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Dear friends and colleagues,

Here are some articles on state- and family-owned firms and internationalization that have been accepted at Global Strategy Journal and will be published in future issues. You can find other forthcoming paper in the early view tab of the journal (https://onlinelibrary.wiley.com/toc/20425805/0/0).

Best wishes,

Gabriel Benito, Alvaro Cuervo-Cazurra, and Ram Mudambi

Co-editors of Global Strategy Journal



Does state ownership hurt or help minority shareholders? International evidence from control block acquisitions

Pursey P. M. A. R. Heugens, Steve Sauerwald, Roxana Turturea, Marc van Essen

We argue that state ownership is a crucial policy instrument for alleviating what is perhaps the most important principal¨Cprincipal (PP) agency problem around the globe: private benefits of control (PBC). Our results illustrate that states reduce PBC in the companies in which they acquire controlling ownership positions. We also examine how legal and political institutions influence the extent to which states accomplish this goal. Antiself©\dealing legal regulations make states more effective in their efforts to constrain PBC, while political constraints make them less effective. Regimes with high state capacity appear not to prioritize PBC reduction. We test and corroborate these ideas in a sample of 1,354 control transactions across 54 countries.

Relational ownership, institutional context, and internationalization of state©\owned enterprises: When and how are multinational co©\owners a plus?

Sergio Mariotti, Riccardo Marzano

We investigate when and how a foreign multinational enterprise by acting as a relational co©\owner helps the internationalization of hybrid state©\owned enterprises. We merge the ˇ°liability of statenessˇ± and the ˇ°government as strategistˇ± perspectives with an institutional context©\based approach. We claim that the effect of multinational enterprise relational co©\ownership is contingent on the countries' institutional settings. It is positive at lower levels of both institutional coordination (as a measure of variety of capitalism) and government effectiveness. This effect is mitigated as coordination and government effectiveness increase. Further, a comparison between hybrid state©\owned and private©\owned enterprises shows that the magnitude of the contribution by foreign relational co©\owners to internationalization is also moderated by institutional variables.

How do ownership type and knowledge transfer influence success of change? A study of transition economy firms

Mona Bahl, Aldas Kriauciunas, Thomas H Brush

This paper investigates the joint effect of ownership type and knowledge transfer on success of change. For knowledge transfer, we include transfer of both tacit and codified knowledge, and for ownership type, we consider state owned, privately founded, and privatized firms. We argue that incentives and monitoring mechanisms will cause a given ownership type to moderate the direct effect of knowledge transfer on success of change. Using data from firms in four transition economy countries, we find that the relationship between knowledge transfer and success of change is stronger for state owned firms compared to privately founded and privatized firms.

Behind the internationalization of family SMEs: A strategy tripod synthesis

Somnath Lahiri, Debmalya Mukherjee, Mike W. Peng

We review and synthesize the growing literature concerning the internationalization of small and medium©\sized family enterprises (family SMEs) around a strategy tripod framework. In doing so, we identify various resource©\based, institution©\based, and industry©\based factors that contribute to family SME internationalization endeavors. We also pinpoint possible home©\country©\level and host©\country©\level institutional and industry©\based structural¨Ccultural contingencies that may interact with family SME resource©\based factors to accentuate or impede their internationalization. Moreover, we highlight different behavioral orientations as crucial missing links that characterize the family SME internationalization scholarship. Overall, our comprehensive synthesis of the literature sheds light on how internationalization strategies of family SMEs vary based on important drivers and contextual influences captured in our tripod framework.

Reducing uncertainty in follow©\up foreign direct investment: Imitation by family firms

Sebastian P. L. Fourn¨¦, Miriam Zschoche

This paper examines to what extent family firms rely on imitation when deciding on foreign investment growth, highlighting the role of mimetic isomorphism and social categories. We propose that family firms pursue trait©\based imitation to reduce uncertainty in follow©\up foreign direct investment (FDI), and test our predictions on a large sample of German family firms. We find that family firms imitate successful peers that are also owned by a family. A family firm's tendency to imitate is strengthened during the initial years in a foreign market or when the firm is publicly listed. Performance below or above social aspiration strengthens or weakens imitation, respectively. We discuss the implications for research at the nexus of foreign investment growth, social categories, and the pursuit of imitation by family firms.

 



Alvaro CUERVO-CAZURRA

     Professor, International Business and Strategy, Northeastern University

     Co-editor, Global Strategy Journal

     D'Amore-McKim School of Business, 360 Huntington Avenue, Boston MA 02115, USA

     [log in to unmask]+1-617-373-6568. www.cuervo-cazurra.com.  

 Recent articles:

     Skepticism on globalization and global strategy: Increasing regulations and countervailing strategies. Global Strategy Journal

     Pro-market institutions and global strategy: The pendulum of pro-market reforms and reversals, Journal of International Business Studies

     Frugality based advantage, Long Range Planning

Recent books: 

     Mexican Multinationals: Building Multinationals in Emerging Markets. Cambridge University Press

     State-Owned Multinationals: Governments in Global Business. Palgrave  

     Emerging Market Multinationals: Solving Operational Challenges in Internationalization. Cambridge, UK: Cambridge University Press.

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