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The Performance Differential between Private and State Owned Enterprises: The Roles of Ownership, Management and Market Structure

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  • Eskil Goldeng
  • Leo A. Grünfeld
  • Gabriel R. G. Benito

Abstract

This article examines differences in performance between private companies (POEs) and state owned enterprises (SOEs), with an emphasis on the effects of market structure. The study uses a comprehensive panel covering in principle all registered companies during the 1990s in Norway, a country where SOEs play an important role in regular markets. Return on assets as well as costs relative to sales revenue are used as measures of performance in markets where SOEs and POEs compete with each other. Overall, POEs perform significantly better than SOEs. The study tests the hypothesis that SOE managers may learn from POE managers in environments with stronger competition, but finds only weak empirical support for such a learning mechanism. Copyright (c) Blackwell Publishing Ltd 2008.

Suggested Citation

  • Eskil Goldeng & Leo A. Grünfeld & Gabriel R. G. Benito, 2008. "The Performance Differential between Private and State Owned Enterprises: The Roles of Ownership, Management and Market Structure," Journal of Management Studies, Wiley Blackwell, vol. 45(7), pages 1244-1273, November.
  • Handle: RePEc:bla:jomstd:v:45:y:2008:i:7:p:1244-1273
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    Cited by:

    1. Estrin, Saul & Meyer, Klaus E. & Nielsen, Bo B. & Nielsen, Sabina, 2016. "Home country institutions and the internationalization of state owned enterprises: a cross-country analysis," LSE Research Online Documents on Economics 64605, London School of Economics and Political Science, LSE Library.
    2. repec:sgh:gosnar:y:2017:i:3:p:89-114 is not listed on IDEAS
    3. repec:kap:asiapa:v:34:y:2017:i:2:d:10.1007_s10490-016-9477-9 is not listed on IDEAS
    4. Farhad Shahveisi & Farshid Khairollahi & Mohammad Alipour, 2017. "Does ownership structure matter for corporate intellectual capital performance? An empirical test in the Iranian context," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 67-91, April.
    5. Ciprian Stan & Mike Peng & Garry Bruton, 2014. "Slack and the performance of state-owned enterprises," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 473-495, June.
    6. Conti, Claudio Ramos & Parente, Ronaldo & de Vasconcelos, Flávio C., 2016. "When distance does not matter: Implications for Latin American multinationals," Journal of Business Research, Elsevier, vol. 69(6), pages 1980-1992.
    7. repec:eco:journ1:2017-06-17 is not listed on IDEAS
    8. repec:spr:manint:v:52:y:2012:i:6:d:10.1007_s11575-012-0148-x is not listed on IDEAS
    9. repec:eee:chieco:v:44:y:2017:i:c:p:296-310 is not listed on IDEAS
    10. Mike W. Peng & Garry D. Bruton & Ciprian V. Stan & Yuanyuan Huang, 2016. "Theories of the (state-owned) firm," Asia Pacific Journal of Management, Springer, vol. 33(2), pages 293-317, June.
    11. Ilya Okhmatovskiy, 2010. "Performance Implications of Ties to the Government and SOEs: A Political Embeddedness Perspective," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 1020-1047, September.
    12. Xiao, Simon Shufeng & Jeong, Insik & Moon, Jon Jungbien & Chung, Chris Changwha & Chung, Jaiho, 2013. "Internationalization and Performance of Firms in China: Moderating Effects of Governance Structure and the Degree of Centralized Control," Journal of International Management, Elsevier, vol. 19(2), pages 118-137.
    13. Estrin, Saul & Meyer, Klaus E. & Nielsen, Bo B. & Nielsen, Sabina, 2016. "Home country institutions and the internationalization of state owned enterprises: A cross-country analysis," Journal of World Business, Elsevier, vol. 51(2), pages 294-307.
    14. repec:eee:iburev:v:27:y:2018:i:1:p:289-308 is not listed on IDEAS
    15. repec:eee:fambus:v:8:y:2017:i:3:p:123-136 is not listed on IDEAS
    16. Vergés, Joaquim, 2014. "Evaluación de la eficiencia comparativa de empresas y entidades productivas: Indicadores y técnicas de análisis
      [Evaluating comparative efficiency of companies and productive entities: Measures and
      ," MPRA Paper 58329, University Library of Munich, Germany.
    17. Sprenger, C., 2010. "State Ownership in the Russian Economy. Part 2. Governance Problems and Performance Effects," Journal of the New Economic Association, New Economic Association, issue 7, pages 90-110.

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