State-owned Enterprises Around the WORLD as Hybrid Organizations

State-owned enterprises represent approximately 10% of global gross domestic product. Yet they remain relatively underexplored by management scholars. Firms have often been viewed dichotomously as either state owned or privately owned. Today, however, we encourage a more nuanced view of state-owned enterprises as hybrid organizations, in which the levels of ownership and control by the state can vary. Drawing on 36 cases from four industries in 23 countries, we lay the groundwork for a richer understanding of state-owned enterprises by management scholars in the future.

[1]  Yasheng Huang,et al.  Web of Interests and Patterns of Behaviour of Chinese Local Economic Bureaucracies and Enterprises during Reforms , 1990, The China Quarterly.

[2]  S. L. Sun,et al.  An anatomy of state control in the globalization of state-owned enterprises , 2015 .

[3]  S. Deshpande,et al.  Factors Impacting Ethical Behavior in a Chinese State-Owned Steel Company , 2012 .

[4]  N. D. Pidgen,et al.  The Comparative Method , 1987 .

[5]  L. Steier.  Confounding Market and Hierarchy in Venture Capital Governance: The Canadian Immigrant Investor Program , 1998 .

[6]  W. Hou,et al.  Player and Referee Roles Held Jointly: The Effect of State Ownership on China’s Regulatory Enforcement Against Fraud , 2010 .

[7]  A. Kozminski.  Catching Up?: Organizational and Management Change in the Ex-Socialist Block , 1993 .

[8]  D. Ahlstrom,et al.  Researchers' Roles in Negotiating the Institutional Fabric of Technologies , 1997 .

[9]  Sharon Foley,et al.  Strategic human resource management, firm performance, and employee relations climate in China , 2008 .

[10]  James A. Robinson,et al.  Why nations fail ? The origins of Power , Prosperity and Poverty , 2015 .

[11]  Edward S. Steinfeld.  Forging Reform in China: The Fate of State-Owned Industry , 1998 .

[12]  Tianyu Zhang,et al.  Political Considerations in the Decision of Chinese SOEs to List in Hong Kong , 2012 .

[13]  Tony W. Tong,et al.  Ownership Types and Strategic Groups in an Emerging Economy , 2004 .

[14]  Francis E. Hutchinson.  The Oxford Handbook of Asian Business Systems , 2014 .

[15]  Thomas Diefenbach,et al.  Formal and Informal Hierarchy in Different Types of Organization , 2011 .

[16]  Jonathan G. S. Koppell.  Political Control for China's State-Owned Enterprises: Lessons from America's Experience with Hybrid Organizations , 2007 .

[17]  Garry D. Bruton,et al.  Rapid Institutional Shifts and the Co–evolution of Entrepreneurial Firms in Transition Economies , 2010 .

[18]  G. Bruton,et al.  The impact of the institutional environment on the venture capital industry in Singapore , 2002 .

[19]  Wladimir M. Sachs,et al.  Grounded Theory Method in Management Research , 2008 .

[20]  A. Harrison,et al.  Ownership Versus Environment: Disentangling the Sources of Public-Sector Inefficiency , 2000, Review of Economics and Statistics.

[21]  Karen Locke,et al.  Composing Qualitative Research , 1997 .

[22]  Ilya Okhmatovskiy.  Performance Implications of Ties to the Government and Soes: A Political Embeddedness Perspective , 2010 .

[23]  Jihong Liu,et al.  The Effect of Guanxi on Audit Quality in China , 2011 .

[24]  Yingqi Wei,et al.  Do local manufacturing firms benefit from transactional linkages with multinational enterprises in China? , 2009 .

[25]  W. Scott.  Institutions and organizations : ideas, interests and identities , 2014 .

[26]  Karen L. Newman.  Organizational Transformation During Institutional Upheaval , 2000 .

[27]  Richard Whitley,et al.  Internationalization and varieties of capitalism: the limited effects of cross-national coordination of economic activities on the nature of business systems , 1998 .

[28]  R. Greenwood,et al.  Institutional Entrepreneurship in Mature Fields: The Big Five Accounting Firms , 2006 .

[29]  Donald N. McCloskey.  Tunzelmann, Schumpeter, and the Hockey Stick , 2013 .

[30]  Roselyn Hsueh,et al.  China's Regulatory State: A New Strategy for Globalization , 2011 .

[31]  William L. Megginson,et al.  Forthcoming, Journal of Economic Literature FROM STATE TO MARKET: A SURVEY OF EMPIRICAL STUDIES ON PRIVATIZATION , 2000 .

[32]  Shorey Peterson,et al.  The Modern Corporation and Private Property. , 1933 .

[33]  Qian Sun,et al.  China share issue privatization: the extent of its success , 2003 .

[34]  Yi Jiang,et al.  Corporate Governance in Emerging Economies: A Review of the Principal-Principal Perspective , 2008 .

[35]  Przemysław Kowalski,et al.  State-Owned Enterprises: Trade Effects and Policy Implications , 2013 .

[36]  Pramodita Sharma,et al.  Strategic Management of the Family Business: Past Research and Future Challenges , 1997 .

[37]  Hong Kong stock listing and the sensitivity of managerial compensation to firm performance in state-controlled Chinese firms , 2012 .

[38]  Oliver E. Williamson,et al.  Markets, hierarchies, and the modern corporation: An unfolding perspective , 1992 .

[39]  Bibo Liu,et al.  China's Secondary Privatization: Perspectives from the Split-Share Structure Reform , 2012 .

[40]  R. Yin.  Case Study Research: Design and Methods , 1984 .

[41]  Donald N. McCloskey,et al.  Erasmus Journal for Philosophy and Economics, , 2008 .

[42]  Joel Mokyr,et al.  The Enlightened Economy: An Economic History of Britain 1700-1850 , 2010 .

[43]  János Kornai,et al.  The Socialist System , 1992 .

[44]  W. Powell,et al.  The New Institutionalism in Organizational Analysis , 1993 .

[45]  L. Markoczy,et al.  The Continuing Importance of Political Ties in China , 2014 .

[46]  D. Wicks.  Institutionalized Mindsets of Invulnerability: Differentiated Institutional Fields and the Antecedents of Organizational Crisis , 2001 .

[47]  Narjess Boubakri,et al.  The Role of State and Foreign Owners in Corporate Risk-Taking: Evidence from Privatization , 2012 .

[48]  W. Dugger.  The Economic Institutions of Capitalism , 1987 .

[49]  Andrei Shleifer,et al.  State Versus Private Ownership , 1998 .

[50]  A. Lewin,et al.  Prolegomena on Coevolution: a Framework for Research on Strategy and New Organizational Forms , 1999 .

[51]  J. Chua,et al.  Asian family enterprises and family business research , 2013 .

[52]  Sonja Opper,et al.  Capitalism from Below , 2012 .

[53]  D. Osborne,et al.  Reinventing Government: How the En-trepreneurial Spirit is Transforming the Public Sector , 1992 .

[54]  Jiangyong Lu,et al.  Varieties in state capitalism: Outward FDI strategies of central and local state-owned enterprises from emerging economy countries , 2014 .

[55]  Pramodita Sharma,et al.  An Overview of the Field of Family Business Studies: Current Status and Directions for the Future , 2004 .

[56]  Igor Filatotchev,et al.  Downsizing in Privatized Firms in Russia, Ukraine, and Belarus , 2000 .

[57]  T. Douglas,et al.  The Seller's Perspective on Determinants of Acquisition Likelihood: Insights from China's Beer Industry , 2013 .

[58]  Yasheng Huang.  Debating China's Economic Growth: The Beijing Consensus or The Washington Consensus , 2010 .

[59]  P. Gourevitch,et al.  Political Power and Corporate Control , 2010 .

[60]  Peter J. Klenow,et al.  Misallocation and Manufacturing TFP in China and India , 2007 .

[61]  Eric Maskin,et al.  Understanding the Soft Budget Constraint , 2003 .

[62]  F. Tipton.  Southeast Asian capitalism: History, institutions, states, and firms , 2009 .

[63]  W. Scott,et al.  INSTITUTIONAL THEORY AND INSTITUTIONAL CHANGE: INTRODUCTION TO THE SPECIAL RESEARCH FORUM , 2002 .

[64]  Pamela S. Tolbert,et al.  Institutionalization and Structuration: Studying the Links between Action and Institution , 1997 .

[65]  D. North.  Institutions, Institutional Change and Economic Performance: Economic performance , 1990 .

[66]  Geert Bouckaert,et al.  Public Management Reform: A Comparative Analysis , 2004 .

[67]  Alan Siu,et al.  Institutions and Corporate Investment: Evidence from Investment-Implied Return on Capital in China , 2011, Journal of Financial and Quantitative Analysis.

[68]  G. Bruton,et al.  Turnaround success of large and midsize Chinese owned firms: evidence from Hong Kong and Thailand , 2001 .

[69]  Terence Tsai,et al.  Strategy in emerging economies and the theory of the firm , 2014, Asia Pacific Journal of Management.

[70]  Q. Gu,et al.  Organizational Forms and Multi-population Dynamics , 2014 .

[71]  K. Meyer,et al.  Overcoming distrust: How state-owned enterprises adapt their foreign entries to institutional pressures abroad , 2014, Multinational Enterprises and Emerging Economies.

[72]  Morgan W. McCall,et al.  High Flyers: Developing the Next Generation of Leaders, Robert G. Zed (Ed.). Morrison-Crothall Canada; and Colin AM. Stevenson, Operations Director, Morrison-Crow Canada (1998) , 1997 .

[73]  E. Ziegel,et al.  The Balanced Scorecard , 1998 .

[74]  M. Flinders.  Public/Private: The Boundaries of the State , 2006 .

[75]  C. Tam,et al.  Factors that Drive Chinese Listed Companies in Voluntary Disclosure of Environmental Information , 2012 .

[76]  Daron Acemoglu,et al.  Introduction to Modern Economic Growth , 2009 .

[77]  Xiaohua Lin,et al.  Organizational structure, context, customer orientation, and performance: lessons from Chinese state‐owned enterprises , 2003 .

[78]  Klaus E. Meyer,et al.  Asian management research needs more self-confidence , 2006 .

[79]  Garry D. Bruton,et al.  Institutional Theory and Entrepreneurship: Where Are We Now and Where Do We Need to Move in the Future? , 2010 .

[80]  Yan Wang,et al.  Ownership structure and corporate governance in Chinese stock companies , 1999 .

[81]  Michael M. Crow,et al.  Public, Private and Hybrid Organizations , 1988 .

[82]  D. Ahlstrom.  Innovation and Growth: How Business Contributes to Society , 2010 .

[83]  Michael E. Raynor,et al.  The Innovator's Solution: Creating and Sustaining Successful Growth , 2003 .

[84]  John Vickers,et al.  Economic Perspectives on Privatization , 1991 .

[85]  Eskil Le Bruyn Goldeng,et al.  The Performance Differential between Private and State Owned Enterprises: The Roles of Ownership, Management and Market Structure , 2008 .

[86]  Wei He,et al.  Rewards-Allocation Preferences of Chinese Employees in the New Millennium: The Effects of Ownership Reform, Collectivism, and Goal Priority , 2004 .

[87]  Kjetil Storesletten,et al.  Growing like China∗ , 2008 .

[88]  Danny Miller,et al.  Angel Agents: Agency Theory Reconsidered , 2011 .

[89]  Karen Locke.  Grounded Theory in Management Research , 2000 .

[90]  Michael A. Hitt,et al.  Conflicting Voices: The Effects of Institutional Ownership Heterogeneity and Internal Governance on Corporate Innovation Strategies , 2002 .

[91]  Nandini Gupta.  Partial Privatization and Firm Performance , 2002 .

[92]  G. Bamossy,et al.  Post-Formation Processes in Eastern and Western European Joint Ventures , 2006 .

[93]  James N. Baron,et al.  Strategic Human Resources: Frameworks for General Managers , 1999 .

[94]  T. Wong,et al.  State ownership, the institutional environment, and auditor choice: Evidence from China , 2008 .

[95]  Cai Jing,et al.  A healthy hybrid: The technological dynamism of minority-state-owned firms in China , 2005, Technol. Anal. Strateg. Manag..

[96]  Hong Sheng,et al.  China's State-owned Enterprises: Nature, Performance And Reform , 2012 .

[97]  Shaomin Li,et al.  Control Modes and Outcomes of Transformed State-Owned Enterprises in China: An Empirical Test , 2012, Management and Organization Review.

[98]  Florencio López‐de‐Silanes,et al.  Corporate Ownership Around the World , 1998 .

[99]  Sheilagh Ogilvie.  Institutions and European Trade: Merchant Guilds, 1000-1800 , 2011 .

[100]  S. Lazzarini,et al.  Reinventing State Capitalism: Leviathan in Business, Brazil and Beyond , 2014 .

[101]  Loizos Heracleous,et al.  Rethinking Agency Theory: The View from Law , 2010 .

[102]  T. Khanna,et al.  Toward resource independence – Why state-owned entities become multinationals: An empirical study of India’s public R&D laboratories , 2014 .

[103]  Thomas H. Johnson,et al.  Relevance Lost: The Rise and Fall of Management Accounting , 1987 .

[104]  Philip M. Marcus,et al.  The Visible Hand: The Managerial Revolution in American Business , 1979 .

[105]  Anne-Claire Pache,et al.  Inside the Hybrid Organization: Selective Coupling as a Response to Competing Institutional Logics , 2013 .

[106]  B. Ke,et al.  Are Stock Option Grants to Directors of State-Controlled Chinese Firms Listed in Hong Kong Genuine Compensation? , 2013 .

[107]  P. Vermeulen,et al.  Complex Incremental Product Innovation in Established Service Firms: A Micro Institutional Perspective , 2006 .

[108]  M. Friedman.  The Social Responsibility of Business Is to Increase Its Profits , 2007 .

[109]  R. Gibbons,et al.  The Handbook of Organizational Economics , 2012 .

[110]  Anselm L. Strauss,et al.  Basics of qualitative research : techniques and procedures for developing grounded theory , 1998 .

[111]  J. Duanmu.  State-owned MNCs and host country expropriation risk: The role of home state soft power and economic gunboat diplomacy , 2014 .

[112]  Xueli Wang,et al.  Today's state‐owned enterprises of China: are they dying dinosaurs or dynamic dynamos? , 2006 .

[113]  Slack and the performance of state-owned enterprises , 2014 .

[114]  Abagail McWilliams,et al.  Corporate Social Responsibility: a Theory of the Firm Perspective , 2001 .

[115]  G. Bruton,et al.  Turnaround in East Asian firms: evidence from ethnic Overseas Chinese communities , 2003 .

[116]  L H Lovins,et al.  A road map for natural capitalism. , 1999, Harvard business review.

[117]  Gerald J. Lobo,et al.  Effects of Audit Quality on Earnings Management and Cost of Equity Capital: Evidence from China , 2010 .

[118]  S. Shane.  Hybrid Organizational Arrangements and Their Implications for Firm Growth and Survival: A Study of New Franchisors , 1996 .

[119]  Bruce Kogut,et al.  Entrepreneurship and Privatization in Central Europe: The Tenuous Balance Between Destruction and Creation , 2000 .

[120]  J. Battilana,et al.  BUILDING SUSTAINABLE HYBRID ORGANIZATIONS: THE CASE OF COMMERCIAL MICROFINANCE ORGANIZATIONS , 2010 .

[121]  T. P. Hughes,et al.  The Social Construction of Technological Systems: New Directions in the Sociology and History of Technology , 1989 .

[122]  C. Bai,et al.  Bureaucratic Control and the Soft Budget Constraint , 1998 .

[123]  Justin Tan.  Venturing in Turbulent Water: A Historical Perspective of Economic Reform and Entrepreneurial Transformation , 2005 .

[124]  P. Hall,et al.  Varieties of Capitalism , 2001 .

[125]  A. Directorate,et al.  STATE-OWNED ENTERPRISES: TRADE EFFECTS AND POLICY IMPLICATIONS OECD Trade Policy Paper No. 147 , 2012 .

[126]  Kelley O'Reilly,et al.  Demystifying Grounded Theory for Business Research , 2012 .

[127]  Lowell W. Busenitz,et al.  Managerial Agents Watching other Agents: Multiple Agency Conflicts Regarding Underpricing in IPO Firms , 2008 .

[128]  Robin Stanley Snell,et al.  Turnaround, Corruption and Mediocrity: Leadership and Governance in Three State Owned Enterprises in Mainland China , 2003 .

[129]  R. Hsueh.  China and India in the Age of Globalization , 2012 .

[130]  Franz W. Kellermanns,et al.  The Adolescence of Family Firm Research , 2012 .

[131]  F. Sjöholm.  State Owned Enterprises And Equitization In Vietnam , 2006 .

[132]  A. Musacchio,et al.  The Return of State-Owned Enterprises: Should We Be Afraid? , 2009 .

[133]  O. Williamson,et al.  Markets and Hierarchies: Analysis and Antitrust Implications. , 1977 .

[134]  E. Hobsbawm,et al.  The invention of tradition , 1986 .

[135]  Saul Estrin,et al.  Institutions, resources and entry strategies in emerging economies , 2009 .

[136]  A. Bass,et al.  Resource security: Competition for global resources, strategic intent, and governments as owners , 2014, Journal of International Business Studies.

[137]  David P. Norton,et al.  The Balanced Scorecard , 1998 .

[138]  Mike W. Peng,et al.  The Growth of the Firm in Planned Economies in Transition: Institutions, Organizations, and Strategic Choice , 1996 .

[139]  Gordon Y. N. Tang,et al.  Dividends Behavior in State- Versus Family-Controlled Firms: Evidence from Hong Kong , 2012 .

[140]  S. Maheshwari,et al.  Turning Around a State Owned Enterprise: The Case of Scooters India Limited , 2004 .

[141]  Edward S. Steinfeld.  Response to Charles A. Kupchan's review of Playing Our Game: Why China's Rise Doesn't Threaten the West , 2010, Perspectives on Politics.

[142]  J. Lerner,et al.  Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed--And What to Do about It , 2009 .

[143]  M. C. Jensen.  Value Maximisation, Stakeholder Theory, and the Corporate Objective Function , 2001 .

[144]  Richard W. Carney,et al.  Changes to the Ownership and Control of East Asian Corporations between 1996 and 2008: The Primacy of Politics , 2012 .

[145]  Mark C. Suchman.  Managing Legitimacy: Strategic and Institutional Approaches , 1995 .

[146]  Garry D. Bruton,et al.  Private firms in China: Building legitimacy in an emerging economy , 2008 .

[147]  Rae André.  Assessing the Accountability of Government-Sponsored Enterprises and Quangos , 2010 .

[148]  K. Eisenhardt.  Agency- and Institutional-Theory Explanations: The Case of Retail Sales Compensation , 1988 .

[149]  B. Cooke.  The Denial of Slavery in Management Studies , 2003 .

[150]  Joseph P. H. Fan,et al.  Politically Connected CEOs, Corporate Governance, and the Post‐IPO Performance of China's Partially Privatized Firms , 2014 .

[151]  Kit-Chun Lam,et al.  Factors Affecting Ethical Attitudes in Mainland China and Hong Kong , 2008 .

[152]  Private Equity and Employment , 2011 .

[153]  Kathryn L. Dewenter,et al.  State-Owned and Privately Owned Firms: An Empirical Analysis of Profitability, Leverage, and Labor Intensity , 2001 .

[154]  Sunny Li Sun,et al.  The Institution-Based View as a Third Leg for a Strategy Tripod. , 2009 .

[155]  D. Ahlstrom.  The Hidden Reason Why the First World War Matters Today: The Development and Spread of Modern Management , 2014 .

[156]  R. Freeman.  Strategic Management: A Stakeholder Approach , 2010 .

[157]  R. Chun.  Ethical Values and Environmentalism in China: Comparing Employees from State-Owned and Private Firms , 2009 .

[158]  Gerald J. Lobo,et al.  Association Between Borrower and Lender State Ownership and Accounting Conservatism , 2010 .

[159]  M. Easterby-Smith,et al.  Working With Pluralism , 2008 .

[160]  Steven White,et al.  Competition, Capabilities, and the Make, Buy, or Ally Decisions of Chinese State-Owned Firms , 2000 .

[161]  S. Mark Young,et al.  Influence Activities and Favoritism in Subjective Performance Evaluation: Evidence from Chinese State-Owned Enterprises , 2012 .

[162]  Andrea L. Larson.  Network Dyads in Entrepreneurial Settings: A Study of the Governance of Exchange Relationships , 1992 .

[163]  A. Greif.  Institutions and the Path to the Modern Economy: Lessons from Medieval Trade , 2006 .

[164]  K. Eisenhardt.  Agency Theory: An Assessment and Review , 1989 .

[165]  S. Lazzarini,et al.  Leviathan as a Minority Shareholder: Firm-Level Implications of State Equity Purchases , 2013 .