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Entrepreneurs' propensity for corruption: A vignette-based factorial survey

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  • Dickel, Petra
  • Graeff, Peter

Abstract

This paper investigates the ways in which cost-benefit considerations influence entrepreneurs' propensity to engage in corruption. It further investigates how the effects of these considerations are fostered by entrepreneurs' adherence to legal standards (norm internalization) and the degree to which they ponder the pros and cons of an ethically challenging business situation (deliberation). In order to deduce the causal effects and reduce social desirability bias, this study uses a vignette-based factorial survey. A multi-level analysis of 740 vignettes from 148 entrepreneurs indicates that the propensity of entrepreneurs to participate in acts of corruption is driven by expected economic gains and a high probability that the corruption will be successful. The impact of these factors increases when entrepreneurs have a higher tendency to ponder the pros and cons of an opportunity to commit corruption. However, the probability of detection does not affect their propensity for corruption.

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  • Dickel, Petra & Graeff, Peter, 2018. "Entrepreneurs' propensity for corruption: A vignette-based factorial survey," Journal of Business Research, Elsevier, vol. 89(C), pages 77-86.
    • Handle: RePEc:eee:jbrese:v:89:y:2018:i:c:p:77-86
    DOI: 10.1016/j.jbusres.2018.03.036
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    7. Gaygysyz Ashyrov & Helen Poltimäe, 2022. "Does Corruption Hinder Firm Energy Efficiency? Evidence From Vietnam," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 137, Faculty of Economics and Business Administration, University of Tartu (Estonia).

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