THE AS­SET AND LI­A­BI­LI­TY OF STA­TE­NESS ABRO­AD: PU­BLIC PUR­PO­SE, PO­LI­TI­CAL VI­SI­BI­LI­TY, AND COR­PORA­TE SO­CI­AL PER­FOR­MAN­CE

Abstract: 
State-owned enterprises (SOEs) are increasingly prominent actors in global markets, yet research has primarily emphasized the liability of stateness abroad, including political scrutiny and legitimacy challenges. We develop a complementary perspective that conceptualizes stateness as simultaneously a liability and a potential strategic asset in international contexts. We argue that SOEs carry public-purpose orientations rooted in their historical ties to the state and broader societal mandates, and that these orientations can travel across borders as firms expand internationally. As SOEs operate abroad, however, they become politically visible actors whose behavior is interpreted not only commercially but also symbolically and geopolitically. Under these conditions, corporate social performance (CSP) abroad becomes especially salient because it can simultaneously help SOEs manage legitimacy challenges associated with political scrutiny while also enabling home governments to cultivate soft power and international goodwill. We further argue that the extent to which stateness functions more as a liability or a strategic asset depends on both sender-side and receiver-side conditions. Sender-side conditions, including home-country CSR disclosure mandates and foreign-aid orientations, shape the extent to which firms internalize public-purpose commitments and experience pressure to project socially responsible behavior abroad. Receiver-side conditions, including organizational visibility and stakeholder exposure, shape how strongly host-country audiences notice and attend to the organization and its actions, thereby increasing the salience of its political visibility. Using longitudinal data on multinational subsidiaries operating across 48 host countries between 2002 and 2023, we find support for these arguments. Our study contributes to research on state capitalism, organizational purpose, symbolic management, and political embeddedness by reconceptualizing stateness as a dual organizational condition that creates both legitimacy burdens and opportunities for influence, reputation, and symbolic value in global markets.

Short Bio:
Jing Li is a Professor of International Business and holds the Canada Research Chair in Global Investment Strategy at the Beedie School of Business, Simon Fraser University. She received her BA in Economics from Peking University and PhD in Business from Indiana University. Jing has studied international investment strategies of firms, emerging markets, state-owned enterprises, and the intersection of geopolitics, public policies, and firm strategies. She has published in leading business journals including Journal of International Business Studies, Journal of International Business Policy, Journal of Management Studies, and Strategic Management Journal, among others. Jing is equally passionate about teaching and engaging in activities that promote dialogue and collaboration among researchers, business leaders, and policymakers.