A Geopolitical Perspective into the Opposition to Globalizing State-Owned Enterprises in Target States

Forthcoming in Global Strategy Journal’s Special Issue on Location Avantages

41 Pages Posted: 11 Jul 2015

See all articles by Wei Shi

Wei Shi

University of Miami; University of Miami - Department of Management

Robert Hoskisson

Rice University

Yan Zhang

Rice University - Jesse H. Jones Graduate School of Business

Date Written: June 4, 2015

Abstract

Existing studies on multinational enterprise (MNE) location strategy assume that MNEs are focused on economic not political objectives. The emergence of globalizing state-owned enterprises (SOEs) requires us to revisit such an assumption because SOEs symbolize national interests of their home states and are perceived as political entities by target states. This paper provides a geopolitical perspective into how geographic distance, religious similarity, and political regime similarity between two nation states, as well as resource complementarity between globalizing SOEs and target states, explain the level of opposition that globalizing SOEs face in target states, which in turn affect their abilities to exploit locational advantages globally. We also investigate how the salience of nationalist politics moderates the influence of these geopolitical factors on the level of opposition that globalizing SOEs face. Although our geopolitical model focuses on globalizing SOEs, this model may shed new light on understanding the role of geopolitics in affecting private MNEs’ location choices.

Keywords: Location strategy, state-owned enterprises, geopolitics, multinational enterprises, international business, international politics

JEL Classification: F20

Suggested Citation

Shi, Wei and Shi, Wei and Hoskisson, Robert and Zhang, Yan Anthea, A Geopolitical Perspective into the Opposition to Globalizing State-Owned Enterprises in Target States (June 4, 2015). Forthcoming in Global Strategy Journal’s Special Issue on Location Avantages, Available at SSRN: https://ssrn.com/abstract=2629565

Wei Shi (Contact Author)

University of Miami ( email )

FL FL
United States

University of Miami - Department of Management ( email )

United States

Robert Hoskisson

Rice University ( email )

6100 South Main Street
Houston, TX 77005-1892
United States

Yan Anthea Zhang

Rice University - Jesse H. Jones Graduate School of Business ( email )

6100 South Main Street
P.O. Box 1892
Houston, TX 77005-1892
United States

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