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An Organizational Perspective of Corruption

Author

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  • Yadong Luo

    (University of Miami)

Abstract

An organizational view of corruption is a frontier and challenging issue in the realm of management and organization research. This article elucidates four interrelated yet sequential issues that collectively constitute organizational explanations of corruption: (i) corruption and organizational environment; (ii) corruption and organizational behaviour; (iii) corruption and organizational consequences; and (iv) corruption and organizational architecture. Specifically, it (1) offers taxonomic metaphors that identify different corrupt organizations on the basis of corruption scale and hierarchical involvement; (2) defines task environments (oligopoly intensity, regulatory control and structural uncertainty) and institutional environments (opaqueness, injustice and complexity) that stimulate illicit acts; (3) confers a typology of corrupt behaviors that align with these task and institutional environments and correspond to different metaphors (system malfeasance, procedural malfeasance, categorical malfeasance and structural malfeasance); (4) develops the logic that corruption impedes organizational development through quadri-damages (evolutionary hazard, strategic impediment, competitive disadvantage and organizational deficiency; and (5) illuminates a corruption-resisting architecture comprising corporate culture, organizational structure and compliance system.

Suggested Citation

  • Yadong Luo, 2004. "An Organizational Perspective of Corruption," Management and Organization Review, International Association of Chinese Management Research, vol. 1(1), pages 119-154, June.
    • Handle: RePEc:cmr:mor101:v:1:y:2004:i:1:p:119-154
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    Citations

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    Cited by:

    1. Ilhan-Nas, Tulay & Okan, Tarhan & Tatoglu, Ekrem & Demirbag, Mehmet & Wood, Geoffrey & Glaister, Keith W., 2018. "Board composition, family ownership, institutional distance and the foreign equity ownership strategies of Turkish MNEs," Journal of World Business, Elsevier, vol. 53(6), pages 862-879.
    2. Ilhan-Nas, Tulay & Okan, Tarhan & Tatoglu, Ekrem & Demirbag, Mehmet & Glaister, Keith W., 2018. "The effects of ownership concentration and institutional distance on the foreign entry ownership strategy of Turkish MNEs," Journal of Business Research, Elsevier, vol. 93(C), pages 173-183.
    3. Fang Huang & John Rice, 2012. "Firm Networking and Bribery in China: Assessing Some Potential Negative Consequences of Firm Openness," Journal of Business Ethics, Springer, vol. 107(4), pages 533-545, June.
    4. Anh‐Tuan Doan & Bich‐Thanh Truong & Chi‐Cuong Nguyen & Phan‐Tam‐Nhu Nguyen & Hai‐Yen Truong & Anh‐Tuan Le, 2023. "Corruption and corporate leverage in an emerging economy: The role of economic freedom," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(2), pages 599-629, June.
    5. Lan, Fei & Wang, Wei & Cao, Qingzi, 2020. "Tax cuts and enterprises’ R&D intensity: Evidence from a natural experiment in China," Economic Modelling, Elsevier, vol. 89(C), pages 304-314.
    6. Xuemei Xie & Guoyou Qi & Kevin Xiaoguo Zhu, 2019. "Corruption and New Product Innovation: Examining Firms’ Ethical Dilemmas in Transition Economies," Journal of Business Ethics, Springer, vol. 160(1), pages 107-125, November.
    7. Yang, Dan & Jiao, Hao & Buckland, Roger, 2017. "The determinants of financial fraud in Chinese firms: Does corporate governance as an institutional innovation matter?," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 309-320.
    8. Sebastian Forkmann & Jonathan Webb & Stephan C. Henneberg & Lisa K. Scheer, 2022. "Boundary spanner corruption: a potential dark side of multi-level trust in marketing relationships," Journal of the Academy of Marketing Science, Springer, vol. 50(5), pages 889-914, September.
    9. Ahmet Ekici & Sule Onsel, 2013. "How Ethical Behavior of Firms is Influenced by the Legal and Political Environments: A Bayesian Causal Map Analysis Based on Stages of Development," Journal of Business Ethics, Springer, vol. 115(2), pages 271-290, June.
    10. Anokhin, Sergey & Schulze, William S., 2009. "Entrepreneurship, innovation, and corruption," Journal of Business Venturing, Elsevier, vol. 24(5), pages 465-476, September.
    11. Qinqin Zheng & Yadong Luo & Stephanie Wang, 2014. "Moral Degradation, Business Ethics, and Corporate Social Responsibility in a Transitional Economy," Journal of Business Ethics, Springer, vol. 120(3), pages 405-421, March.
    12. Fang Yao & Kai Zhao & Xiaoyu Xu & Wenfei Liu, 2022. "Can Corruption Facilitate Industrial Structure Upgrade in China? The Moderating Role of Government-Business Relationships," SAGE Open, , vol. 12(3), pages 21582440221, September.
    13. Gjalt de Jong & Phan Anh Tu & Hans van Ees, 2012. "Which Entrepreneurs Bribe and what do they Get from It? Exploratory Evidence from Vietnam," Entrepreneurship Theory and Practice, , vol. 36(2), pages 323-345, March.
    14. Cynthia Clark & Jill Brown, 2015. "Multinational Corporations and Governance Effectiveness: Toward a More Integrative Board," Journal of Business Ethics, Springer, vol. 132(3), pages 565-577, December.
    15. Seraphim Voliotis, 2017. "Establishing the Normative Standards that Determine Deviance in Organizational Corruption: Is Corruption Within Organizations Antisocial or Unethical?," Journal of Business Ethics, Springer, vol. 140(1), pages 147-160, January.
    16. Karhunen, Päivi & Ledyaeva, Svetlana, 2012. "Corruption Distance, Anti-corruption Laws and International Ownership Strategies in Russia," Journal of International Management, Elsevier, vol. 18(2), pages 196-208.
    17. Ha, Le Thanh & Nam, Pham Xuan & Thanh, To Trung, 2021. "Effects of Bribery on Firms' Environmental Innovation Adoption in Vietnam: Mediating Roles of Firms' Bargaining Power and Credit and Institutional Constraints," Ecological Economics, Elsevier, vol. 185(C).
    18. Nguyen, Ngoc Anh & Doan, Quang Hung & Nguyen, Ngoc Minh & Tran-Nam, Binh, 2016. "The impact of petty corruption on firm innovation in Vietnam," MPRA Paper 71902, University Library of Munich, Germany.
    19. Pierre-Xavier Meschi, 2009. "Government corruption and foreign stakes in international joint ventures in emerging economies," Asia Pacific Journal of Management, Springer, vol. 26(2), pages 241-261, June.

    More about this item

    Keywords

    Corruption; Emerging Economics; Organizational Behavior; Organizational Environment;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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