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Organized crime and firm innovation: The moderating effects of business group affiliation and export intensity

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  • Zhang, Yiyun
  • Wei, Shihao

Abstract

Drawing on institutional theory, this study examines the effect of organized crime on firm innovation and how business group affiliation and export intensity moderate this relationship. Using a sample of 92,318 firms across 111 countries from 2006 to 2019, this study finds that organized crime has a negative effect on firm innovation, but this effect becomes weaker when firms are affiliated with business groups and exhibit higher export intensity. By elaborating on the role of organized crime in firm innovation and how it interacts with firm attributes, this study identifies critical drivers of cross-country differences in firm innovation and deepens our understanding of organized crime's microeconomic implications, thereby contributing to both the international comparative innovation and organized crime literatures.

Suggested Citation

  • Zhang, Yiyun & Wei, Shihao, 2026. "Organized crime and firm innovation: The moderating effects of business group affiliation and export intensity," Journal of International Management, Elsevier, vol. 32(2).
    • Handle: RePEc:eee:intman:v:32:y:2026:i:2:s1075425326000177
    DOI: 10.1016/j.intman.2026.101343
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