Governments as Owners: State-Owned Multinational Companies

Cuervo-Cazurra, A. Inkpen, A., Musacchio, A. and Ramaswamy, K. 2014. Governments as owners: State-owned multinational companies. Journal of International Business Studies, 45: 919-942.

25 Pages Posted: 27 Dec 2018

See all articles by Alvaro Cuervo-Cazurra

Alvaro Cuervo-Cazurra

Northeastern University - Department of International Business and Strategy

Andrew C. Inkpen

Thunderbird School of Management

Aldo Musacchio

Brandeis University- International Business School; National Bureau of Economic Research

Kannan Ramaswamy

Thunderbird School of Global Management

Date Written: May 16, 2014

Abstract

We explain how the analysis of state-owned multinational companies (SOMNCs) can help extend the literature in two ways. First, we cross-fertilize the international business (IB) and state-owned enterprise (SOE) literatures in their analysis of foreign investment behavior and introduce two arguments: the extraterritoriality argument, which helps explain how the multinational company (MNC) dimension of SOMNCs extends the state-owned enterprise (SOE) literature, and the non-business internationalization argument, which helps explain how the SOE dimension of SOMNCs can extend the IB literature. Second, we analyze how the study of SOMNCs can help develop arguments that extend five theories of firm behavior: the triple agency conflict argument in agency theory, the owner risk argument in transaction costs economics, the advantage and disadvantage of ownership argument in the resource-based view, the power escape argument in resource dependence theory, and the illegitimate ownership argument in neo-institutional theory.

Keywords: State ownership, multinational companies, firm objectives, internationalization

JEL Classification: F23, M16, M21

Suggested Citation

Cuervo-Cazurra, Alvaro and Inkpen, Andrew and Musacchio, Aldo and Ramaswamy, Kannan, Governments as Owners: State-Owned Multinational Companies (May 16, 2014). Cuervo-Cazurra, A. Inkpen, A., Musacchio, A. and Ramaswamy, K. 2014. Governments as owners: State-owned multinational companies. Journal of International Business Studies, 45: 919-942.. Available at SSRN: https://ssrn.com/abstract=3298412

Alvaro Cuervo-Cazurra (Contact Author)

Northeastern University - Department of International Business and Strategy ( email )

D'Amore-McKim School of Business
313 Hayden Hall, 360 Huntington Avenue
Boston, MA 02115
United States
16173736568 (Phone)
16173738628 (Fax)

HOME PAGE: http://cuervo-cazurra.com

Andrew Inkpen

Thunderbird School of Management ( email )

15249 N 59th Ave.
Glendale, AZ 85306
United States

Aldo Musacchio

Brandeis University- International Business School ( email )

415 South Street MC 32
Waltham, MA 02454-9110
United States

National Bureau of Economic Research ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

HOME PAGE: http://www.nber.org/people/aldo_musacchio

Kannan Ramaswamy

Thunderbird School of Global Management

Glendale, AZ 85306
United States

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