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Corruption in international business

Published on Jan 1, 2016in Journal of World Business
· DOI :10.1016/j.jwb.2015.08.015
Alvaro Cuervo-Cazurra33
Estimated H-index: 33
(NU: Northeastern University)
Sources
Abstract
I analyze corruption in international business, presenting a critical assessment of the topic and providing suggestions for future research. I argue that corruption creates a laboratory for expanding international business studies because its illegal nature, the differences in perception about illegality, and the variation in the enforcement of laws against bribery across countries challenge some of the assumptions upon which arguments have been built, i.e., that managers can choose appropriate actions without major legal implications. Hence, I first provide suggestion for how to analyze the topic of corruption in future studies by analyzing the types, measures, causes, consequences, and controls of corruption. I then provide suggestions for how to extend leading theories of the firm by using corruption as a laboratory that challenges some of the assumptions of these theories: extending agency theory by analyzing the existence of unethical agency relationships; extending transaction cost economics by analyzing illegal transaction costs minimization; extending the resource-based view by studying corporate social irresponsibility capability; extending resource dependency by analyzing the ethical power escape; and extending neo-institutional theory by studying illegal legitimacy.
  • References (132)
  • Citations (67)
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References132
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#1Alvaro Cuervo-Cazurra (NU: Northeastern University)H-Index: 33
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#1Alvaro Cuervo-Cazurra (NU: Northeastern University)H-Index: 33
#2Andrew C. Inkpen (ASU: Arizona State University)H-Index: 36
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#1Andreas P. Petrou (CUT: Cyprus University of Technology)H-Index: 7
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Abstract This paper identifies national corruption as a determinant of international banking. Using total international banking claims of 21 countries from worldwide borrowers, at the bilateral lender-borrower level, we document that when lender countries are less corrupt than borrower countries, international banking volume tends to be higher between countries with similar corruption levels. In contrast, when lender countries are more corrupt than borrower countries, corruption difference has n...
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The link between corruption and firm performance has received considerable critical attention. However, until now, far too little attention has been paid to different dimensions of corruption and their relationship with firm performance. The aim of this paper is, therefore, to examine the relationship between dimensions of corruption and firm productivity.,This paper uses the fifth wave of Business Environment and Enterprise Performance Survey, which is based on the survey questionnaire with sen...
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