The Differential Effects of Minority State Ownership Types on the Internationalization of Emerging Market Multinationals from Democratic States

Arreola, Fernanda; Bandeira-de-Mello, Rodrigo

doi:10.1007/s11575-018-0352-4

Cited by 17 publications

(10 citation statements)

References 65 publications

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“…Our findings consistently indicate that EMNEs' international expansion increases the need for home country government support by the state-owned loans. This result is understandable considering that capital constraints have been one of the central obstacles for EMNE international expansion projects (Arreola and Bandeira-de-Mello, 2018;Bazuchi et al, 2013;Finchelstein, 2017;Pinto et al, 2017).…”

Section: Discussion and Final Considerationsmentioning

confidence: 79%

“…We did this for two main reasons. First, capital constraints have been one of the central obstacles for EMNE international expansion projects (Arreola and Bandeira-de-Mello, 2018; Finchelstein, 2017; Pinto et al , 2017). Second, there is an intense presence of voids in Brazil’s capital and financial markets, and the bank can be influenced by political actors and firms (Claessens et al , 2008; Lazzarini et al , 2015; Monticelli et al , 2018).…”

Section: Analysis and Resultsmentioning

confidence: 99%

“…Capital constraints, for instance, have been one of the central obstacles for EMNE international expansion projects. Unlike their counterparts from developed markets, EMNEs have limited and costly financial sources; there are numerous institutional voids in their financial and capital markets that limit EMNEs’ access to financial resources with attractive conditions (Arreola and Bandeira-de-Mello, 2018; Bailey and Li, 2015; Finchelstein, 2017; Kim and Song, 2017; Pinto et al , 2017; Wu and Chen, 2014). However, in state-owned banks, the government directly controls bank assets and credit operations; these banks usually have subsidies and different conditions (such as a reduced cost of capital, lower interest rates and longer debt maturities).…”

Section: Literature Review and Theory Developmentmentioning

confidence: 99%

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Feeling the squeeze: EMNEs’ international expansion as a driver of nonmarket political strategy at home

da Silva,

Marcon,

Parente

et al. 2023

EBR

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Purpose The purpose of this study is to investigate the effect of international expansion of emerging markets multinationals (EMNEs) on the home country nonmarket political strategy and why some EMNEs intensify this political tie more than others. Design/methodology/approach We test our theoretical framework using longitudinal data, with 16 years of observations, in Multilatinas and state loans from Brazil, one of the main outward foreign direct investment (OFDI) players in the world and the OFDI leader in Latin America. Findings Theoretically grounded on the institution-based view of strategy, it can be postulated that international expansion is a driver of home country nonmarket political strategy. It can also be hypothesized that political tie intensity is affected by the capacity of EMNEs to deal with international expansion issues without having to depend on relationship with homes country nonmarket political actors. The results provide support for the hypotheses presented. Originality/value This paper contributes to the EMNE internationalization literature by extending the understanding of the underlying motivations and forces shaping the home country nonmarket political strategy of multinationals from emerging markets and, thus, helping understand why some EMNEs tend to be more politically active than others. Likewise, the study contributes to advancing understanding regarding the home country strategic responses adopted by Multilatinas and the forces behind the nonmarket political strategies they employ in their international expansions, especially during turbulent times.

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Section: Discussion and Final Considerationsmentioning

confidence: 79%

Section: Analysis and Resultsmentioning

confidence: 99%

Section: Literature Review and Theory Developmentmentioning

confidence: 99%

See 1 more Smart Citation

Feeling the squeeze: EMNEs’ international expansion as a driver of nonmarket political strategy at home

da Silva,

Marcon,

Parente

et al. 2023

EBR

View full text Add to dashboard Cite

show abstract

“…Following from above, since firm governance influences international behavior [ 88 ] and there are different governance regimes that affect State-owned firms [ 66 ], while strict corporate governance requirements negate state ownership [ 89 ]; therefore, because our sample consists of listed firms, both private and State-owned firms would be subject to the same governance requirements. In any case, Estrin et al [ 8 ] posit that listed State-owned enterprises are, in fact, Hybrid firms, and they may be closer in outlook to privately owned firms than to non-listed State-owned enterprises.…”

Section: Discussionmentioning

confidence: 99%

The degree of internationalization of Chinese Multinationals along the belt and road initiative countries

2020

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This study assesses the degree of internationalization of Chinese firms along the Belt and Road initiative countries. Most of the extant studies of the Belt and Road initiative have been qualitative, and where there have been quantitative studies, they have usually been at the aggregate level, and only a handful have used firm-level data to study initiative. Using a composite measure of the degree of internationalization, DOI BRI , that composed of variables capturing the performance, structural and attitudinal dimensions of internationalization, comparative analysis of State-owned enterprises and privately owned enterprises turned up counter-intuitive results. Firstly, given that state ownership could be positively associated with the degree of internationalization of firms and because of the significance of the Belt and Road initiative, we expected the State-owned enterprises to dominate the DOI BRI rankings. We assessed the firms, and contrary to expectations, privately owned firms had a higher average degree of internationalization. Furthermore, we expected both state-owned enterprises and privately-owned enterprises to have similar levels of psychic dispersion. However, state-owned enterprises were more psychically dispersed. Suggesting that along the belt and road countries, the advantages of state ownership of Chinese multinationals may be attenuated.

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“…There is increasing empirical evidence that these two modalities of state ownership generate effects on SOEs’ strategic behavior (Musacchio et al, 2015). In particular, Arreola and Bandeira-de-Mello (2018) and Kalasin, Cuervo-Cazurra, and Ramamurti (2020) show how different degrees of state ownership affect SOEs’ internationalization. According to Inoué and colleagues (2013), varying degrees of state ownership translate into different degrees of firm-level performance.…”

Section: The Determinants Of Soe Tmts’ Iwmentioning

confidence: 99%

State-Owned Enterprises as Institutional Actors: A Hybrid Historical Institutionalist and Institutional Work Framework

et al. 2021

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Although state-owned enterprises (SOEs) are recognized as important economic actors, the literature to date has assumed close state control over SOEs and, therefore, their passive stance towards institutions. Drawing on the institutional work and historical institutionalism literatures, we challenge this view. We develop a multilevel framework of SOE top management teams’ (TMTs’) embedded agency, spanning the national macro-institutional level, the meso-level of regimes of state-SOE relations, and sector-specific institutions. We then derive propositions regarding the factors across these multiple levels that shape SOE TMTs’ motivation, resources, and scope for institutional work. This framework allows us to explain the leeway for and likelihood of SOE TMTs’ engagement in institutional work across institutional contexts.

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The Differential Effects of Minority State Ownership Types on the Internationalization of Emerging Market Multinationals from Democratic States

Cited by 17 publications

References 65 publications

Feeling the squeeze: EMNEs’ international expansion as a driver of nonmarket political strategy at home

Feeling the squeeze: EMNEs’ international expansion as a driver of nonmarket political strategy at home

The degree of internationalization of Chinese Multinationals along the belt and road initiative countries

State-Owned Enterprises as Institutional Actors: A Hybrid Historical Institutionalist and Institutional Work Framework

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