Table 5. Key assumptions, relevant... | Emerald Publishing

Table 5.

Key assumptions, relevant highlights and quotes

Assumptions related to speed and focus of internationalization process	Relevant highlights obtained from cases	Significant quotes from key SOEs’ executives
Speed CSOEs: Non-market driven and sudden internationalization explained by political and ideological needs produced outside the firm	The lack of oil in Chile has been a key driver for the international expansion of ENAP. The central State also defined the reversal in the internationalization process The Argentine State has widely and repeatedly used YPF for political purposes. The international retraction was a consequence of the sale and then nationalization of the company Ecopetrol’s recent international retraction is connected to the State urge to get funds	“ENAP has been able to expand and get a debt significantly greater than its EBITDA because it has the support of the Chilean State ([…]) the indirect subsidy to the company comes through its CAPEX that is never paid” (Cruzat, interviewed on 3rd December 2018) “During the time that Ecopetrol internationalized there was a reduction in the national reserves of oil and it would become difficult in the middle-term to supply the local needs … it was this fact what encouraged the internationalization of the company” (Gutierrez Pemberthy, interviewed on 27th July, 2021)
Speed SSOEs: The international expansion follows a market-driven and gradual internationalization	INVAP’s first international experience was in the 1970s and it has continued in a gradual organic mood. It has done so without State financial support EPM developed a master plan for their internationalization. First experiences have been used to take additional knowledge for the next acquisitions	INVAP works and has a culture similar to a private firm ([…]) one of the most critical part of INVAP is their sales department, which operates like a private firm ([…]) none of the other SOEs under my jurisdiction are like that (Gadano, interviewed on 11th September 2018) EPM developed a master plan for their organic expansion at the beginning of the international expansion that it has been followed through (Jaramillo, interviewed on 18th December, 2018)
Focus SSOEs: Need to increase revenues encourages diversification abroad	INVAP has three different activities abroad (nuclear reactors, medical devices, satellites) EPM has had four different activities abroad (water treatment, electricity, alternative energy and telecommunications)	We expect EPM to develop new activities that complement the ones we have (Jaramillo, interviewed on 18th December, 2018)
Focus CSOEs: The Central States are conservative regarding strategies disrupting their initial geopolitical goals, and thus they do not usually expand into new sectors abroad	Both ENAP, Ecopetrol and YPF have had all their international investments in the oil sector. Almost exclusive focus in upstream oil production	‘During the 1990s all of YPF’s focus was in consolidating the acquired assets abroad’ (Sturzenegger, interview on 27th January, 2021) “The diversification strategy of Ecopetrol consists on selling our oil to different regions … we have created more value thanks to the diversification of the places we sell” (Barcena, interview on 6th July, 2021) “The priority in the internationalization has been to increase the oil reserves … for Ecopetrol it does not make much sense to expand on other sectors such as midstream or downstream” (Gutierrez Pemberthy, interviewed on 27th July, 2021)

Assumptions related to speed and focus of internationalization process	Relevant highlights obtained from cases	Significant quotes from key SOEs’ executives
Speed CSOEs:Non-market driven and sudden internationalization explained by political and ideological needs produced outside the firm	The lack of oil in Chile has been a key driver for the international expansion of ENAP. The central State also defined the reversal in the internationalization processThe Argentine State has widely and repeatedly used YPF for political purposes. The international retraction was a consequence of the sale and then nationalization of the companyEcopetrol’s recent international retraction is connected to the State urge to get funds	“ENAP has been able to expand and get a debt significantly greater than its EBITDA because it has the support of the Chilean State ([…]) the indirect subsidy to the company comes through its CAPEX that is never paid” (Cruzat, interviewed on 3rd December 2018)“During the time that Ecopetrol internationalized there was a reduction in the national reserves of oil and it would become difficult in the middle-term to supply the local needs … it was this fact what encouraged the internationalization of the company” (Gutierrez Pemberthy, interviewed on 27th July, 2021)
Speed SSOEs:The international expansion follows a market-driven and gradual internationalization	INVAP’s first international experience was in the 1970s and it has continued in a gradual organic mood. It has done so without State financial supportEPM developed a master plan for their internationalization. First experiences have been used to take additional knowledge for the next acquisitions	INVAP works and has a culture similar to a private firm ([…]) one of the most critical part of INVAP is their sales department, which operates like a private firm ([…]) none of the other SOEs under my jurisdiction are like that (Gadano, interviewed on 11th September 2018)EPM developed a master plan for their organic expansion at the beginning of the international expansion that it has been followed through (Jaramillo, interviewed on 18th December, 2018)
Focus SSOEs:Need to increase revenues encourages diversification abroad	INVAP has three different activities abroad (nuclear reactors, medical devices, satellites)EPM has had four different activities abroad (water treatment, electricity, alternative energy and telecommunications)	We expect EPM to develop new activities that complement the ones we have (Jaramillo, interviewed on 18th December, 2018)
Focus CSOEs:The Central States are conservative regarding strategies disrupting their initial geopolitical goals, and thus they do not usually expand into new sectors abroad	Both ENAP, Ecopetrol and YPF have had all their international investments in the oil sector. Almost exclusive focus in upstream oil production	‘During the 1990s all of YPF’s focus was in consolidating the acquired assets abroad’ (Sturzenegger, interview on 27th January, 2021)“The diversification strategy of Ecopetrol consists on selling our oil to different regions … we have created more value thanks to the diversification of the places we sell” (Barcena, interview on 6th July, 2021)“The priority in the internationalization has been to increase the oil reserves … for Ecopetrol it does not make much sense to expand on other sectors such as midstream or downstream” (Gutierrez Pemberthy, interviewed on 27th July, 2021)

Source: Authors’ own construction