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

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...

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Bibliographic Details
Authors: Sampath, Vijay S. (Author) ; Rahman, Noushi (Author)
Format: Electronic Article
Language:English
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Published: Springer 2019
In: Journal of business ethics
Year: 2019, Volume: 159, Issue: 3, Pages: 817-835
Further subjects:B Ethical codes of conduct
B Multinationals
B Legitimacy
B Corruption culture distance
B Organizational distance
Online Access: Volltext (lizenzpflichtig)
Description
Summary: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.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1007/s10551-018-3827-0