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Note---Performance Evaluation of State-Owned Enterprises: A Process Perspective


  • Yair Aharoni

    (Tel Aviv University)


State-Owned Enterprises (SOEs) have become important instruments of social and economic policy in industrialized mixed economies and in developing countries. The use of SOEs as instruments of public policy and the resulting clashes between these enterprises and private firms on the one hand and government and other controllers on the other, are causing concern. Public committees in different countries as well as international organizations have been searching for positive theory for guidance in handling the multitude of problems related to these enterprises. Theoretical models have made important contributions to the formalization of certain problems and the classification of the information needed to solve them. Unfortunately, these theoretical models have had little relevance for the solution of important real problems. Much of the research on SOEs is concerned with how these enterprises should behave, and what should be the product of their operations. Almost no research has been done on why SOEs function as they do. The paucity of knowledge about the operation of SOEs stems both from insufficient research effort, and from the concern of researchers with formal structures and products of these organizations and not with management behavior or with decision processes. The purpose of this paper is to call for research beyond the confines of traditional economics, using the tools of management science to obtain insights into the difficult but salient problems of SOEs.

Suggested Citation

  • Yair Aharoni, 1981. "Note---Performance Evaluation of State-Owned Enterprises: A Process Perspective," Management Science, INFORMS, vol. 27(11), pages 1340-1347, November.
  • Handle: RePEc:inm:ormnsc:v:27:y:1981:i:11:p:1340-1347

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    Cited by:

    1. John W. Boudreau, 2004. "50th Anniversary Article: Organizational Behavior, Strategy, Performance, and Design in Management Science," Management Science, INFORMS, vol. 50(11), pages 1463-1476, November.
    2. Plūmiņš Māris & Ščeulovs Deniss, 2016. "Development of State-Owned Enterprises of Transport Industry in Latvia," Economics and Business, De Gruyter Open, vol. 29(1), pages 65-75, August.
    3. Majumdar, Sumit K., 1998. "Slack in the state-owned enterprise: An evaluation of the impact of soft-budget constraints," International Journal of Industrial Organization, Elsevier, vol. 16(3), pages 377-394, May.
    4. Stefano Clò & Marco Di Giulio & Maria Tullia Galanti & Maddalena Sorrentino, 2016. "Italian state-owned enterprises after decades of reforms: Still public?," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2016(3), pages 11-49.
    5. 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.
    6. Gautam Ahuja & Sumit Majumdar, 1998. "An Assessment of the Performance of Indian State-Owned Enterprises," Journal of Productivity Analysis, Springer, vol. 9(2), pages 113-132, March.
    7. Caroline Stiel, 2017. "Modern Public Enterprises: Organisational Innovation and Productivity," Discussion Papers of DIW Berlin 1713, DIW Berlin, German Institute for Economic Research.
    8. Anubha Sekhar Sinha & Sougata Ray & Preet S. Aulakh, 2015. "Institutional traction: how state owned enterprises can harness their position from their institutional context?," Working papers 180, Indian Institute of Management Kozhikode.
    9. Pan, Yigang & Li, Xiaolian, 1998. "Alliance of foreign firms in equity joint ventures in China," International Business Review, Elsevier, vol. 7(4), pages 329-350, August.
    10. 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.
    11. Naubahar Sharif, 2018. "To License or Sell: A Study on the Patent Transaction Modes in China," HKUST IEMS Working Paper Series 2018-51, HKUST Institute for Emerging Market Studies, revised Jan 2018.


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