In this study, Andrei Panibratov, a Teacher researcher at EMLV, aims to explore when and under what conditions state-owned enterprises (SOEs) become essential players in orchestrating global climate action and what their roles are as domestic or international (de)carbonizers.
The study utilizes institutional theory to analyze how home-country climate regulation mechanisms and internationalization influence the involvement of SOEs in the global climate agenda.
Understanding the SOEs role in the global climate challenge
This conceptual paper addresses a pressing issue: the role of SOEs in addressing the global climate challenge. The authors draw on the institutional theory to underscore the importance of home-country climate regulation mechanisms and to deepen our understanding of the internationalization of SOEs.
By reviewing the literature on the institutional boundaries that shape the environmental activities of firms at home and abroad, the authors highlight the need for a comprehensive understanding of this topic.
They develop a compelling argument on the influence of home country institutions and internationalization on the role of SOEs in the global climate agenda, emphasizing the urgency and relevance of this research.
The Findings of the Study
In this study, the authors elaborate on the SOEs’ climate action matrix and offer three propositions based on the fact that the interests of the state drive SOEs’ environmental strategies as owners and the scope of SOEs’ internationalization.
First, the authors propose that the home country’s climate policy ambition level explains SOEs’ stance on climate action.
Second, the scope of internationalization explains SOEs’ stance on climate action. Third, the progressive/increasing involvement of SOEs in climate action enhances the country’s climate stance.
How can the climate argument be incorporated into international business?
The authors introduce a novel approach, incorporating the climate argument into international business (IB) studies of SOEs’ internationalization.
This innovative perspective advances our understanding of corporate climate action and stimulates further research and policy discussions. The authors advocate for a dynamic and reciprocal relationship between home/host countries and SOEs’ climate engagement, a concept that challenges traditional views and opens new avenues for exploration.
In this way, the authors contribute to the IB research and policy agenda by exploring SOEs’ unique role in advancing the global climate agenda.
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