Dynamics of business politics: Evidence from Chinese firm internationalisation to Brazil

This dissertation addresses the role of business politics in the context of Chinese state-owned multinationals by analyzing the emergence and consolidation of a state-owned energy company and its internationalisation to Brazil. The single case study traces the corporate evolution from its initial emergence in 2002 as a consequence of China's power sector reforms to its operations in Brazil in 2016. The findings build on more than three years of field research - including interviews in electricity supply sectors in Brazil and China - as well as extensive analysis of archival and government documents. Using an institutionalist approach, the dissertation identifies that business politics is an important resource to help the company gain competitive advantage. In China, where the company's institutional embeddedness was strong, the company developed the ability to pursue its industrial and internationalisation agenda with relative autonomy, albeit confined to the state-business relations. In Brazil, where its institutional embeddedness was weak, it depended on comparative economic advantage, such as low-cost bidding, technology knowledge transfer, and comparative political advantage, such as diplomatic support. As a result, the case study shows that the firm is able to incrementally build on existing strengths and industrial capabilities to participate in the Brazilian energy sector, while simultaneously consolidating its domestic position in China. In addition to contributing to the literature on the relationship between state-owned enterprises and the state, the study contributes to broader debates about the differences in state-business relations, the political origins of corporate decisions, and industrial upgrading in emerging economies