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An Empirical Investigation on Firms’ Proactive and Passive Motivation for Bribery in China

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  • Xiaoyu Zhou
  • Yi Han
  • Rui Wang

Abstract

This research investigates firms’ bribery motivations in China. Based on resource dependence theory and anomie theory, we identify resource conditions as firms’ proactive motivation to bribe and firms’ perceived institutional environment as their passive motivation to bribe. We use the data from 2002 World Business Environment Survey, collected by the World Bank, to investigate firms’ bribery in the world’s largest emerging market, China. We employ a multi-level logistic model to test our hypotheses. The results show that unsatisfactory general and task environmental conditions may trigger firms to bribe in order to compete for better resources and opportunities; institutional conditions such as the security expenditure and anomie climate may make firms perceive bribery as a common phenomenon and thus induce firms to bribe. This research provides some insights to understand business bribery behaviors in emerging market. It also discusses some managerial implications and guidelines for policy-making from the findings. Copyright Springer Science+Business Media Dordrecht 2013

Suggested Citation

  • Xiaoyu Zhou & Yi Han & Rui Wang, 2013. "An Empirical Investigation on Firms’ Proactive and Passive Motivation for Bribery in China," Journal of Business Ethics, Springer, vol. 118(3), pages 461-472, December.
    • Handle: RePEc:kap:jbuset:v:118:y:2013:i:3:p:461-472
    DOI: 10.1007/s10551-012-1596-8
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    Cited by:

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    3. 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.
    4. Yi, Jingtao & Teng, Da & Meng, Shuang, 2018. "Foreign ownership and bribery: Agency and institutional perspectives," International Business Review, Elsevier, vol. 27(1), pages 34-45.
    5. Gauthier, Bernard & Goyette, Jonathan & Kouamé, Wilfried A.K., 2021. "Why do firms pay bribes? Evidence on the demand and supply sides of corruption in developing countries," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 463-479.
    6. Geovana Alves de Lima Fedato & Vanessa Martins Pires & Guilherme Trez, 2017. "The Future of Research in Strategy Implementation in the BRICS Context," Brazilian Business Review, Fucape Business School, vol. 14(3), pages 288-303, May.
    7. Ruohan Wu, 2019. "Firm Development and Bribery: An Empirical Study from Latin America," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 47(1), pages 53-64, March.
    8. Yongqiang Gao & Ya Lisa Lin & Haibin Yang, 2017. "What’s the value in it? Corporate giving under uncertainty," Asia Pacific Journal of Management, Springer, vol. 34(1), pages 215-240, March.
    9. Christina W. Y. Wong & Xin Miao & Shuang Cui & Yanhong Tang, 2018. "Impact of Corporate Environmental Responsibility on Operating Income: Moderating Role of Regional Disparities in China," Journal of Business Ethics, Springer, vol. 149(2), pages 363-382, May.
    10. Hitt, Michael A. & Li, Dan & Xu, Kai, 2016. "International strategy: From local to global and beyond," Journal of World Business, Elsevier, vol. 51(1), pages 58-73.
    11. Liuyang Ren & Xi Zhong & Liangyong Wan, 2022. "Defending the shell: differential effects of delisting pressure on R&D intensity and bribery expenditure," Review of Managerial Science, Springer, vol. 16(5), pages 1437-1470, July.
    12. Byung Il Park & Sungjin J. Hong & Shufeng Simon Xiao, 2022. "Institutional pressure and MNC compliance to prevent bribery: empirical examinations in South Korea and China," Asian Business & Management, Palgrave Macmillan, vol. 21(4), pages 623-656, September.
    13. Julien Hanoteau & Gandhi Pawitan & Virginie Vial, 2021. "Does social capital reduce entrepreneurs' petty corruption? Evidence across Indonesian regions," Papers in Regional Science, Wiley Blackwell, vol. 100(3), pages 651-670, June.
    14. Doren Chadee & Banjo Roxas & Alexandre Kouznetsov, 2021. "Corruption, Bribery and Innovation in CEE: Where is the Link?," Journal of Business Ethics, Springer, vol. 174(4), pages 747-762, December.
    15. Kim, Sahrok & Praveen Parboteeah, K. & Cullen, John B. & Jeong, Nara, 2022. "Social institutions approach to women’s firm ownership and firm bribery activity: A study of small-sized firms in emerging markets," Journal of Business Research, Elsevier, vol. 144(C), pages 1333-1349.

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