Navigating Dual Logics: The Role of Party Organizations in Chinese State-Owned Enterprises’ Operations in Papua New Guinea

Author

Betty Wakia


Abstract

 This article examines the role of Party organizations within Chinese State-Owned Enterprises (SOEs) as they manage commercial and political demands in Papua New Guinea (PNG). The analysis uses concepts of dual logics and embeddedness. Party organizations act as hybrid mechanisms. Their purpose is to achieve profit targets and state strategic goals at the same time. Case studies from PNG’s resource and infrastructure sectors form the evidence. These include the Ramu Nickel project by MCC, the Ramu 2 Hydropower project by Shenzhen Energy, and various infrastructure works by China Wuyi. The paper explores a central question. It asks how Party organizations mediate between political expectations from China and the operational realities within PNG. Three key functions are identified. The first is internal governance and compliance enforcement. The second involves managing relationships with stakeholders. The third function is crisis mitigation. Findings show these organizations act as boundary-spanning institutions. They help secure operational legitimacy for the firms. They also advance China’s broader geopolitical interests. Significant challenges exist, however. Failures in environmental compliance and tensions with local communities are documented. These problems reveal clear limits. The influence of Party organizations can be constrained in overseas settings. The study contributes to literature on SOE internationalization. It clarifies the micro-level institutional mechanisms at work. These mechanisms allow firms to operate in complex transnational spaces.



Keywords

State-Owned Enterprises, Party Organizations, Dual Logics, Papua New Guinea, Chinese Investment



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References


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