Does state ownership really matter? The dynamic alignment of China's resource environment and firm internationalization strategies

Monica Ren, Stephan Manning*, Stanislav Vavilov

*Corresponding author for this work

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

Recent research suggests that unequal access to home country institutional resources affects firm internationalization strategies. We add to this debate, based on an analysis of state-owned (SOEs)and non-state-owned (NSOEs)Chinese mining firms, by developing a more dynamic and multi-layered understanding of this interplay. We find that home institutional support can be ownership-based or performance-based, whereby the former benefits SOEs and the latter favors high-performing NSOEs. Combined, these support structures serve as institutional control mechanisms in promoting competition, performance and loyalty to national policies. In addition, they establish a permanent link between firm- and home country-specific assets and incentivize firms to develop dynamic resource access capabilities at home and abroad. Our findings inform our understanding of the firms-institutions nexus and Chinese foreign direct investment dynamics, especially in industries of strategic importance to the state.

Original languageEnglish
Article number100667
Pages (from-to)1-17
Number of pages17
JournalJournal of International Management
Volume25
Issue number3
DOIs
Publication statusPublished - Sep 2019

Keywords

  • China
  • Institutions
  • Internationalization
  • Mining
  • Ownership

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