Coalition of logics and consequential decision-making in partially privatized SOEs

Publication Type

Book Chapter

Publication Date

11-2024

Abstract

This chapter presents my research reflecting on the coexistence of two prevailing institutional logics inside Chinese partially privatized state-owned enterprises (SOEs): the state socialism logic that values societal goals such as employment, production quotas, and stability and the market capitalism logic that values profit maximization and shareholder interests. I examine how the two logics inherited from China's transitional institutional environment, manifested in the mixed ownership of SOEs, empower the formation of coalitions advocating the values and goals of each logic and consequently shape SOEs’ strategic decisions such as mergers and acquisitions. I also showcase a new study investigating the phenomenon of different sub-logics of the state entering privately owned enterprises (POEs) in China's ‘State Advances and Private Retreats’ movement in recent years and demonstrate that the penetration of different state sub-logics into market capitalism logic could impact the innovation outcome of this emerging version of mixed-ownership firms differently. The contribution of the context of Chinese SOEs to the theory of institutional logic, coalition, and decision-making is discussed in the chapter.

Keywords

Institutional logic, Coalition, Decision-making, Mixed ownership, Mergers and acquisitions, Innovation

Discipline

Asian Studies | Business Law, Public Responsibility, and Ethics | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Research Handbook on Corporate Governance in China

Editor

M. Conyon & L. He

First Page

369

Last Page

419

ISBN

9781035312610

Identifier

10.4337/9781035312610.00028

Publisher

Edward Elgar

City or Country

Chelteham

Additional URL

https://doi.org/10.4337/9781035312610.00028

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