On Some Aspects of State-Owned Enterprises' Foreign Direct Investments (SOEs' FDI): The Case of Polish SOEs' FDI

On Some Aspects of State-Owned Enterprises' Foreign Direct Investments (SOEs' FDI): The Case of Polish SOEs' FDI

Marta Anna Götz (Vistula University, Poland) and Barbara Jankowska (Poznan University of Economics and Business, Poland)
DOI: 10.4018/978-1-5225-2345-1.ch007
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Abstract

This chapter seeks to enrich the existing literature by discussing the broader context of international engagement of state-owned enterprises (SOEs). It discusses the rationale for examining foreign direct investment (FDI) done by SOEs and outlines the challenges which need to be addressed in this respect. It provides a brief overview of FDI carried by Polish SOEs. The authors applied the qualitative methodology of critical literature review and descriptive analysis of internationalization of Polish state-controlled firms. This chapter can contribute to the current studies devoted mainly to Chinese or other Asian emerging state-controlled multinationals by adding the Central and Eastern European (CEE), in particular the Polish, perspective. It concludes that given the well-recognised peculiarities of such entities adequate framework needs to be adopted to explore their foreign activities. The Polish multi-case study encompassing nine entities demonstrates that the group can be pretty heterogeneous and indeed can combine the specificity of multinational enterprises (MNEs) and SOEs.
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Background: Idiosyncrasies Of State-Owned Enterprises

The real-life phenomenon which are SOEs and their internationalization efforts call for the alteration within the varieties of capitalism. Some experts underline that e.g. the typology distinguishing between the liberal market economy (LME), capital market economy (CME), dependant market economy (DME) should be enriched with the fourth model of SME – the State-Permeated Capitalism (Nölke, 2015). This new version complements existing ones by accentuating the state influence on the economy also via nurturing domestic champions and their outward FDI. Though, even in Europe the traditional varieties of capitalism have been undergoing profound changes in the result of 2008 global financial crisis (Schweiger, 2014). Todays’ approach seems to evolve towards more nuanced perception of state-owned or controlled companies away from simple dichotomy state or private which views SOEs as hybrid organizations, in which the levels of ownership and control by the state can vary significantly (Bruton et al., 2015). Modern state capitalism accommodating four new varieties - wholly owned state-owned enterprises, the state as a majority investor, the state as a minority investor, and the state as a strategic supporter of specific sectors - hence, challenges the conventional, very polarized view of state versus private ownership (Musacchio et al., 2015).

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