Mixed-ownership state-owned enterprises (SOEs) make strategic choices within a governance system shaped by competing shareholders, resource dependence, and institutional legitimacy. Drawing on an attention-based explanation, we argue that relative ownership balance is associated with digitalization–strategic orientation in mixed-ownership SOEs. We further argue that this association depends on system conditions, particularly firms’ dependence on state-linked resources and the broader legitimacy of digitalization in the institutional environment. Using panel data from Chinese listed manufacturing SOEs from 2009 to 2019, we find that greater equity balance is associated with stronger digitalization–strategic orientation. This association is strengthened when digitalization is more institutionally legitimate within the industry, whereas the evidence for the moderating role of subsidy is weaker and suggestive. This study contributes to research on minority shareholder influence, offers evidence consistent with an attention-based explanation of strategic prioritization, and shows that digitalization in SOEs is shaped not only by capabilities, incentives, or external pressure, but also by governance contestation within a broader institutional environment.
Wang et al. (Thu,) studied this question.