TY - JOUR

T1 - POLI advantages of state-owned multinationals

AU - Panibratov, Andrei

AU - Garanina, Olga

AU - Ameyaw, Abdul-Kadir

AU - Anand, Amit

N1 - Panibratov, A., Garanina, O., Ameyaw, A.-K. and Anand, A. (2022), "POLI advantages of state-owned multinationals", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-12-2021-1872

PY - 2022/9/16

Y1 - 2022/9/16

N2 - 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.

AB - 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.

KW - Eclectic paradigm

KW - Emerging market multinational enterprises (EMNEs)

KW - Internationalization

KW - Political capabilities

KW - State-owned multinational enterprises (SOMNEs)

UR - http://www.scopus.com/inward/record.url?scp=85138168697&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/f239015e-ef10-3b8c-867c-0f6de451b002/

U2 - 10.1108/ijoem-12-2021-1872

DO - 10.1108/ijoem-12-2021-1872

M3 - Article

JO - International Journal of Emerging Markets

JF - International Journal of Emerging Markets

SN - 1746-8809

ER -