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

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

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 proceeding › Conference abstract in proceedings › Research › peer-review

Abstract

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 language	English
Title of host publication	Proceedings of the 57th Annual Meeting of the Academy of International Business : Global Networks: Organizations and People
Editors	Ram Mudambi, Tunga Kiyak
Number of pages	1
Place of Publication	East Lansing, MI
Publisher	Academy of International Business
Publication date	2015
Pages	166
Publication status	Published - 2015
Event	AIB 2015 Annual Meeting: Global Networks:Organizations and People - Indian Institute of Management, Bangalore (IIMB), Bengaluru, India Duration: 27 Jun 2015 → 30 Jun 2015 Conference number: 57 https://aib.msu.edu/events/2015/

Conference

Conference	AIB 2015 Annual Meeting
Number	57
Location	Indian Institute of Management, Bangalore (IIMB)
Country/Territory	India
City	Bengaluru
Period	27/06/2015 → 30/06/2015
Internet address	https://aib.msu.edu/events/2015/

Series	Academy of International Business. Annual Meeting. Proceedings
Volume	57
ISSN	2078-4430

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Nielsen, B. B., Estrin, S., Meyer, K., & Nielsen, S. (2015). Do State-Owners Facilitate or Constrain Corporate Strategies of Internationalization? The Role of Institutions. In R. Mudambi, & T. Kiyak (Eds.), Proceedings of the 57th Annual Meeting of the Academy of International Business: Global Networks: Organizations and People (pp. 166). Academy of International Business. http://documents.aib.msu.edu/events/2015/AIB2015_Proceedings.pdf

Nielsen, Bo Bernhard ; Estrin, Saul ; Meyer, Klaus et al. / Do State-Owners Facilitate or Constrain Corporate Strategies of Internationalization? The Role of Institutions. Proceedings of the 57th Annual Meeting of the Academy of International Business: Global Networks: Organizations and People. editor / Ram Mudambi ; Tunga Kiyak. East Lansing, MI : Academy of International Business, 2015. pp. 166 (Academy of International Business. Annual Meeting. Proceedings, Vol. 57).

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title = "Do State-Owners Facilitate or Constrain Corporate Strategies of Internationalization?: The Role of Institutions",

abstract = "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{\textquoteright} 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{\textquoteright}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.",

author = "Nielsen, {Bo Bernhard} and Saul Estrin and Klaus Meyer and Sabina Nielsen",

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Nielsen, BB, Estrin, S, Meyer, K & Nielsen, S 2015, Do State-Owners Facilitate or Constrain Corporate Strategies of Internationalization? The Role of Institutions. in R Mudambi & T Kiyak (eds), Proceedings of the 57th Annual Meeting of the Academy of International Business: Global Networks: Organizations and People. Academy of International Business, East Lansing, MI, Academy of International Business. Annual Meeting. Proceedings, vol. 57, pp. 166, AIB 2015 Annual Meeting, Bengaluru, India, 27/06/2015. <http://documents.aib.msu.edu/events/2015/AIB2015_Proceedings.pdf>

Do State-Owners Facilitate or Constrain Corporate Strategies of Internationalization? The Role of Institutions. / Nielsen, Bo Bernhard; Estrin, Saul; Meyer, Klaus et al.
Proceedings of the 57th Annual Meeting of the Academy of International Business: Global Networks: Organizations and People. ed. / Ram Mudambi; Tunga Kiyak. East Lansing, MI: Academy of International Business, 2015. p. 166 (Academy of International Business. Annual Meeting. Proceedings, Vol. 57).

Research output: Chapter in Book/Report/Conference proceeding › Conference abstract in proceedings › Research › peer-review

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AB - 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.

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Nielsen BB, Estrin S, Meyer K, Nielsen S. Do State-Owners Facilitate or Constrain Corporate Strategies of Internationalization? The Role of Institutions. In Mudambi R, Kiyak T, editors, Proceedings of the 57th Annual Meeting of the Academy of International Business: Global Networks: Organizations and People. East Lansing, MI: Academy of International Business. 2015. p. 166. (Academy of International Business. Annual Meeting. Proceedings, Vol. 57).