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The internationalization paradox: Untangling dependence in multinational state hybrids

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  • Rodrigues, Suzana B.
  • Dieleman, Marleen

Abstract

We investigate the internationalization of firms with ownership links to the state from the perspective of resource dependence theory, and argue that internationalization can reduce dependence on the home country government, but, paradoxically, this strategy also creates additional dependences, shifts the power balance, and provides rationales for increasing government control. Utilizing a ‘critical’ case – Vale from Brazil – we analyze different conditions that enable greater autonomy for and greater government control over multinational state hybrids in the context of internationalization. We contribute to the international business literature by generating a novel framework that considers the effects of market trends (extractive industry) and non-market trends (home country policies) on the internationalization of state hybrids.

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  • Rodrigues, Suzana B. & Dieleman, Marleen, 2018. "The internationalization paradox: Untangling dependence in multinational state hybrids," Journal of World Business, Elsevier, vol. 53(1), pages 39-51.
    • Handle: RePEc:eee:worbus:v:53:y:2018:i:1:p:39-51
    DOI: 10.1016/j.jwb.2017.08.003
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