State Capitalism, Crises, and Firms: Past, Present, and Future

Abstract

Crisis situations, which may range from natural disasters to military conflicts, from stock market crashes to life-threatening diseases, frequently trigger state interventions that can be described as using tools of state capitalism. State control over firms in crisis situations deserves a separate analysis because what has been written about the costs and benefits of state control under “normal” conditions does not necessarily apply when we consider state control over firms in crisis situations. In particular, it is important to explore to what extent the existing theories about the implications of state control are applicable in crisis situations. Recent studies have explored how state ownership of firms is associated with their corporate governance, social responsibility, internationalization, non-market strategies, etc. In this symposium, we will discuss how governance, strategies, and stakeholder relationships of state-controlled firms have been affected by crisis situations in the past and what lessons can be derived from these experiences for the future.