Country level corruption as a liability of foreignness: Effects on staffing, incentives, and activities

John M. Mezias, Stephen J. Mezias

Research output: Contribution to journalArticle

8 Scopus citations

Abstract

Past research examining country-level corruption found that corruption reduces foreign direct investment. However, this research lacks implications for multinational corporations considering operating in high corruption countries. Recent international research has examined subsidiary challenges beyond initial investment decisions, but has not addressed operational challenges posed by corruption. Research investigating country-level corruption as a liability of foreignness (LOF) is needed because this theoretical perspective specifically examines mechanisms for managing and controlling subsidiaries. This paper utilizes the LOF perspective, integrating learning, international human resource management, and agency theories, to understand how corruption affects subsidiary adaptation strategies.

Original languageEnglish (US)
Pages (from-to)267-291
Number of pages25
JournalAdvances in International Management
Volume23
DOIs
StatePublished - Dec 1 2010
Externally publishedYes

ASJC Scopus subject areas

  • Business and International Management

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