Corruption Control, High-Tech Acquisitions, and the Role of Power Distance

Viet Anh Hoang, Hong An Thai, Phuong Uyen Le, Thanh Huong Nguyen and Man Dang

SAGE Open, 2025, vol. 15, issue 1, 21582440251323664

Abstract: This study investigates how corruption control influences the choice between high-tech and non-high-tech acquisition targets, using international data from 2000 to 2019. Grounded in the institutional theory and transaction cost economics, we hypothesize that stronger corruption control reduces transaction risks, making high-tech acquisitions more attractive. Our findings confirm a positive relationship between corruption control and high-tech acquisitions, but document an inverted U-shaped effect, indicating that beyond a certain threshold, the regulatory burden may deter high-tech investments. Further, we find that cultural distance shapes acquisition outcomes, reinforcing the cross-cultural management theory that power distance moderates the positive relationship between corruption control and high-tech acquisitions. The study contributes to the literature by highlighting the importance of institutional quality in shaping sector-specific acquisition strategies and offers practical implications for managers and policymakers.

Keywords: Acquisitions; control of corruption; power distance; transparency; high-tech (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:15:y:2025:i:1:p:21582440251323664

DOI: 10.1177/21582440251323664

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