Corporate Governance of a Scandinavian MNE in an emerging market: Case study of Statoil ASA in Venezuela

Abstract

Multinational enterprises seek opportunities in areas with a potential great return on investments and future growth. These areas are in some cases emerging markets that are rapid growing and uses economic liberalization as a primary engine for growth. However there are several challenges when entering an emerging market, one of them is the corporate governance issue. In this context I aim at investigating the presence of Statoil ASA in Venezuela in a corporate governance view, analyzing the different aspects in the joint venture Petrocedeño S.A with Petróleos de Venezuela, S.A (PDVSA). The thesis is conducted in an exploratory approach, using theoretical tools such as agency theory, institutional theory and resource based view. By using these tools, combined with an overview of existing publications on corporate governance, it allows me to frame the case at hand in a theoretical perspective Furthermore I use corporate governance framework such as the OECD principles of good corporate governance, national corporate governance codexes for the countries at stake, and reports made by recognized institutions to provide an overview of the differences the companies and countries may have on corporate governance. Finally I draw conclusions regarding my findings and make recommendations regarding Statoil’s further involvement in Venezuela.