Do State-Owners Facilitate or Constrain Corporate Strategies of Internationalization? The Role of Institutions

Bo Bernhard Nielsen, Saul Estrin, Klaus Meyer, Sabina Nielsen

    Research output: Chapter in Book/Report/Conference proceedingConference abstract in proceedingsResearchpeer-review


    National institutions shape the ability of civil society and minority shareholders to monitor and influence insider decision-makers in state owned enterprises (SOEs), and thereby SOEs’ strategies of internationalization. We argue that if such controls are weak, state owners choose self-aggrandizement over profit maximization and
    these tend to be predominantly domestic.Yet, with more effective controls, SOEs choices will be more similar to private owned firms with respect to internationalization. We conceptualize the institutions enabling control over firms by developing Williamson’s hierarchy of institutions from informal via formal to governance. Based on a
    matched sample of 153 majority state owned and 153 majority privately owned firms from 40 different countries, we confirm our hypotheses. Our findings suggest that if home country institutions enable effective control, the internationalization strategies of SOEs and POEs converge.
    Original languageEnglish
    Title of host publicationProceedings of the 57th Annual Meeting of the Academy of International Business : Global Networks: Organizations and People
    EditorsRam Mudambi, Tunga Kiyak
    Number of pages1
    Place of PublicationEast Lansing, MI
    PublisherAcademy of International Business
    Publication date2015
    Publication statusPublished - 2015
    EventAIB 2015 Annual Meeting: Global Networks:Organizations and People - Indian Institute of Management, Bangalore (IIMB), Bengaluru, India
    Duration: 27 Jun 201530 Jun 2015
    Conference number: 57


    ConferenceAIB 2015 Annual Meeting
    LocationIndian Institute of Management, Bangalore (IIMB)
    Internet address
    SeriesAcademy of International Business. Annual Meeting. Proceedings

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