Corruption and subsidiary profitability: US MNC subsidiaries in the Asia Pacific region

Lee, Seung Hyun; Hong, Sungjin J.

doi:10.1007/s10490-010-9214-8

Cited by 36 publications

(11 citation statements)

References 33 publications

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“…For example, the institutions domain does not fully address its objective to explain the role of institutions in exposure to and management of po- 14 Liu et al 2016;Vachani 1995). We argue that ef- for FDI, is difficult to control, and should be avoided 46 (Green and Smith 1972;Root 1968;Truitt 1970 (Habib and Zurawicki 2002;Hiatt and Sine 2014;Lee and Hong 2012;Li and Vashchilko 2010;Soule et al 2014). Furthermore, it concludes that political risk is difficult to control (Blake and Moschieri 2017;Lu et al 2014).…”

Section: Partial Fulfilment Of Objectives In Domainsmentioning

confidence: 90%

International Political Risk Management: Perspectives, Approaches and Emerging Agendas

John

Lawton

2017

Int J Management Reviews

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This paper reviews the extant and emerging perspectives on, and approaches to, political risk management, particularly in the context of foreign direct investment. The authors identify and classify the various theoretical lenses in the domain of political risk management, and suggest a future research agenda. The paper contributes by conceptually categorizing and mapping the extant research onto three approaches to the management of political risk. Through conducting a narrative literature review, the authors suggest three theoretical perspectives on political risk management: institutions; resources and capabilities; and resource dependence. They argue that the institutions approach to political risk management is reactive, responding to external stimuli, whereas the resources- and capabilities-based approach is proactive, preparing and acting in anticipation. The resource dependence domain offers an intermediate approach – the active management of political risk. The authors also suggest that the effectiveness of the domains’ approaches may vary across different national contexts

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Section: Partial Fulfilment Of Objectives In Domainsmentioning

confidence: 90%

International Political Risk Management: Perspectives, Approaches and Emerging Agendas

John

Lawton

2017

Int J Management Reviews

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“…In countries with weak institutional environment unreliable information, bureaucracy and unpredictable government actions increase transaction costs and reduce operational efficiently (North, ). The few studies that examine how corruption influences affiliate performance are concerned with contingent factors that moderate the negative effects of corruption on performance (Spencer and Gomez, ; Lee and Hong, ). For example, Lee and Hong () who study US MNC subsidiaries in the Asia Pacific region find that focus on local sales strengthens the positive relationship between low corruption and firm profitability.…”

Section: Literature Reviewmentioning

confidence: 99%

Bank Foreign Affiliate Performance in the Face of Pervasive and Arbitrary Corruption

Petrou

2014

European Management Review

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This study investigates the financial performance of foreign bank affiliates in light of their experience with pervasive and arbitrary corruption. To achieve this, we draw on the resource dependence theory and the institutional theory to explain how pervasiveness and arbitrariness affect financial performance through operating costs, risks of defaults and business growth. Using data on 122 foreign bank affiliates in 37 countries, we find that pervasiveness has a negative influence on the affiliate's performance, and, the joint interaction of pervasiveness and arbitrariness strengthens this relationship. The latter is significant for affiliates operating in developing countries, which may indicate that arbitrariness is damaging when corruption is pervasive. This study advances the literature on corruption at firm‐level, and the literature on bank internationalization. Moreover, findings have implications for managers, who need to recognize how the interaction of these two dimensions of corruption compromise their foreign operations.

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“…Operar em um país com um alto nível de corrupção tende a restringir as oportunidades geradoras de lucros aumentando os custos de fazer negócios no país. Assim, num ambiente onde o nível de corrupção em um país de acolhimento é elevado, o desempenho do IDE tende a ser significativamente menor do que em países com um baixo nível de corrupção (Lee & Hong, 2012). De modo geral, entendemos que assim como apontam diversos estudos, que a corrupção reduz significativamente os fluxos agregados de IDE do país, particularmente na medida em que afeta o próprio desempenho da empresa (Uhlenbruck et al, 2006).…”

Section: Corrupção E Desempenho Da Subsidiária Da Emneunclassified

“…O índice de percepção de corrupção é apresentado em uma escala de 0 a 100, indicando que os valores próximos de zero apontam para altos índices de corrupção, enquanto que valores que se aproximam de 100 apontam para baixos índices de corrupção e esse índice é atualizado anualmente (Transparency International, 2016). Optou-se por esta medida acompanhando vários estudos nos negócios internacionais que também se utilizaram deste indicador para analisar a corrupção (Lee & Hong, 2012;Di Guardo, Marrocu, & Paci, 2016).…”

Section: Variáveis Independentesunclassified

Corrupção, Modos de Entrada e Desempenho de Subsidiárias de Empresas Multinacionais de Países Emergentes

Klaesener

Amal

Falaster

2021

BASE

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Corrupção, definida como o abuso do poder público para ganhos privados, tem sido o objeto de estudos teóricos e empíricos na literatura recente de Negócios Internacionais. Com o objetivo de contribuir empiricamente com esta temática, o propósito do presente artigo é analisar os efeitos da corrupção sobre a escolha do modo de entrada internacional e sobre o desempenho de subsidiárias de Empresas Multinacionais (EMNEs) de origem de economias emergentes operando em economias emergentes. Utilizando-se de uma abordagem quantitativa, com a técnica regressão em dados de painel para uma amostra de 657 subsidiárias de EMNEs, encontraram-se evidências sobre os impactos negativos da Corrupção no desempenho das subsidiárias de países emergentes operando em outros países emergentes. Além disso, o estudo aponta para o efeito moderador do modo de entrada Joint Venture (JV) para a relação entre corrupção e desempenho.

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Corruption and subsidiary profitability: US MNC subsidiaries in the Asia Pacific region

Cited by 36 publications

References 33 publications

International Political Risk Management: Perspectives, Approaches and Emerging Agendas

International Political Risk Management: Perspectives, Approaches and Emerging Agendas

Bank Foreign Affiliate Performance in the Face of Pervasive and Arbitrary Corruption

Corrupção, Modos de Entrada e Desempenho de Subsidiárias de Empresas Multinacionais de Países Emergentes

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