State-owned Corporations Research Articles

Strategy implementation practices and Performance of State Corporations: Case of National Health Insurance Fund, Nairobi City County, Kenya

Many organizations in developed and developing countries and more specifically in Kenya are striving to perform, it is noted that issues of strategy implementation has continued to be uncertain in the Kenyan public sector. Many state-owned corporations are grappling with management problems which have led to their poor performance outcome. The National Health Insurance Fund is a state corporation through National Health Insurance Fund Act No. 9 of 1998. The Fund’s core mandate is to provide social medical insurance cover to all its members and their declared dependents (spouse and children). But according to National Health Insurance Fund Performance Report 2017- 2018, the National Health Insurance Fund has continued to implement social health strategies with a view to achieving Universal Health Coverage for the benefit of all Kenyans. The aim of the study was to examine the strategy implementation practices influencing the performance of state corporations in Kenya, specifically the National Hospital Insurance Fund. The study was grounded on Organizational Higgins’s Eight S Model, the Balanced Scorecard model, and Resource Based View theory. The study employed a descriptive research design. The study population consisted of 411 employees, managers, and patients from the National Health Insurance Fund headquarters. Questionnaires were used to collect primary data, and a pilot test was performed to assess the reliability and validity of the questionnaire. Cronbach’s Alpha coefficient was employed to determine the reliability of the research instrument. Data analysis involved the use of descriptive statistics, supported by the Statistical Package for Social Sciences (SPSS), to calculate frequencies, percentages, means, and standard deviations. A Multiple Linear Regression model was used to determine the influence of independent variables on the dependent variable. The study findings revealed that technological innovation, strategic resource planning, strategic leadership and strategy monitoring had positive and significant effects on the performance of the National Health Insurance Fund in Kenya. This study concluded that strategy implementation factors, including technological innovation, strategic resource planning, strategic leadership, and strategy monitoring, play a significant role in firm performance. The study recommends that the management of the organization should emphasize strategy implementation to improve the performance of their organization. Additionally, continuous investment in technological innovation, effective strategic resource planning, strategic leadership development, and robust strategy monitoring practices should be prioritized to enhance overall organizational performance.

Urban state venturism or urbanization of state capital? Views from the global East

While appreciating the novelty of conceptualizing urban state venturism, this commentary proposes that the state's role as capital can be clearly evidenced by the urbanization of state capital, which involves the active deployment of state-owned corporations in the global East amid the region's pursuit of condensed and developmental urbanization and industrialization.

Comparative Study of the Regulation and Planning of National Capital Authority-Owned Enterprises in Realizing Sustainable Development of the Nusantara's Capital City

After the stipulation of Presidential Decree no. 62 of 2022 concerning the Nusantara Capital Authority, the Authority can have power over business entities which is characterized by share control and ownership of shares of a business entity so that it becomes the domain of the IKN Authority in its management. However, in reality, adequate regulations to accommodate the formation and planning of the Authority-Owned Business Entity itself are not not yet in place. This research aims to find out how business entities owned by the state capital are regulated and planned in a comparative perspective and what the ideal concept of regulation and planning of authority owned business entities is in realizing sustainable development of the Nusantara Capital City. The research used normative juridical with a statutory approach, comparative approach and conceptual approach. The research results show that the concepts of the three countries are different. The concept from Australia requires the formation of a state-owned enterprise through the law of its capital region, namely the Territorial State-owned Corporation Act 1990. Meanwhile, India uses a registration mechanism by injecting funds from the government to mark it as a government-owned company according to its level in accordance with the provisions of the Company Law of India, 2013. Then China acknowledged the existence of controlling and non-controlling shares in government control as regulated in the Law of State-owned Assets Enterprise 2018 Revision. In this case, Indonesia can adopt it by establishing an authority-owned business entity using regulations from the head of the authority that are regulatory and based on sustainable development. In this way, the next generation can experience the development results of the authority's business entities.

Influence of Organizational Security Learning Practices on Insider Security Threats in SoCs in Kenya

Insider threats have consistently been identified as key threats to State-owned Corporations and governments (SoCs). Research has shown that huge amounts of resources go towards safeguarding organizations’ assets and information systems from external threats in total disregard of potential threats from malicious and compromised insiders. Recent studies indicate that insider threats are on the rise and have cost the Kenyan economy $ 36Million USD. In addition, investigations show that these threats are increasing in scale, scope, and sophistication. The general objective of the study was to investigate on the organizational factors influencing insider security threats in State-owned Corporations in Kenya. Specifically, the study evaluated the influence of organizational security policies, organizational security learning practices and organizational communication practices on insider security threats in State-owned Corporations in Kenya. The study was anchored on the CISA Insider Threats Risk Score Model, deterrence theory, social learning theory and the communication privacy management theory. The study adopted descriptive correlational research design. The target population was 187 State-owned Corporations in Kenya. A census sampling design was used targeting the Security managers or their equivalent in SoCs. The researcher utilized a self-administered questionnaire as the data collection method. Data was analysed through quantitative techniques using the SPSS. The study established that organizational security policies have significant influence on insider security threats in SoCs in Kenya. The study also established that organizational security learning practices have significant influence on insider security threats in SoCs in Kenya. In addition, the study revealed that organizational communication practices have significant influence on insider security threats in SoCs in Kenya. The study also deduced that the combined influence of organizational security policies, learning practices and communication practices (organizational factors) significantly influence insider security threats in SoCs in Kenya. The study recommends that SoCs consider conducting a comprehensive review of their existing security policies, ensuring clarity on the severity of consequences for insider threats. Further, the study recommends that SoCs work on strengthening their learning policies to emphasize the importance of observational learning, role modeling, and positive reinforcement in the context of security awareness to address insider security threats. Additionally, the study recommends that SoCs provide training programs that emphasize effective communication practices surrounding privacy management.

On the Separation of Scientific Activity and the State-owned Corporate Form of Science Management in Contemporary Russia. Part 2

The article presents the details of ideas and proposals announced by the author in 2021 within the framework of the round table of the “Science Management: Theory and Practice” journal (on the topic “Science in an Innovative Economy”). The proposed measures are considered as increasingly relevant in the face of the long-term confrontation with the ‘collective West’, which is striving for scientific and economic isolation of contemporary Russia, as well as in relation to the national goals and objectives set by the country’s leadership for the period up to 2036. The second part of the article deals with the structural as well as administrative and legal features of the Russian science and technology complex. It numbers over four thousand organizations that carry out research and development activities in substantially separate sectors of “civil” and “defense” science. As a result, a proposal is submitted to the readers to integrate research and development that produce new fundamental scientific knowledge, end-to-end high-tech technologies and relevant intellectual activity results in the interests of socio-economic development, the national defense and security of the state in a specialized state corporation by giving it the authority to regulate scientific research and technological activities, including those in relation to the rest of the bulk of Russian research organizations of different branches. It is proposed to implement a thoroughgoing reform in the field of Russian science by adoption of appropriate new federal laws.

Public Financial Reporting Practices, Regulations and Accountability of State-Owned Corporations in Kenya

Public Financial Reporting Practices, Regulations and Accountability of State-Owned Corporations in Kenya

On the Separation of Scientific Activity and the State-owned Corporate Form of Science Management in Contemporary Russia. Part 1

The article presents the details of ideas and proposals announced by the author in 2021 within the framework of the round table of the “Science Management: Theory and Practice” journal (on the topic “Science in an Innovative Economy”). The proposed measures are considered as increasingly relevant in the face of the long-term confrontation with the ‘collective West’ which is striving for scientific and technological isolation of contemporary Russia. The first part of the article gives an overview of the developments and trends observed both among Russian researchers, including scholars in science studies, and in the field of state regulation of scientific, academic and technological activities, as well as provides a critical analysis of organizational and legal aspects and practices of interaction between models of a ‘qualified customer’ and a ‘qualified contractor’ of scientific research and development. According to the results of the analysis, the author justifies the conclusion about the need for separation of scientific activities in present-day Russia. Separation is understood as the process of concentration and rational differentiation of the proper ‘scientific’ and then scientific and technological activities from the related quasi-scientific fields. The appropriate legal and organizational measures serve as the separator (separation mechanism) in this context. It is proposed to develop and implement them in the near future with the direct participation of Russian researchers endowed with state responsibility and the appropriate powers and authority.

Nexus between Corporate Digital Transformation and Green Technological Innovation Performance: The Mediating Role of Optimizing Resource Allocation

Corporate digital transformation, as a key and representational component of the larger digital economy, plays a vital role in furthering both green technological innovation and the transition to a more sustainable economic model. This study collects panel data relating to firms listed on China’s A-share exchanges from 2009 to 2020 and employs textual analysis to estimate the extent of digital transformation within these organizations. It methodically examines the influence of this transformation on the volume and quality of green technological innovations. The findings reveal a substantial enhancement in both the volume and quality of green technological innovations as a result of corporate digital transformation, with a more noticeable improvement in innovation quality. This transition, driven by the mediating function of optimizing resource allocation, facilitates green technological innovation by enhancing human capital composition, curtailing information asymmetry, and augmenting investment in research and development (R&D). Heterogeneity research shows that the influence of digital transformation on green technological innovation is more pronounced in state-owned corporations, low-pollution corporations, and corporations situated in low-carbon pilot cities. Furthermore, this study discovers that the promotive influence of corporate digital transformation tends to diminish with the advancement of the corporation’s lifecycle, peaking during the growth phase. Finally, this study still has some limitations, such as its exclusive focus on Chinese corporations, the need for improvements in the measurement of digital transformation, and potential sample selection biases.

The Determinant of Audit Delay

This study sought to ascertain and evaluate the impact of proximity to one another, audit committee financial expertise, CEO duality, and the nature of firm activities on the audit delay of state-owned corporations listed on the Indonesia Stock Exchange. In this study, a sample of state-owned businesses was chosen through the use of multiple regression as an analytical technique in conjunction with purposive sampling. The findings revealed that while audit committee expertise had no significant impact on audit delay and that CEO duality had a substantial positive impact, geographic proximity and the nature of the company's activity variables had a significant negative impact on audit time.

Corporate green technology innovation under external pressure: a public and media perspective

The presence of external environmental constraints has the potential to impact corporate decision-making behavior regarding production and spur innovative activities. This study focuses on a sample of Chinese A-share-listed corporations to investigate the influence of public environmental concerns (PEC) on corporate green technology innovation (GTI) within the framework of public participation in environmental governance. Moreover, this study explores the synergistic effects of media concerns and PEC. The main conclusions of this study are as follows: (1) PEC is a driving force for corporate GTI. Endogeneity and robustness tests support this finding. (2) Government environmental regulation and corporate environmental responsibility are critical mediating variables. (3) Heterogeneity analysis shows that PEC significantly impacts the GTI of state-owned corporations, high-tech corporations, and corporations that have obtained ISO 14001 certification. (4) Media concerns enhance GTI and exhibit a strong synergistic effect with PEC. Positive media news strengthens the “incentive effect” of PEC, while negative news plays a “pushing role.” This study provides theoretical and empirical support for constructing an environmental governance mechanism for the public, media, corporations, and government.

The impact of digital transformation on enterprise green innovation

China's economic development is faced with serious resource limits, environmental constraints, and massive energy consumption. Changing the development mode towards green and low-carbon development is urgent. Green innovation is an important path for the sustainable development of China's economy. We use panel data of China's A-share listed corporations from 2010 to 2020 to empirically test the impact and mechanism of digital transformation on corporate green innovation. We find that digital transformation has a statistically significant, positive impact on corporate green innovation. Further, digital transformation is conducive to promoting corporate green innovation. The intrinsic mechanism shows that the mediation mechanism between corporate research and development (R&D) investment and government green subsidies is significant, and digital transformation can promote corporate green innovation by increasing corporate R&D investment and government green subsidies. The heterogeneous effect suggests that the impact of digital transformation on green innovation of state-owned corporations is greater than that of non-state-owned corporations. Additionally, the impact on large-scale corporations is greater than that of small-scale corporations, and that of corporations in areas with a higher degree of marketization is greater than that of corporations in areas with a lower degree of marketization.

Corporate Social Responsibility (CSR) Present for the Nation Program in Indonesia: Content Analysis on the Official Website of Four State-owned Corporations in Indonesia

The Corporate Social Responsibility (CSR) program’s design dynamics of creativity continue to evolve across concepts and goals. This design was made in response to the broader community’s growing interest and its larger contributions to the nation and state. This study focuses on how state defense values are the basis of CSR activities for the “State-owned Enterprises Present for the Nation” program in increasing nationalism in five own state corporations that actively participate in the program. On the official websites of the companies, a content analysis approach is applied as the study methodology. This study analyzes how CSR news makes the values of state defense the basis of CSR activities in increasing nationalism. A value analysis of how CSR activities are implemented and the ability to implement CSR is based on the country’s value of the essential elements of the defense. The purpose of this research is to search the concept of state defense values in CSR practices on five state-owned corporations. The data is processed and analyzed to determine the content of state defense value in the CSR implementation and practice that is used as the basis of CSR activities on state corporations in Indonesia.

Inherent mechanism of digital technology application empowered corporate green innovation: Based on resource allocation perspective

Confronted with the treacherous digital wave and the aggressive environmental challenges, digital technology and green innovation are becoming critical tools for corporations to secure a sustainable advantage. The significance of identifying the role of digital technology application on corporate green innovation has been widely debated in the extant literature. Nevertheless, few researchers have investigated the inherent mechanism between them from the resource allocation perspective. From this research gap, we construct a theoretical model of the inherent mechanism by which digital technology application affects corporate green innovation, validate it using listed corporations in China from 2011 to 2020, and further investigate the differences in their inherent mechanism triggered by property rights and industry competition. We found that digital technology application is effective in promoting corporate green innovation. Stronger green innovation effect of digital technology application in state-owned corporations and those in highly competitive industries. The inherent mechanism between them manifest in optimizing the allocation of conventional labor, expanding the scale of non-conventional labor, and enhancing investment in R&D and digital infrastructure capital. We further explored that the impact of applying digital technology to optimize conventional labor allocation, expand non-conventional labor scale, and enhance investment in R&D and digital infrastructure capital is stronger for corporations in highly competitive industries than those in lowly competitive industries. The difference is that the role of the digital technology application in boosting capital investment in R&D does not differ across corporations with different property rights. Findings provide theoretical and empirical evidence on effectively developing the digital technology application's green innovative effects.

CSR Program Social Return on Investment Analysis Case Study: PT PLN Indonesia Power PLTGU Cilegon OMU

Responsibility and sustainability play a larger role in the activities of global businesses. The practice of Corporate Social Responsibility (CSR) can be used to promote more responsible and sustainable behavior. PT PLN Indonesia Power PLTGU Cilegon OMU is a sub holding of an Indonesian state-owned corporation committed to fostering a responsible and sustainable culture through CSR. The old CSR program in Margasari village, the company’s first ring area, must be replaced because it has come to its exit time. Based on the Social Mapping Document 2022 and interviews, a SWOT analysis is conducted taking into account the current situation of the community. The analysis indicates that a new sewing group named Pujasari could be implemented as the new CSR program in the village of Margasari. Nevertheless, since a CSR program is a social investment, the company must be confident in the program’s future return for the community. This study aims to determine the program’s economic feasibility, Social Return on Investment (SROI) value, variables that may influence SROI achievement, and contribution to the Sustainable Development Goals (SDGs). In calculating SROI, the triple bottom line concept will be used, while the economic feasibility will use capital budgeting method. A sensitivity analysis will be conducted to determine the critical variable for achieving SROI. The study demonstrates that the calculation utilizing the triple bottom line concept (considering economic, social, and environmental benefit) over a 5-year project period yields an NPV of IDR 1,988 mio, an IRR of 109%, with a WACC of 13.349%. The program’s SROI is 20.39, indicating that for every IDR 1 invested by the company in this program, IDR 20.39 in social benefit will be generated. Analysis of sensitivity reveals that WACC, the selling price of rags, working productivity, and price of rag primary materials are, in order, the most sensitive variables affecting the project’s SROI value. In addition, the program demonstrates contribution to SDGs 1, 5, 8, 12, and 13.

How does carbon regulatory policy affect debt financing costs? Empirical evidence from China

This study aimed to examine the effect of Chinese carbon regulatory policy on the debt financing costs of carbon-intensive corporations. We use a large sample covering the years between 2005 and 2018. The results of the difference-in-differences approach show that creditors increased debt financing costs for carbon-intensive corporations considerably due to the low-carbon policy, hence decreasing these corporations' profitability and value. Additional analyses show that the dynamic policy effect gradually increased from 2010 on and weakened later in 2015 owing to China's economic slowdown and the local stock market crash. The impacts of low-carbon policies on corporate debt financing costs are more pronounced for state-owned corporations and those with low analyst followings. Our findings provide corporations and governments with crucial insights into mitigating climate transition risk.

Low Carbon City Pilot Policy and Corporate Innovation

The "Double Carbon" target cannot be achieved without energy saving and carbon reduction in urban units, and corporate innovation is indispensable for cities to achieve energy saving and carbon reduction. Based on the data of Chinese A-share firms listed on Shanghai and Shen Stock Exchange over the period of 2007–2020, this paper explores the impact of low-carbon city pilot policies on enterprise innovation using the DDD method, and further refines the substantive and strategic aspects of the impact on enterprise innovation, and explores the heterogeneity of enterprise ownership nature and size. The study finds that, first, the pilot low-carbon city policy significantly promotes corporate innovation and has a slightly higher positive incentive effect on substantive innovation than strategic innovation. Second, non-state corporations and large-scale corporations tend to enhance substantive innovation while state-owned corporations and small-scale corporations tend to engage in strategic innovation activities as a result of the pilot policy.

How Do State-Owned and Private-Owned CVC Differ in Nurturing Innovation in China?

We investigate how state-owned corporate venture capital differs from privately owned corporate venture capital in fostering innovation among startups. Based on the data of Chinese A-share listed companies and the startups in their portfolios that they invested in between 2009 and 2018, we find that startups backed by state-owned corporate venture capital are less innovative than startups backed by privately owned corporate venture capital. Using a two-stage least-squares analysis yields the same results. Further, we find evidence consistent with two potential mechanisms: Investors of state-owned corporate venture capital provide weaker technical support and are less tolerant of failure. These results have important implications for stakeholders, management, and policy makers who care about incentivizing young and rapidly growing companies to innovate more effectively.

Data-Mining as Tool of Multimodal Business-Analysis: Lexical Transformation in Annual Reports of Rostech Corporation

The goal of the research is to study tools of Data Mining to find latent nature of lexical transformation in annual reports of the state-owned corporation ‘Rosteck’ and to estimate perspectives of extending methodology of businessanalysis by tools of multimodal business-analysis. Identification of trends in vocabulary transformation in annual reports was done by finding indicator features of unique key lexical units and their contexts. The author used methods of multimodal business-analysis and tools of Data Mining to study corporate reports in order to identify the most important signs and trends in business-vocabulary transformation at enterprises and corporations, which is usually ignored by conventional business-analysis. Russian texts of annual reports of ‘Rosteck’ corporation for 2017– 2021 act as initial data for the research. As Data Mining tools the author used Workflow-model on the on-line platform for analysis and data visualization Orange Data Mining 3.3.2. The research showed a clear trend to renewal of the annual report content within the period of analysis. Such units as ‘работник’ (worker), ‘обучение’ (training), ‘платформа’ (platform), ‘трансформация’ (transformation), ‘инициатива’ (initiative) and ‘академия’ (academy) demonstrated maximum dynamics in frequency growth. Context analysis allowed the author to draw a conclusion that transformation in business vocabulary is based on the growing attention of the corporation to problems of digital transformation, development of digital platforms, realization of technological and socio-humanitarian strategic initiatives, raising the quality of workers’ qualification by training in corporate net academy. Implementation of these measures requires upgrading strategy of managing finance, corruption, market and other risks. Multimodal business-analysis is a promising trend in academic research and a tool for resolving applied economic and organizational-managerial problems.

Do Fiscal Environmental Protection Expenditures Crowd Out Corporate Environmental Protection Investments?

This research investigates how fiscal environmental expenditures impact corporate environmental investments and whether corporations act as free-riders. Using a sample of 1688 firm-year observations from 2008 to 2019 in the Chinese context, we observe that fiscal environmental expenditures have a significantly negative “crowding-out” effect on corporate green investments, which is mediated by the disclosure of pollution emissions. Additionally, a heterogeneity analysis reveals that this negative impact is more pronounced for non-heavily polluted and state-owned corporations and corporations located in three major agglomerations. This finding remains robust when employing an instrumental variable approach to address potential endogeneity. Our study contributes to the current literature by providing new insights regarding government environmental protection behaviors’ impacts on corporate green behaviors. The study also provides insights for policymakers to focus more on light-polluting corporations and state-owned corporations, because they have more chances to avoid environmental responsibilities.

Market misvaluation and corporate innovation: “Catering” or “risk aversion”?—Empirical evidence from China capital market

This paper tests how market misvaluation affects corporate innovation. Unlike the “catering effect” observed in the US, we find that estimated stock overvaluation in China is strongly negatively associated with corporate innovation, conforming to our “risk-aversion” hypothesis. In China, misvaluation affects innovation via finance and management behavior channels. The effect is more significant in non-state-owned corporations than in state-owned corporations. Stock turnover rate and ownership concentration play moderating roles in the effect. The evidence sheds light on the relationship between market risks and corporate innovation in an emerging market.