Evaluation of Ownership Structure Impacts on Internationalization: A Case Series

This study examines how ownership structure of a company influences the internationalisation strategies of firms in emerging markets, focusing on state-owned and private-owned enterprises across the manufacturing, technology, and finance sectors. Adopting a case study methodology, the research draws on agency theory and internationalisation theory to explore how different ownership structure shape firms' risk preference and strategic expansion. While prior studies have overlooked the behavioural implications of ownership in emerging market multinationals, this study addresses that gap by offering firm-level insights. Findings reveal that state-owned enterprises (SOEs), constrained by government oversight, exhibit low risk tolerance and delay foreign investments to ensure policy compliance. In contrast, private-owned enterprises (POEs) tend to pursue growth-oriented strategies with higher risk preferences. Family-controlled POEs are conservative, often ignoring minority foreign investors' diversification demands, though foreign ownership or professional management can boost their risk preferences; hybrid state-private models face internal conflicts, limiting strategy and risk-taking. The study contributes to international business literature by demonstrating that ownership structure is a critical determinant of firms' global strategies. It emphasises the need for emerging market firms to balance ownership control with managerial expertise to achieve effective internationalisation.