The BI Business History Seminar

Abstract

This study examines the strategic challenges faced by state-owned enterprises (SOEs) when they internationalize, focusing on the inherent tensions between their home market advantages and the demands of foreign markets. SOEs are typically well-adapted to their domestic institutional environments and maintain close relationships with political decision-makers. However, when these enterprises expand internationally, they often lose these home market advantages and must compete against local SOEs with similar domestic benefits. Additionally, SOEs may carry out special missions, such as promoting employment or regional development, which do not necessarily align with the demands of new markets. These factors necessitate the adoption of dual strategies—balancing their traditional domestic roles with the requirements of international competition. Through historical case studies of three companies—Swedish Telecom Operator Televerket/Telia, British Telecom (BT), and Norwegian Norsk Hydro—this paper explores how different forms of state ownership and internationalization models influence strategic choices. By comparing these cases, the study sheds light on the complexities SOEs face when navigating international markets and offers insights into how ownership structures and market environments shape strategic decision-making. The findings contribute to the broader understanding of how SOEs can effectively balance their dual roles in both domestic and international arenas, offering strategic management implications for policymakers and business leaders engaged in the global expansion of state-owned entities.

For questions, registration and access to Zoom link, please contact Espen Ekberg, espen.ekberg@bi.no