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

Research output: Contribution to journalArticle

131 Scopus citations

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

Keywords

  • Corruption
  • Emerging market
  • Political behavior
  • Social responsibility

ASJC Scopus subject areas

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

Cite this