International Business Studies, Vol. 45, No. 8, 25.10.2014, p. 919-942.

    Research output: Contribution to journalReview article

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