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Article
Corruption as Nonmarket Strategy: Evidence from the UN Oil-for-Food Program
Academy of Management Annual Meeting Proceedings
  • Robert Weiner, George Washington University
  • Lili Yan, George Washington University
SMC Author
Lili Yan
Status
Faculty
School
School of Economics and Business Administration
Department
Organizations and Responsible Business
Document Type
Proceeding
Publication Date
1-1-2015
Description/Abstract

This paper examines the relationship between corruption and nonmarket strategy in a cross-border context, using a unique dataset with accurate, firm-specific measures of corruption. We first examine the effects of home country corruption norms on firms’ strategy to corrupt abroad. We then move beyond the institutional context to explore the rationale behind the heterogeneity among firms from the same corrupt country in compliance with host governments’ bribery request. We find that firms’ home country corruption norm is related to their decision to pay bribes abroad, and propose that firms’ past exposure to corruption develops their capability to use such experience as a resource in expanding their business abroad. This study builds on a unique dataset using the OFFP program to conduct firm analysis. It contributes to the strategy literature by connecting corruption to firms’ nonmarket capability developed through their previous experience in forming their location strategies abroad, to the international business literature by expanding the study of corruption from country level to micro level, and to the small literature using OFFP as a unique data source to study firm behaviors.

Keywords
  • Corruption,
  • Location,
  • Nonmarket strategy
Lasallian research
Yes
Scholarly
Yes
DOI
10.5465/AMBPP.2015.18936abstract
Disciplines
Original Citation

Weiner, R., & Yan, L. (2015, January). Corruption as nonmarket strategy: Evidence from the UN Oil-for-Food program. Academy of Management Proceedings, 2015, 18936. doi:10.5465/AMBPP.2015.18936abstract

Citation Information
Robert Weiner and Lili Yan. "Corruption as Nonmarket Strategy: Evidence from the UN Oil-for-Food Program" Academy of Management Annual Meeting Proceedings (2015)
Available at: http://works.bepress.com/lili-yan/1/