| THE COEVOLUTION OF STATE-OWNED ENTERPRISES’ INTERNATIONALIZATION AND STATE OWNERSHIP REDUCTION |
Received:October 10, 2017 Revised:October 10, 2017 |
Key Words: state-owned enterprises, internationalization, state ownership reduction, coevolution |
| Author Name | Affiliation | | Joyce C. Wang* | University of Texas at Dallas | | Mike W. Peng | University of Texas at Dallas |
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Abstract: |
| How will state-owned enterprises (SOEs) evolve after they internationalize? Emphasizing the liabilities of state ownership in foreign markets, we posit that SOEs may reduce state ownership when facing uncertainties abroad. A decrease in state ownership in turn encourages SOEs to further their international pursuit, potentially due to (1) gradually improved acceptance from foreign constituencies, and (2) slowly enhanced managerial capability and motivation to seek for autonomy and private benefits. The coevolution between SOEs’ internationalization and state ownership reduction is tested against a sample of Chinese SOEs between 2001 and 2011. Results support our proposed process of a simultaneous determination. |
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