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Does bribery in the home country promote or dampen firm exports?

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  • Seung‐Hyun Lee
  • David H. Weng

Abstract

This study examines the impact of bribery within the home country on firm exports by developing two contrasting hypotheses. On the one hand, preferential treatment resulting from government officials in exchange for bribes may promote exports by enhancing efficiency and enabling bribing firms to better compete in foreign markets. On the other hand, preferential treatment resulting from bribes may decrease exports by providing firms with more established positions within the domestic market diminishing the incentive to explore foreign markets. Adopting the three‐stage least squares method, we test these competing arguments using a sample of firms operating within transition economies. We find that bribery within the home country decreases rather than increases firm exports. The implications of our findings are discussed. Copyright © 2013 John Wiley & Sons, Ltd.

Suggested Citation

  • Seung‐Hyun Lee & David H. Weng, 2013. "Does bribery in the home country promote or dampen firm exports?," Strategic Management Journal, Wiley Blackwell, vol. 34(12), pages 1472-1487, December.
  • Handle: RePEc:bla:stratm:v:34:y:2013:i:12:p:1472-1487
    DOI: 10.1002/smj.2075
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    Cited by:

    1. Hyun Ju Jung & Seung-Hyun Lee, 2023. "The Impact of Bribery Relationships on Firm Growth in Transition Economies," Organization Science, INFORMS, vol. 34(1), pages 303-328, January.
    2. Yu Wang & Xiaoyi Luo & Tienan Wang & Die Hu, 2021. "Go beyond tokens: Number and type both matter," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 30(4), pages 639-656, October.
    3. Arzi Adbi & Xiaojin Liu & Anant Mishra, 2022. "Technology Licensing and Productivity Growth: Evidence from Manufacturing Firms in Developing Economies," Manufacturing & Service Operations Management, INFORMS, vol. 24(1), pages 214-234, January.
    4. Mariana G. Andrade-Rojas & Terence J. V. Saldanha & Abhishek Kathuria & Jiban Khuntia & Waifong Boh, 2024. "How Information Technology Overcomes Deficiencies for Innovation in Small and Medium-Sized Enterprises: Closed Innovation vs. Open Innovation," Information Systems Research, INFORMS, vol. 35(4), pages 1981-2012, December.
    5. Yeo, Yun Dong, 2026. "Political regime change and firm bribery," Journal of Business Research, Elsevier, vol. 206(C).
    6. Aline Gatignon & Marina A. B. Gama & Rodrigo B. DeMello, 2023. "The Returns to Nonmarket Strategies During Institutional Transitions: Investor Reactions to Actor and Tie Characteristics," Organization Science, INFORMS, vol. 34(2), pages 916-934, March.

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