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The Renaissance of State‐Owned Multinationals
Author(s) -
He Xiaoming,
Eden Lorraine,
Hitt Michael A.
Publication year - 2015
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.21711
Subject(s) - multinational corporation , the renaissance , autonomy , corporate governance , business , state (computer science) , dual (grammatical number) , industrial organization , accounting , finance , political science , law , art , art history , literature , algorithm , computer science
State‐owned multinational enterprises ( SMNEs ) have significant levels of state ownership and value‐adding activities outside their home countries. SMNEs are undergoing a renaissance, highlighted by their numbers in the global economy and their heightened importance; as a result, they are gaining new attention in the academic literature and in the popular press. This work discusses the reasons for this renaissance and examines the challenges involved in managing SMNEs . SMNEs represent a hybrid organizational form with the dual characteristics of both the state‐owned enterprise ( SOE ) and the multinational enterprise ( MNE ). When compared with private MNEs , SMNEs are generally less profit oriented and have a more complex corporate governance structure. They have less autonomy to establish their strategies, but also experience a lower level of uncertainty in their external environment. As a result, SMNEs have more difficulty than private MNEs in developing strategies and making organizational changes. Our study concludes with recommendations to managers for improving SMNE performance. © 2015 Wiley Periodicals, Inc.