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A review of the internationalization of state-owned firms and sovereign wealth funds: Governments’ nonbusiness objectives and discreet power

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journal contribution
posted on 19.05.2022, 15:35 by Alvaro Cuervo-Cazurra, Anna GrosmanAnna Grosman, William L Megginson
We review and bridge the literature on the internationalization of state-owned firms and sovereign wealth funds to provide a novel understanding of how governments’ nonbusiness objectives affect foreign investments. We explain how governments as foreign investors behave differently from private ones because they need to balance politicians’ nonbusiness objectives and firms’ business goals. This results in competing arguments on whether the government helps or hinders internationalization. Building on the review, we provide suggestions as to how to extend research topics and theories of the firm by incorporating these nonbusiness objectives in the internationalization decision. Finally, we capture how governments may use state-owned multinationals and sovereign wealth funds to nudge host country governments by introducing the concept of discreet power, outlining the beginning of a unified approach to how governments use their foreign investments to achieve nonbusiness goals.

Funding

Lloyd Mullin Research Fellowship

History

School

  • Loughborough University London

Published in

Journal of International Business Studies

Publisher

Palgrave Macmillan (part of Springer Nature)

Version

VoR (Version of Record)

Rights holder

© The Authors

Publisher statement

This is an Open Access Article. It is published by Palgrave Macmillan (part of Springer Nature) under the Creative Commons Attribution 4.0 International Licence (CC BY). Full details of this licence are available at: https://creativecommons.org/licenses/by/4.0/

Acceptance date

15/11/2021

Publication date

2022-05-11

Copyright date

2022

ISSN

0047-2506

eISSN

1478-6990

Language

en

Depositor

Dr Anna Grosman. Deposit date: 19 November 2021