Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • Article
  • Journal of International Business Studies

Toward Resource Independence—Why State-Owned Entities Become Multinationals: An Empirical Study of India's Public R&D Laboratories

By: Prithwiraj Choudhury and Tarun Khanna
  • Format:Print
ShareBar

Abstract

In this paper, we build on the standard resource dependence theory and its departure suggested by Vernon to offer a novel explanation for why state-owned entities (SOEs) might seek a global footprint and global cash flows: to achieve resource independence from other state actors. In the context of state-owned entities, the power-use hypothesis of standard resource dependence theory can be used to analyze the dependence of SOEs on other state actors, such as government ministries and government agencies that have ownership and control rights in the SOE. Building on Vernon, we argue that the SOE can break free from this power imbalance and establish resource independence from other state actors by becoming a multinational firm and/or by generating global cash flows. We leverage a natural experiment in India and outline both quantitative and qualitative evidence from 42 Indian state-owned laboratories to support this argument.

Keywords

Multinational Firms and Management; Resource Allocation; Supply Chain; State Ownership; Growth and Development Strategy; India

Citation

Choudhury, Prithwiraj, and Tarun Khanna. "Toward Resource Independence—Why State-Owned Entities Become Multinationals: An Empirical Study of India's Public R&D Laboratories." Special Issue on Governments as Owners: Globalizing State-Owned Enterprises edited by Alvaro Cuervo-Cazurra, Andrew Inkpen, Aldo Musacchio and Kannan Ramaswamy. Journal of International Business Studies 45, no. 8 (October–November 2014): 943–960.
  • Find it at Harvard
  • Purchase

About The Authors

Prithwiraj Choudhury

Technology and Operations Management
→More Publications

Tarun Khanna

Strategy
→More Publications

More from the Authors

    • April 2025
    • Faculty Research

    Aramco: Navigating the Energy Transition

    By: Tarun Khanna and Samir Junnarkar
    • 2025
    • Faculty Research

    The World Is Your Office: How Work from Anywhere Boosts Talent, Productivity, and Innovation

    By: Prithwiraj Choudhury
    • March 2025
    • Faculty Research

    Gavi and the 'Next' Pandemic

    By: Tarun Khanna and Samir Junnarkar
More from the Authors
  • Aramco: Navigating the Energy Transition By: Tarun Khanna and Samir Junnarkar
  • The World Is Your Office: How Work from Anywhere Boosts Talent, Productivity, and Innovation By: Prithwiraj Choudhury
  • Gavi and the 'Next' Pandemic By: Tarun Khanna and Samir Junnarkar
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College.