Abstract:
We critically analyze the literature on state-owned multinationals (SOMNCs) to clarify previous ideas and guide future research. We map prior research into three themes: studies on SOMNCs’ internationalization, comparisons of the internationalization of state-owned and private multinationals, and analyses of how state ownership moderates other relationships. Some of these studies reveal conflicting findings, which we argue are driven by the theory used. We propose that agency theory, resource dependence, and neo-institutional theory highlight the costs of state ownership on internationalization, while economic development, the resource-based view, and institutional economics focus on the benefits. Finally, we outline three relationships that need more research: Relationships internal to SOMNCs and their balance between state and market demands; relationships between SOMNCs and their home government and the influence of the political system; and relationships between home and host country governments and the impact of animosity between countries on SOMNCs.

Keywords:
State-owned multinationals, state-owned enterprises, multinationals, internationalization, governance, international business.

Short Bio:
Alvaro Cuervo-Cazurra (MIT PhD) is Professor of Global Strategy and the Lloyd Mullin Research Fellow at the D'Amore-McKim School of Business at Northeastern University, and the Bualuang Chair at Thammasat University.
In his research, he analyzes three main topics: the internationalization of firms, with a special interest in emerging market multinationals; capability upgrading, particularly technological capabilities; and governance challenges, focusing on corruption in international business.
Professor Cuervo-Cazurra was elected a Fellow of the Academy of International Business Studies in 2016, and received an Honorary Doctorate from Copenhagen Business School in 2019. He has also received a silver medal from Journal of International Business Studies, six best paper awards, the best dissertation award from the Strategy Division of the Academy of Management, eleven best reviewer awards from journals and conferences, and an outstanding service award from the Academy of International Business.
He is co-editor of Global Strategy Journal. He was reviewing editor of Journal of International Business Studies (2010-2016), and served on the Executive Committee of the Academy of Management’s International Management Division (2012-2017) and as Representative-at-Large of the Strategic Management Society’s Global Strategy Group (2006-2008).
He teaches courses on global strategy and sustainability at the undergraduate, masters, executive and PhD levels, and is as an independent consultant on internationalization and global strategy.
For more information, please visit www.cuervo-cazurra.com.
He can be contacted at a.cuervocazurra@neu.edu.