Government intervention in state-owned enterprises (SOEs), and the consequences for firm performance, are a source of perennial debate, but much depends on the government’s political ideology and the dimension of performance considered. Shifts from a liberal to an interventionist regime are associated with significant gains in scale-related performance, but without improvements in profitability.
Findings suggest that the state may be both a strategic driver of expansion and a liability for profitability, depending on the prevailing political ideology.
Authors and affiliations:
● Adam Tatarynowicz (Nova School of Business and Economics)
● Won Yong Oh (University of Nevada, Las Vegas)
● Igor Postula (University of Warsaw)
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