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

Monica Ren, Stephan Manning, Stanislav Vavilov

Research output: Contribution to journalArticleResearchpeer-review

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.

LanguageEnglish
Article number100667
Number of pages17
JournalJournal of International Management
Volume25
Issue number3
DOIs
Publication statusPublished - Sep 2019

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Alignment
State ownership
Resources
Internationalization strategy
China
Home country
Assets
Loyalty
Institutional support
Control mechanism
Ownership
Industry
Foreign direct investment

Keywords

  • China
  • Institutions
  • Internationalization
  • Mining
  • Ownership

Cite this

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Does state ownership really matter? The dynamic alignment of China's resource environment and firm internationalization strategies. / Ren, Monica; Manning, Stephan; Vavilov, Stanislav.

In: Journal of International Management, Vol. 25, No. 3, 100667, 09.2019.

Research output: Contribution to journalArticleResearchpeer-review

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