Conference Proceedings

A Double-dimensional Behavioural Model of State-owned Enterprises’ Investment: Evidence from China

Renfei Gao, Wenzhen Lu, Wei Hu, Geoffrey Martin

Academy of Management Proceedings | Academy of Management | Published : 2017


State-owned enterprises (SOEs)’ active investment is a remarkable phenomenon in the business world, whereas the motivations behind this behaviour are relatively less explored. Drawing on the multiple-goal model in the behavioural theory of the firm (BTOF) and the hybrid nature of SOEs, we developed a double-dimensional behavioural model to investigate how SOEs’ investment is driven separately and interactively by performance feedback in both commercial and socio-political dimensions. Using longitudinal data on Chinese SOEs in the manufacturing industry, we found that SOEs’ investment is significantly influenced by performance feedback in the socio-political dimension. Moreover, although perf..

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