How much state ownership do hybrid firms need for better performance?

Nguyen, B, Do, H ORCID: https://orcid.org/0000-0001-5442-507X and Le, C, 2021. How much state ownership do hybrid firms need for better performance? Small Business Economics. ISSN 0921-898X

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Abstract

Hybrid ownership-sharing partial business ownership with the state-is a new form of political connections that entrepreneurs in developing countries may employ to improve their access to key resources. This study investigates hybrid ownership as a strategic decision of entrepreneurs running small businesses in Vietnam-a transition economy. Utilising the resource dependence theory and legitimacy viewpoint, we propose and evidently show that increased state ownership in hybrid firms leads to improved performance. However, increasing state ownership beyond a minority share threshold harms firm performance due to the presence of agency costs. Also, the involvement of the state in firm governance reduces the benefits gained from having state ownership.

Item Type:	Journal article
Publication Title:	Small Business Economics
Creators:	Nguyen, B., Do, H. and Le, C.
Publisher:	Springer
Date:	28 October 2021
ISSN:	0921-898X
Identifiers:	Number Type 10.1007/s11187-021-00556-8 DOI 1460544 Other
Divisions:	Schools > Nottingham Business School
Record created by:	Linda Sullivan
Date Added:	19 Aug 2021 09:38
Last Modified:	28 Oct 2022 03:00
URI:	https://irep.ntu.ac.uk/id/eprint/44065

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