The State Abroad: The Role of Emerging Market SOEs in International Business Dynamics

Purpose: This study examines emerging market State-Owned Multinationals’ (SOEs’) impact on the international business landscape by emphasising their dual role as commercial units and government instruments. Addressing the mainstream frameworks on internationalisation, we uncover the ways these firms navigate the complexities of global trade, thus contributing to the understanding of international business dynamics in the context of global power balances. Design/Methodology/Approach: By making use of a narrative literature review, this research aims to synthesise perspectives from a wide array of academic contributions found in leading international business journals. By examining this literature, the study seeks to integrate theories with findings from recent discussions on the internationalisation of emerging market SOEs. Through this methodological approach, we seek to elucidate the role of these firms in global trade and government dynamics in market operations. Findings: This research shows the increasing role of SOEs in the global market, with the rising protagonist part of emerging markets such as the BRICS countries. These firms play an important role of intersection in the commercial objectives and the geopolitical ambitions of their home country. The interaction between state influence, the institutional contexts in both home and host nation, and strategies both in political and economic terms are important perspectives brought by this research. Research limitation/Implications: The limitations of this research are the reliance on published academic literature, which may not always capture the dynamics of international business and the political scenario and its rapid developments, and the unstructured nature of a narrative literature review. The findings from this research have important implications for policymakers and business managers, as well as for the scholarly literature when understanding the internationalisation of emerging market SOEs.