IDEAS home Printed from https://ideas.repec.org/a/wly/buseth/v32y2023i2p478-497.html

Long‐term effects of institutional conditions on perceived corruption – A study on organizational imprinting in post‐communist countries

Author

Listed:
  • Thorsten Auer
  • Karin Knorr
  • Kirsten Thommes

Abstract

In this paper, we apply imprinting theory to examine how institutional transformation substantially influences perceptions of corruption that we argue to be incorporated to a varying extent in organizations founded in that period. For this purpose, we compare the effect of a sudden shock (dissolution of the Soviet Union) on the managers' present perceptions to that of a steady transition (EU accession). We consult the 5th round of the Business Environment and Enterprise Performance Survey from 2012 to 2014 analyzing 4715 interviews with managers of organizations from twelve Central and Eastern European countries. Our results reveal striking differences in the present perception of corruption for organizations founded immediately before and immediately after these institutional transitions. The study's results contribute to the research on imprinting theory regarding the relationship between organizations and institutional conditions that constitutes a lasting effect on organizational structures. Thus, applying an institutional perspective that considers less stable periods for organizations yields a promising avenue in research on organizational behavior.

Suggested Citation

  • Thorsten Auer & Karin Knorr & Kirsten Thommes, 2023. "Long‐term effects of institutional conditions on perceived corruption – A study on organizational imprinting in post‐communist countries," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 32(2), pages 478-497, April.
  • Handle: RePEc:wly:buseth:v:32:y:2023:i:2:p:478-497
    DOI: 10.1111/beer.12506
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/beer.12506
    Download Restriction: no

    File URL: https://libkey.io/10.1111/beer.12506?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nadia Albu & Cătălin Nicolae Albu & Oana Apostol & Charles H. Cho, 2020. "The past is never dead: the role of imprints in shaping social and environmental reporting in a post-communist context," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 34(5), pages 1109-1136, November.
    2. Stelios Zyglidopoulos & Peter Fleming & Sandra Rothenberg, 2009. "Rationalization, Overcompensation and the Escalation of Corruption in Organizations," Journal of Business Ethics, Springer, vol. 84(1), pages 65-73, January.
    3. Baghdasaryan, Delia & la Cour, Lisbeth, 2013. "Competition, ownership and productivity. A panel analysis of Czech firms," Journal of Economics and Business, Elsevier, vol. 69(C), pages 86-100.
    4. Heineck, Guido & Süssmuth, Bernd, 2013. "A different look at Lenin’s legacy: Social capital and risk taking in the Two Germanies," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 789-803.
    5. repec:eme:aaaj00:aaaj-08-2019-4131 is not listed on IDEAS
    6. Hanousek, Jan & Kochanova, Anna, 2016. "Bribery environments and firm performance: Evidence from CEE countries," European Journal of Political Economy, Elsevier, vol. 43(C), pages 14-28.
    7. Jakob Svensson, 2005. "Eight Questions about Corruption," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 19-42, Summer.
    8. Martin, Kelly D. & Johnson, Jean L. & Cullen, John B., 2009. "Organizational Change, Normative Control Deinstitutionalization, and Corruption," Business Ethics Quarterly, Cambridge University Press, vol. 19(1), pages 105-130, January.
    9. Kirsch, Robert J. & Laird, Kenneth R. & Evans, Thomas G., 2000. "The Entry of International CPA Firms into Emerging Markets: Motivational Factors and Growth Strategies," The International Journal of Accounting, Elsevier, vol. 35(1), pages 99-119, March.
    10. Christian Bjørnskov & Niklas Potrafke, 2011. "Politics and privatization in Central and Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(2), pages 201-230, April.
    11. Ramaswamy, Kannan & Purkayastha, Saptarshi & Petitt, Barbara S., 2017. "How do institutional transitions impact the efficacy of related and unrelated diversification strategies used by business groups?," Journal of Business Research, Elsevier, vol. 72(C), pages 1-13.
    12. Pierre-Guillaume Méon & Khalid Sekkat, 2005. "Does corruption grease or sand the wheels of growth?," Public Choice, Springer, vol. 122(1), pages 69-97, January.
    13. Dobrev, Stanislav D, 1999. "The Dynamics of the Bulgarian Newspaper Industry in a Period of Transition: Organizational Adaptation, Structural Inertia and Political Change," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 8(3), pages 573-605, September.
    14. Banalieva, Elitsa R. & Karam, Charlotte M. & Ralston, David A. & Elenkov, Detelin & Naoumova, Irina & Dabic, Marina & Potocan, Vojko & Starkus, Arunas & Danis, Wade & Wallace, Alan, 2017. "Communist footprint and subordinate influence behavior in post-communist transition economies," Journal of World Business, Elsevier, vol. 52(2), pages 209-229.
    15. Andrei Shleifer & Daniel Treisman, "undated". "Normal Countries: The East 25 Years After Communism," Working Paper 204036, Harvard University OpenScholar.
    16. Heywood, Paul M. & Rose, Jonathan, 2014. "“Close but no Cigar”: the measurement of corruption," Journal of Public Policy, Cambridge University Press, vol. 34(3), pages 507-529, December.
    17. William Ocasio, 1997. "Towards An Attention‐Based View Of The Firm," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 187-206, July.
    18. Brosig-Koch, Jeannette & Helbach, Christoph & Ockenfels, Axel & Weimann, Joachim, 2011. "Still different after all these years: Solidarity behavior in East and West Germany," Journal of Public Economics, Elsevier, vol. 95(11), pages 1373-1376.
    19. Fisman, Raymond & Svensson, Jakob, 2007. "Are corruption and taxation really harmful to growth? Firm level evidence," Journal of Development Economics, Elsevier, vol. 83(1), pages 63-75, May.
    20. Knack, Stephen, 2007. "Measuring Corruption: A Critique of Indicators in Eastern Europe and Central Asia," Journal of Public Policy, Cambridge University Press, vol. 27(3), pages 255-291, December.
    21. Jaskiewicz, Peter & Combs, James G. & Rau, Sabine B., 2015. "Entrepreneurial legacy: Toward a theory of how some family firms nurture transgenerational entrepreneurship," Journal of Business Venturing, Elsevier, vol. 30(1), pages 29-49.
    22. Agnes Batory, 2010. "Post-accession malaise? EU conditionality, domestic politics and anti-corruption policy in Hungary," Global Crime, Taylor & Francis Journals, vol. 11(2), pages 164-177, April.
    23. Arvind K. Jain, 2001. "Corruption: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 15(1), pages 71-121, February.
    24. Uberti, Luca J., 2018. "Corruption in transition economies: Socialist, Ottoman or structural?," Economic Systems, Elsevier, vol. 42(4), pages 533-555.
    25. Sandra Blagojević & Jože P. Damijan, 2013. "The impact of corruption and ownership on the performance of firms in Central and Eastern Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 25(2), pages 133-158, June.
    26. Huong Vu & Tuyen Quang Tran & Tuan Nguyen & Steven Lim, 2018. "Corruption, Types of Corruption and Firm Financial Performance: New Evidence from a Transitional Economy," Journal of Business Ethics, Springer, vol. 148(4), pages 847-858, April.
    27. Sascha O. Becker & Katrin Boeckh & Christa Hainz & Ludger Woessmann, 2016. "The Empire Is Dead, Long Live the Empire! Long‐Run Persistence of Trust and Corruption in the Bureaucracy," Economic Journal, Royal Economic Society, vol. 126(590), pages 40-74, February.
    28. Christopher Marquis & Cuili Qian, 2014. "Corporate Social Responsibility Reporting in China: Symbol or Substance?," Organization Science, INFORMS, vol. 25(1), pages 127-148, February.
    29. Liu, Heng & Luo, Jin-hui, 2022. "Legacy of ideology: The enduring effect of CEOs’ socialist ideological imprint on private firms’ employee-related CSR," Journal of Business Research, Elsevier, vol. 147(C), pages 491-504.
    30. Paul Heywood, 1997. "Political Corruption: Problems and Perspectives," Political Studies, Political Studies Association, vol. 45(3), pages 417-435, August.
    31. Olken, Benjamin A., 2009. "Corruption perceptions vs. corruption reality," Journal of Public Economics, Elsevier, vol. 93(7-8), pages 950-964, August.
    32. George A. Shinkle & Aldas P. Kriauciunas, 2012. "The impact of current and founding institutions on strength of competitive aspirations in transition economies," Strategic Management Journal, Wiley Blackwell, vol. 33(4), pages 448-458, April.
    33. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    34. DeBacker, Jason & Heim, Bradley T. & Tran, Anh, 2015. "Importing corruption culture from overseas: Evidence from corporate tax evasion in the United States," Journal of Financial Economics, Elsevier, vol. 117(1), pages 122-138.
    35. Francesco Barbera & Ken Moores, 2013. "Firm ownership and productivity: a study of family and non-family SMEs," Small Business Economics, Springer, vol. 40(4), pages 953-976, May.
    36. Dimitrova-Grajzl, Valentina & Grajzl, Peter & Guse, A. Joseph, 2012. "Trust, perceptions of corruption, and demand for regulation: Evidence from post-socialist countries," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(3), pages 292-303.
    37. Ramus, Tommaso & La Cara, Barbara & Vaccaro, Antonino & Brusoni, Stefano, 2018. "Social or Commercial? Innovation Strategies in Social Enterprises at Times of Turbulence," Business Ethics Quarterly, Cambridge University Press, vol. 28(4), pages 463-492, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lurdes Martins & Jorge Cerdeira & Aurora A.C. Teixeira, 2020. "Does corruption boost or harm firms’ performance in developing and emerging economies? A firm‐level study," The World Economy, Wiley Blackwell, vol. 43(8), pages 2119-2152, August.
    2. Colin C. Williams & Alvaro Martinez-Perez, 2016. "Evaluating the impacts of corruption on firm performance in developing economies: an institutional perspective," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 16(4), pages 401-422.
    3. Gaygysyz Ashyrov & Jaan Masso, 2020. "Does corruption affect local and foreign-owned companies differently? Evidence from the BEEPS survey," Post-Communist Economies, Taylor & Francis Journals, vol. 32(3), pages 306-329, April.
    4. Maria Kravtsova & Aleksey Oshchepkov, 2019. "Market And Network Corruption," HSE Working papers WP BRP 209/EC/2019, National Research University Higher School of Economics.
    5. Tomasi, Chiara & Le, Quoc Thai & Nguyen, Thi Ngoc Lan, 2025. "Greasing or Grinding? Regulatory context and the productivity effects of corruption: Evidence from Vietnamese SMEs," European Journal of Political Economy, Elsevier, vol. 89(C).
    6. Yan Leung Cheung & P. Raghavendra Rau & Aris Stouraitis, 2012. "How much do firms pay as bribes and what benefits do they get? Evidence from corruption cases worldwide," NBER Working Papers 17981, National Bureau of Economic Research, Inc.
    7. Cai, Weixing & Hu, Feng & Xu, Fangming & Zheng, Liyi, 2022. "Anti-corruption campaign and corporate cash holdings: Evidence from China," Emerging Markets Review, Elsevier, vol. 51(PA).
    8. Wu, Tao & Delios, Andrew & Chen, Zhaowei & Wang, Xin, 2023. "Rethinking corruption in international business: An empirical review," Journal of World Business, Elsevier, vol. 58(2).
    9. Beatrice D. Simo-Kengne & Siphiwo Bitterhout, 2023. "Corruption's effect on BRICS countries' economic growth: a panel data analysis," Journal of Economics, Finance and Administrative Science, Emerald Group Publishing Limited, vol. 28(56), pages 257-272, May.
    10. Siphiwo Bitterhout & Beatrice D. Simo-Kengne, 2020. "The effect of corruption on economic growth in the BRICS countries. A panel data analysis," Economic Development and Well-being Research Group Working Paper Series edwrg-03-2020, University of Johannesburg, College of Business and Economics, revised 2020.
    11. Giorgio d’Agostino & Luca Pieroni, 2019. "Modelling Corruption Perceptions: Evidence from Eastern Europe and Central Asian Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(1), pages 311-341, February.
    12. Yan-Leung Cheung & P. Raghavendra Rau & Aris Stouraitis, 2021. "What Determines the Return to Bribery? Evidence from Corruption Cases Worldwide," Management Science, INFORMS, vol. 67(10), pages 6235-6265, October.
    13. Claire Giordano, Paloma Lopez-Garcia, 2018. "Is corruption efficiency-enhancing? A case study of the Central and Eastern European region," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 15(1), pages 119-164, June.
    14. Takahiro Sato & Atsushi Kato, 2014. "Greasing the Wheels? The Effect of Corruption in Regulated Manufacturing Sectors of India," Discussion Paper Series DP2014-07, Research Institute for Economics & Business Administration, Kobe University.
    15. Keith Blackburn & Gareth Downing, 2015. "Deconcentration, Corruption and Economic Growth," Centre for Growth and Business Cycle Research Discussion Paper Series 209, Economics, The University of Manchester.
    16. Colin C. Williams & Abbi M. Kedir, 2016. "The Impacts Of Corruption On Firm Performance: Some Lessons From 40 African Countries," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 21(04), pages 1-18, December.
    17. Andreas Freytag & Muhammad Faraz Riaz, 2021. "Corruption and Access to Socio-economic Services in Africa," Jena Economics Research Papers 2021-003, Friedrich-Schiller-University Jena.
    18. Atsushi Kato & Takahiro Sato, 2014. "The effect of corruption on the manufacturing sector in India," Economics of Governance, Springer, vol. 15(2), pages 155-178, May.
    19. De Rosa Donato & Gooroochurn Nishaal & Görg Holger, 2015. "Corruption and Productivity: Firm-level Evidence," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(2), pages 115-138, April.
    20. Nur-tegin, Kanybek & Jakee, Keith, 2020. "Does corruption grease or sand the wheels of development? New results based on disaggregated data," The Quarterly Review of Economics and Finance, Elsevier, vol. 75(C), pages 19-30.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:buseth:v:32:y:2023:i:2:p:478-497. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://onlinelibrary.wiley.com/journal/26946424 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.