Coalition of logics and consequential decision-making in partially privatized SOEs

Cyndi Man Zhang

Chapter 20 in Research Handbook on Corporate Governance in China, 2025, pp 396-419 from Edward Elgar Publishing

Abstract: This chapter presents my research reflecting on the coexistence of two prevailing institutional logics inside Chinese partially privatized state-owned enterprises (SOEs): the state socialism logic that values societal goals such as employment, production quotas, and stability and the market capitalism logic that values profit maximization and shareholder interests. I examine how the two logics inherited from China's transitional institutional environment, manifested in the mixed ownership of SOEs, empower the formation of coalitions advocating the values and goals of each logic and consequently shape SOEs’ strategic decisions such as mergers and acquisitions. I also showcase a new study investigating the phenomenon of different sub-logics of the state entering privately owned enterprises (POEs) in China's ‘State Advances and Private Retreats’ movement in recent years and demonstrate that the penetration of different state sub-logics into market capitalism logic could impact the innovation outcome of this emerging version of mixed-ownership firms differently. The contribution of the context of Chinese SOEs to the theory of institutional logic, coalition, and decision-making is discussed in the chapter.

Keywords: Institutional logic; Coalition; Decision-making; Mixed ownership; Mergers and acquisitions; Innovation (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035312603
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