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Corruption Control, High-Tech Acquisitions, and the Role of Power Distance

Author

Listed:
  • Viet Anh Hoang
  • Hong An Thai
  • Phuong Uyen Le
  • Thanh Huong Nguyen
  • Man Dang

Abstract

This study investigates how corruption control influences the choice between high-tech and non-high-tech acquisition targets, using international data from 2000 to 2019. Grounded in the institutional theory and transaction cost economics, we hypothesize that stronger corruption control reduces transaction risks, making high-tech acquisitions more attractive. Our findings confirm a positive relationship between corruption control and high-tech acquisitions, but document an inverted U-shaped effect, indicating that beyond a certain threshold, the regulatory burden may deter high-tech investments. Further, we find that cultural distance shapes acquisition outcomes, reinforcing the cross-cultural management theory that power distance moderates the positive relationship between corruption control and high-tech acquisitions. The study contributes to the literature by highlighting the importance of institutional quality in shaping sector-specific acquisition strategies and offers practical implications for managers and policymakers.

Suggested Citation

  • Viet Anh Hoang & Hong An Thai & Phuong Uyen Le & Thanh Huong Nguyen & Man Dang, 2025. "Corruption Control, High-Tech Acquisitions, and the Role of Power Distance," SAGE Open, , vol. 15(1), pages 21582440251, March.
  • Handle: RePEc:sae:sagope:v:15:y:2025:i:1:p:21582440251323664
    DOI: 10.1177/21582440251323664
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