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Cronyism: a cross-cultural analysis


  • Naresh Khatri

    (Health Management and Informatics, University of Missouri, Columbia, USA)

  • Eric W K Tsang

    (Business Department, Wayne State University, Detroit, USA)

  • Thomas M Begley

    ([1] 3Department of Management, University College Dublin, Ireland [2] 4International Management Group, Northeastern University, Boston, USA)


The devastating economic effects of the Asian financial crisis and US corporate scandals have underscored the need to strengthen corporate governance provisions. Although cronyism has been suggested as a leading cause of the two crises, it has received little attention from scholars. In this paper, we analyze the concept of cronyism and argue that it comes in various guises arising from different motivational bases and power dependence relations. We distinguish cronyism from related constructs and posit that it is a form of corruption with different dynamics from other forms. We advance propositions on its likelihood of occurrence across cultures and develop a typology of cronyist exchanges. Journal of International Business Studies (2006) 37, 61–75. doi:10.1057/palgrave.jibs.8400171

Suggested Citation

  • Naresh Khatri & Eric W K Tsang & Thomas M Begley, 2006. "Cronyism: a cross-cultural analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(1), pages 61-75, January.
  • Handle: RePEc:pal:jintbs:v:37:y:2006:i:1:p:61-75

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    Cited by:

    1. Marleen Dieleman & Wladimir M. Sachs, 2008. "Coevolution of Institutions and Corporations in Emerging Economies: How the Salim Group Morphed into an Institution of Suharto's Crony Regime," Journal of Management Studies, Wiley Blackwell, vol. 45(7), pages 1274-1300, November.
    2. Chung-wen Chen, 2014. "Are Workers More Likely to be Deviant than Managers? A Cross-National Analysis," Journal of Business Ethics, Springer, vol. 123(2), pages 221-233, August.
    3. Ratan J. S. Dheer, 2017. "Cross-national differences in entrepreneurial activity: role of culture and institutional factors," Small Business Economics, Springer, vol. 48(4), pages 813-842, April.
    4. Dendi Ramdani & Arjen Witteloostuijn, 2012. "The Shareholder–Manager Relationship and Its Impact on the Likelihood of Firm Bribery," Journal of Business Ethics, Springer, vol. 108(4), pages 495-507, July.
    5. Costigan, Robert D. & Insinga, Richard C. & Berman, J. Jason & Kranas, Grazyna & Kureshov, Vladimir A., 2011. "Revisiting the relationship of supervisor trust and CEO trust to turnover intentions: A three-country comparative study," Journal of World Business, Elsevier, vol. 46(1), pages 74-83, January.
    6. Wei, Li-Qun & Ling, Yan, 2015. "CEO characteristics and corporate entrepreneurship in transition economies: Evidence from China," Journal of Business Research, Elsevier, vol. 68(6), pages 1157-1165.
    7. Amy J. Hillman & Gavin Nicholson & Christine Shropshire, 2008. "Directors' Multiple Identities, Identification, and Board Monitoring and Resource Provision," Organization Science, INFORMS, vol. 19(3), pages 441-456, June.
    8. 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.
    9. Fiedler, Marina & Haruvy, Ernan & Li, Sherry Xin, 2011. "Social distance in a virtual world experiment," Games and Economic Behavior, Elsevier, vol. 72(2), pages 400-426, June.
    10. Muhammed Turhan, 2014. "Organizational Cronyism: A Scale Development and Validation from the Perspective of Teachers," Journal of Business Ethics, Springer, vol. 123(2), pages 295-308, August.
    11. Dey, Oindrila & Das, Abhishek & Gupta, Gautam & Banerjee, Swapnendu, 2017. "Favouritism Or Fairness?: A Framed Laboratory Experiment," MPRA Paper 80214, University Library of Munich, Germany.
    12. Gupta, Vishal, 2015. "Indian Administrative Service (IAS) and Crony Capitalism: A Review Paper," IIMA Working Papers WP2015-03-07, Indian Institute of Management Ahmedabad, Research and Publication Department.
    13. Garry D. Bruton & Chung-Ming Lau, 2008. "Asian Management Research: Status Today and Future Outlook," Journal of Management Studies, Wiley Blackwell, vol. 45(3), pages 636-659, May.
    14. Paul Dragos Aligica & Vlad Tarko, 2014. "Crony Capitalism: Rent Seeking, Institutions and Ideology," Kyklos, Wiley Blackwell, vol. 67(2), pages 156-176, May.
    15. repec:eee:corfin:v:46:y:2017:i:c:p:232-247 is not listed on IDEAS
    16. Murray, Janet Y. & Fu, Frank Q., 2016. "Strategic guanxi orientation: How to manage distribution channels in China?," Journal of International Management, Elsevier, vol. 22(1), pages 1-16.
    17. Hafez Ghanem, 2014. "Governance Reform to Achieve Social Justice and Inclusive Growth in Egypt: Building Inclusive Economic Institutions," Working Papers 873, Economic Research Forum, revised Nov 2014.
    18. Johannes Meuer & Barbara Krug, 2011. "The Current State of Research on Networks in China’s Business System," Chapters,in: Institutional Variety in East Asia, chapter 7 Edward Elgar Publishing.
    19. repec:kap:jbuset:v:145:y:2017:i:1:d:10.1007_s10551-015-2843-6 is not listed on IDEAS
    20. Olwen Bedford, 2011. "Guanxi-Building in the Workplace: A Dynamic Process Model of Working and Backdoor Guanxi," Journal of Business Ethics, Springer, vol. 104(1), pages 149-158, November.
    21. Dieleman, Marleen & Sachs, Wladimir M., 2008. "Economies of connectedness: Concept and application," Journal of International Management, Elsevier, vol. 14(3), pages 270-285, September.

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