Emerging Market Institutional Co-Evolution, State-Owned Firm Globalization, and the Resource Curse

We explore the effects of the natural resource “curse” on co- evolutionary relationships between emerging economy institutions and the internationalization of their state-owned enterprises. We discuss how these relationships challenge and extend prior institutional research because of three predominant resource curse characteristics (their boom-and-bust cycles and related public discourse and their “Dutch Disease,”-associated manufacturing sector investment crowd- out). In such an environment, state-owned enterprise ties with emerging economy regulative, normative and cognitive institutions moderate the firm’s internationalization over the emerging economy’s resource curse cycle. We use natural resource (e.g., oil and gas) and manufacturing sector examples in three propositions to describe this process. Finally, we discuss managerial/policy implications, limitations and future directions of our work."