Bribery in MNEs: The Dynamics of Corruption Culture Distance and Organizational Distance to Core Values

Vijay S. Sampath () and Noushi Rahman ()
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Vijay S. Sampath: City University of New York
Noushi Rahman: Pace University

Journal of Business Ethics, 2019, vol. 159, issue 3, No 13, 817-835

Abstract: Abstract We examine how corporate bribery is impacted by cultural distance between multinational enterprises (MNEs) home and host countries, and organizational distance to core values between MNE entry modes and MNE headquarters. Tension between external and internal legitimacy helps to explain why cultural and organizational distances will affect MNE bribery. The empirical analysis used data from cross-border transactions by MNEs that were sanctioned by US regulatory officials between 1978 and 2011. We find statistical support for all hypotheses capturing main and moderating effects and suggest that MNEs may be seriously risking their legitimacies from transactions in corruption-prone host countries.

Keywords: Corruption culture distance; Ethical codes of conduct; Legitimacy; Multinationals; Organizational distance (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (8)

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DOI: 10.1007/s10551-018-3827-0

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