Journal of Modern Science (Dec 2024)
Strategic Polish State Enterprise (SOE) on the list of the largest European companies
Abstract
Objectives In 2023, only eight Polish enterprises were listed on the Fortune Europe 500, of which seven were classified as State-Owned Enterprises (SOEs). They ranked quite low on the list. The article aims to identify the crucial factors influencing the economic potential of strategic SOEs in Poland. The underlying thesis is that foreign expansion is key to potential growth and establishing a strong position in the international market, while path dependence acts as a barrier by "trapping" these enterprises. Material and methods The study is based on the Orbis database, WIG20 data, and the financial statements of SOEs. These sources formed the basis for assessing: 1) the position of Polish SOEs among the companies listed on the WSE WIG20, 2) a synthetic indicator of the economic potential (di) constructed using the taxonomic development pattern method, and 3) the scope of foreign expansion of SOEs, measured by the international footprint (IF). Results Research shows that Polish strategic SOEs are focused on the domestic market. The low scale of foreign expansion is explained by the concept of path dependence, including political goals with no push factors. KGHM and PKN Orlen stand out positively as companies with high economic potential and a relatively significant international footprint for Polish conditions. Conclusions The lack of confrontation with external competitors and the privileged position of Polish strategic SOEs in the domestic market may lead to lower efficiency and innovation. Future research should focus on finding connections between: - the goals of internationalization of SOEs and their international competitiveness in the socio-economic and industrial dimension. - changes in the institutional environment of SOEs, corporate governance and the scope of state control and their foreign expansion.
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