State-owned multinational enterprises: theory, performance, and impact

The emergence and importance of state-owned multinational enterprises (SOMNEs) has generated considerable academic and policy interest. Previous ideas around the fact that these MNEs do not possess the necessary resources and capabilities to compete with privately-owned international market players are challenged. The purpose of this chapter is to examine the theoretical perspectives and empirical evidence related to SOMNEs and to identify potential future research directions. In particular, the chapter discusses the boundary conditions that can limit what is often referred to as “the liability of stateness,” with particular reference to hybrid forms of ownership and political and institutional arrangements that exist in emerging markets. The analysis of the current evidence leads us to consider the possibility that, while some SOMNEs have become commercially competitive, other SOMNEs may have emerged with the primary purpose of extending state interests abroad.