The globalization path of state-owned enterprises in western China under state intervention since 2000

Abstract

This study examines the differences in the outward investment behaviors of central state-owned enterprises (SOEs) in western China and discusses their driving mechanisms to discover the state-intervened globalization paths of enterprises with Chinese characteristics. We find that SOEs have followed either a “gradual” or a “jump” globalization path depending on their ownership and industry. The evolution of cross-border investment's development stages can be summarized into four paths. The “Supporting Type” path is in line with the Uppsala Model. The “Spoon-shaped” and “Upgraded type” paths are in line with the Springboard Perspective. The “Inverted U-shaped” path indicates that the early and mid-term period belongs to the Springboard Perspective, and the later internationalization period conforms to the Uppsala Model. Examining the intervention mechanism of state power in the globalization of SOEs in western China yields that proximity, and China's institutional characteristics affect the globalization path of centralized enterprises in western China by influencing ownership. The governmental system has both positive and negative effects on the internationalization of SOEs, and whether it can be counteracted depends on SOEs' degree of nationalization.