POLI advantages of state-owned multinationals

Andrei Panibratov, Olga Garanina, Abdul-Kadir Ameyaw and Amit Anand

International Journal of Emerging Markets, 2022, vol. 19, issue 5, 1385-1406

Abstract: Purpose - The authors revisit the traditional OLI paradigm with the objective to allocate politics within the set of internationalization advantages by building on the political strategy literature. The authors outline the specific role of political advantage that facilitates and propels the international expansion of state-owned multinational enterprises (SOMNEs) from emerging markets. Design/methodology/approach - A conceptual paper which explains the role of political advantage in the internationalization of SOMNEs. The authors expand the scope of the OLI to capture the impact of firms' home governments' policies and relationships with host countries which are leveraged by SOMNEs in their internationalization. Findings - The authors define political advantage as a new type of advantage which depends on and is sourced from external actors. The authors argue that P-advantage is a multifaceted and unstable part of POLI composition, which is contingent on political shifts and may be leveraged by various firms. The authors also assert that political capabilities have limitations in sustaining political advantage, which may be compensated via enhancing the political activity of firms. Originality/value - The authors conceptualize the POLI-advantages paradigm for the internationalization of SOMNEs by proposing that in addition to the traditional ownership, location, and internalization advantages, firms can capitalize on their political advantage to enter markets where internationalization might have been difficult without their political connections.

Keywords: Emerging market multinational enterprises (EMNEs); Internationalization; Political capabilities; Eclectic paradigm; State-owned multinational enterprises (SOMNEs) (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijoemp:ijoem-12-2021-1872

DOI: 10.1108/IJOEM-12-2021-1872

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