The dual effects of state ownership on export activities of emerging market firms : An inducement–constraint perspective

In this study, we integrate resource dependence theory and agencytheory to argue that state ownership has a dual (inducement and constraint) effect onemerging market firms’ export performance. Building on this inducement-constraintframework, we hypothesize a non-linear relationship between state ownership andexport performance of emerging market firms that is further moderated by thevarying levels of home country government effectiveness. Using cross-sectionaldata of 4,239 firms from 16 emerging economies, as well as panel data of more than10,000 Chinese exporting firms, we find supporting evidence for these hypotheses.The theoretical development and empirical findings of this study highlight thecomplex and dynamic relationship between state ownership, government effectiveness, and export performance among firms from emerging economies