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The autocratic advantage: Internationalization of state-owned multinationals
Affiliation:1. Leeds University Business School, University of Leeds, Woodhouse Lane, Leeds, LS2 9JT, United Kingdom;2. King’s Business School, 30 Aldwych, WC2B 4BG, London, United Kingdom;1. Aarhus University, School of Business and Social Sciences, Department of Management, Fuglesangs Allé 4, 8210 Aarhus V, Denmark;2. University of Adelaide, Business School, 10 Pulteney Street, Adelaide, 5005, SA, Australia;1. Gordon Institute of Business Science, University of Pretoria, 25 Fricker Road, Illovo, Johannesburg, 2146, South Africa;2. University of Sussex, Jubilee Building, Falmer, Brighton, BN1 9RH, UK;3. Graduate School of Business, University of Cape Town, 8 Portswood Road, V&A Waterfront, Cape Town, 8002, South Africa;1. Department of Strategic Management and Globalization, Copenhagen Business School, Copenhagen, Denmark;2. Faculty of Business Administration, Memorial University of Newfoundland, St. John''s, NL, Canada;3. Sauder School of Business, The University of British Columbia, Vancouver, BC, Canada;4. Department of International Trade, Duksung Women’s University, Seoul, Republic of Korea;1. Universidad Adolfo Ibáñez, Escuela de Negocios, Av Diagonal Las Torres 2640, Peñalolén, Santiago, 7941169, Chile;2. Washington and Lee University, Williams School of Commerce, Economics and Politics, 204W. Washington St, Lexington, VA 24450, United States;3. University of Colorado-Boulder, Leeds School of Business, 419 UCB, Boulder, CO 80309, United States;1. German Development Institute/Deutsches Institut für Entwicklungspolitik (DIE), Tulpenfeld 6, 53113 Bonn, Germany;2. Centre for International Business (CIBUL), Leeds University Business School, Maurice Keyworth Building, The University of Leeds, LS2 9JT, UK;1. FGV/EAESP – Fundação Getúlio Vargas, Doutorado em Administração de Empresas, Av. 9 de Julho, 2029 – Bela Vista, 01313-902 São Paulo, São Paulo, Brazil;2. UNINOVE – Universidade Nove de Julho, Programa de Pós-Graduação em Administração, Av. Francisco Matarazzo, 612, Prédio C – 2°, 05001-100 São Paulo, São Paulo, Brazil;3. ESTG – Instituto Politécnico de Leiria, Morro do Lena – Alto Vieiro, 2411-901 Leiria, Portugal;4. Poli – Universidade São Paulo, Av. Luciano Gualberto, Travessa 3, n° 380, 005508-010 São Paulo, São Paulo, Brazil
Abstract:We offer a theoretical extension and empirical analysis of home country autocracy as a key determinant for the internationalization of state-owned enterprises (SOEs). Building on international business and international political economy theory, we argue that the pursuit of a mercantilist domestic agenda by autocratic governments is influential upon the magnitude and direction of state-owned multinational enterprises’ (SOMNC) outward investment via acquisition. We conclude that autocratic home countries are ‘re-purposing’ SOEs to pursue international nationalist objectives – and that autocracies can do so more effectively and purposefully than democracies, by maintaining effective control over their SOMNCs.
Keywords:Home political regime  State-owned multinationals  Emerging economies’ OFDI  Mergers & acquisitions
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