How would foreign entrepreneurs deal with pressures for corruption? A micro-foundational approach

How would foreign entrepreneurs deal with pressures for corruption? A micro-foundational approach

Is corruption good or bad for entrepreneurship? Prior research has presented mixed results when exploring this question. This article takes a micro-foundational approach by focussing on how foreign entrepreneurs cognitively deal with corruption in the host environment. We argue that the entrepreneur...

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Veröffentlicht in:International small business journal 2023-05, Vol.41 (3), p.298-317
Hauptverfasser: Liu, Kun, Treviño, Len J, Al Asady, Ahmad
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Sprache:eng
Schlagworte:
Corruption
Entrepreneurs
Entrepreneurship
Legitimacy
Propensity
Public policy
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container_title International small business journal
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creator Liu, Kun
Treviño, Len J
Al Asady, Ahmad
description Is corruption good or bad for entrepreneurship? Prior research has presented mixed results when exploring this question. This article takes a micro-foundational approach by focussing on how foreign entrepreneurs cognitively deal with corruption in the host environment. We argue that the entrepreneur’s motivational antecedent to engaging in corruption, or corruption propensity, represents a cognitive belief in the legitimacy and effectiveness of corruption. We find that higher corruption propensity leads to lower firm growth. In addition, the effects of corruption propensity are conditioned by the corruption difference between home and host countries. Finally, we discuss implications for research, practice and public policy.
doi_str_mv 10.1177/02662426221094763
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source PAIS Index; SAGE Complete
subjects Corruption
Entrepreneurs
Entrepreneurship
Legitimacy
Propensity
Public policy
title How would foreign entrepreneurs deal with pressures for corruption? A micro-foundational approach
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