Political behavior, social responsibility, and perceived corruption: A structuration perspective

Research output: Contribution to journalArticle

123 Citations (Scopus)

Abstract

This study unites the three lenses - political behavior, corporate social responsibility, and corruption - and evaluates the way in which multinational enterprises (MNEs) manage political and social forces in a foreign emerging market. Using the theory of structuration as the conceptual foundation, we propose that an MNE's propensity to cooperate with the host government is positively related to its philanthropic contribution and resource accommodation, whereas its propensity to be assertive with the host government is positively associated with its emphasis on ethics and organizational credibility. We argue that when perceived corruption in the business segment increases, an MNE's propensity to cooperate and be assertive with the government decreases, its focus on ethics heightens, and its philanthropic contribution diminishes. As to the three-way interactions, when perceived corruption in the business segment increases, MNEs that focus more on ethics have a greater propensity to use arm's length bargaining to deal with the government, whereas those focusing less on ethics have a greater propensity to use social connections to deal with the government. Our analysis of sample MNEs in China generally supports these propositions.

Original languageEnglish (US)
Pages (from-to)747-766
Number of pages20
JournalJournal of International Business Studies
Volume37
Issue number6
DOIs
StatePublished - Nov 14 2006

Fingerprint

Industry
Lenses
Social responsibility
Propensity
Government
Multinational enterprises
Political behavior
Corruption
Structuration
Emerging markets
Credibility
Resources
China
Accommodation
Corporate Social Responsibility
Interaction

Keywords

  • Corruption
  • Emerging market
  • Political behavior
  • Social responsibility

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Management of Technology and Innovation
  • Strategy and Management

Cite this

Political behavior, social responsibility, and perceived corruption : A structuration perspective. / Luo, Yadong.

In: Journal of International Business Studies, Vol. 37, No. 6, 14.11.2006, p. 747-766.

Research output: Contribution to journalArticle

@article{ee8d7c12e72b4a50aed2c7b15dac9152,
title = "Political behavior, social responsibility, and perceived corruption: A structuration perspective",
abstract = "This study unites the three lenses - political behavior, corporate social responsibility, and corruption - and evaluates the way in which multinational enterprises (MNEs) manage political and social forces in a foreign emerging market. Using the theory of structuration as the conceptual foundation, we propose that an MNE's propensity to cooperate with the host government is positively related to its philanthropic contribution and resource accommodation, whereas its propensity to be assertive with the host government is positively associated with its emphasis on ethics and organizational credibility. We argue that when perceived corruption in the business segment increases, an MNE's propensity to cooperate and be assertive with the government decreases, its focus on ethics heightens, and its philanthropic contribution diminishes. As to the three-way interactions, when perceived corruption in the business segment increases, MNEs that focus more on ethics have a greater propensity to use arm's length bargaining to deal with the government, whereas those focusing less on ethics have a greater propensity to use social connections to deal with the government. Our analysis of sample MNEs in China generally supports these propositions.",
keywords = "Corruption, Emerging market, Political behavior, Social responsibility",
author = "Yadong Luo",
year = "2006",
month = "11",
day = "14",
doi = "10.1057/palgrave.jibs.8400224",
language = "English (US)",
volume = "37",
pages = "747--766",
journal = "Journal of International Business Studies",
issn = "0047-2506",
publisher = "Palgrave Macmillan Ltd.",
number = "6",

}

TY - JOUR

T1 - Political behavior, social responsibility, and perceived corruption

T2 - A structuration perspective

AU - Luo, Yadong

PY - 2006/11/14

Y1 - 2006/11/14

N2 - This study unites the three lenses - political behavior, corporate social responsibility, and corruption - and evaluates the way in which multinational enterprises (MNEs) manage political and social forces in a foreign emerging market. Using the theory of structuration as the conceptual foundation, we propose that an MNE's propensity to cooperate with the host government is positively related to its philanthropic contribution and resource accommodation, whereas its propensity to be assertive with the host government is positively associated with its emphasis on ethics and organizational credibility. We argue that when perceived corruption in the business segment increases, an MNE's propensity to cooperate and be assertive with the government decreases, its focus on ethics heightens, and its philanthropic contribution diminishes. As to the three-way interactions, when perceived corruption in the business segment increases, MNEs that focus more on ethics have a greater propensity to use arm's length bargaining to deal with the government, whereas those focusing less on ethics have a greater propensity to use social connections to deal with the government. Our analysis of sample MNEs in China generally supports these propositions.

AB - This study unites the three lenses - political behavior, corporate social responsibility, and corruption - and evaluates the way in which multinational enterprises (MNEs) manage political and social forces in a foreign emerging market. Using the theory of structuration as the conceptual foundation, we propose that an MNE's propensity to cooperate with the host government is positively related to its philanthropic contribution and resource accommodation, whereas its propensity to be assertive with the host government is positively associated with its emphasis on ethics and organizational credibility. We argue that when perceived corruption in the business segment increases, an MNE's propensity to cooperate and be assertive with the government decreases, its focus on ethics heightens, and its philanthropic contribution diminishes. As to the three-way interactions, when perceived corruption in the business segment increases, MNEs that focus more on ethics have a greater propensity to use arm's length bargaining to deal with the government, whereas those focusing less on ethics have a greater propensity to use social connections to deal with the government. Our analysis of sample MNEs in China generally supports these propositions.

KW - Corruption

KW - Emerging market

KW - Political behavior

KW - Social responsibility

UR - http://www.scopus.com/inward/record.url?scp=33750887575&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=33750887575&partnerID=8YFLogxK

U2 - 10.1057/palgrave.jibs.8400224

DO - 10.1057/palgrave.jibs.8400224

M3 - Article

AN - SCOPUS:33750887575

VL - 37

SP - 747

EP - 766

JO - Journal of International Business Studies

JF - Journal of International Business Studies

SN - 0047-2506

IS - 6

ER -