Bribery in emerging economies: an integration of institutional and non-market position perspective

Jiangyong Lu (), Seong-jin Choi (), Alfredo Jiménez () and Secil Bayraktar ()
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Jiangyong Lu: Peking University
Seong-jin Choi: Hanyang University
Alfredo Jiménez: KEDGE Business School
Secil Bayraktar: TBS Business School

Asia Pacific Journal of Management, 2023, vol. 40, issue 1, No 8, 205-242

Abstract: Abstract In this paper we build on the residual control theory and examine the interdependence of countries’ institutional environment and firms’ nonmarket positions towards firm corruption. Based on World Bank data from emerging economies spanning from 2006 to 2018, we find that the interaction between lower quality market-supporting institutions and firm’s weaker positions makes firms more vulnerable to bribery requests, consequently leading to their involvement in bribery. This mediated interaction effect occurs due to the interplay between the demand- and supply-side of corruption, highlighting how firms’ relative nonmarket positions and the institutional context jointly shape the firms’ incentive for bribery activities.

Keywords: Firm corruption; Residual control theory; Nonmarket position; Institutions (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10490-021-09782-w

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