China's 'Steel Hunger': A Comparative Analysis of SOE and NSOE Internationalization Motivations and Attitudes towards Risk

  • Monica Ren Macquarie University
  • Robert Jack Macquarie University


In this paper, we present two exploratory case studies’ detailing the internationalisation of a Chinese mining, state-owned enterprise (SOE) and a non-state-owned enterprise (NSOE). Increasing outward foreign direct investment (OFDI) from China’s extractive industries, particularly its steel sector, is now one of the more dramatic aspects of globalisation in the new millennium. It has led to an increased interest in what motivates these firms and how their internationalisation may be shaped by the risks inherent in their pursuit of international expansion. In the study 13 face-to-face interviews are conducted with both senior and functional level managers across both firm types. This data analysis reveals that institutional factors and significant international experience influences SOEs to be ‘risk tolerating’ while influencing NSOEs to be ‘risk averse’. This paper offers a set of propositions that highlight how motivations and risk attitudes are shaped by firm ownership and institutional factors, which ultimately influence the location choice for each firm. Keywords: State-Owned Enterprises (SOEs), Non-State-Owned Enterprises (NSOEs), Steel, China, Internationalization Motivations, Motivations, Risk To cite this document: Monica Ren and Robert Jack, "China's 'Steel Hunger': A Comparative Analysis of SOE and NSOE Internationalization Motivations and Attitudes towards Risk", Contemporary Management Research, Vol.10, No.4, pp.325-352, 2014. Permanent link to this document:

Author Biography

Monica Ren, Macquarie University
Monica Ren is an Australian citizen expecting her PhD to be completed from Macquarie University. She is currently an associate lecturer at Macquarie University, Sydney, Australia. Her current research interests lie in the areas of emerging MNE's internationalization, Chinese firms' OFDI , mining firms' internationalization, trust, upper echelons theory, and qualitative research methodology. She can be contacted at