Why State Corporations in Developing Countries Have Failed to Attract Foreign Investment

Abstract

This article examines the behavioural and organisational reasons why the investment promotion materials of state‐owned enterprises in some developing countries are very poor as marketing literature. It gives examples selected from nine LDCs′ publications to illustrate specific ways in which they are inappropriate: by focusing on the enterprise′s own concerns rather than the concerns of potential investors; by acting as a rule enforcer rather than a facilitator for foreign companies; by addressing the wrong audience or learning the wrong lessons from past experiences, etc. The appendix gives suggestions for how the same contents could be presented in more dynamic and attractive language.

Market orientation and organizational performance: A comparison of industrial versus consumer companies in mainland China using market orientation scale (MARKOR)

“…More specifically, empirical studies conducted thus far have principally focused on businesses and industries located in the United Sates and Western European countries (Horng, 1998). One study by Stoever (1989) suggested that foreign direct investment in developing countries lagged because of the inward market orientation of state-owned enterprises investment promotion materials. While this study presents a pessimistic point of view regarding market orientation, another study by Kaynak and Arbelaez (2000) provided a very positive perspective about market orientation in a Latin American developing country.…”

An assessment of Colombian managers' perceptions of international strategic alliances

“…The response of multinational firms to invitations by LDCs to enter into joint ventures with state-owned enterprises (SOEs) has been poor because of the characteristic inward marketing orientation of SOEs (Stoever, 1989). Some countries, however, were particularly popular for US firms interested in forming joint ventures.…”