Firm-level trust in emerging markets: the moderating effect on the institutional strength- corruption relationship in Mexico and Peru

Abstract

Emerging market firms often face corruption and institutional weakness in their environments. Firm-level trust may help with these challenges. In these countries, firm-level trust may engage employees and reduce pressure on firms from weak institutions and corruption. This is a study of employees of firms in Mexico and Peru, and it measures perceptions of corruption, trust, and institutional strength. Using confirmatory factor analysis and linear regression, the study tests hypotheses that trust moderates the weak institution - perceived corruption relationship. Findings suggest that trust may help employees be productive despite these challenges. Firms that build trust among employees may be better able to confront the challenges of corrupt and uncertain institutional environments.

Problemática de la corrupción en el Perú

“…Volviendo al caso de Odebrecht, las empresas en mercados emergentes como los de América Latina, se enfrentan constantemente a la corrupción y debilidad institucional, involucrando incluso a empleados y funcionarios públicos (Sánchez y Lehnert, 2018).…”

“…Este fenómeno mundial tiene consecuencias negativas y representa uno de los mayores obstáculos para el desarrollo económico y social, si bien América Latina ha venido realizando grandes esfuerzos en la batalla contra la corrupción, los resultados aún no han sido positivos dentro de la región (Useche y Reyes, 2020). Asimismo, en este entorno de debilidad gubernamental, que caracteriza al Perú, las empresas privadas que ostentan el poder se vuelven proclives a sobornar funcionarios públicos con el propósito que estos tomen decisiones a favor de su organización (Sánchez y Lehnert, 2018).…”

Loyalty in Education: MOdelliNg The RElationship Environment

“…Based on trust, the consumer will risk scarce resources to start and continue the relationship. Trust mitigates the risk of oneparty taking advantage of another's vulnerability [21]. The study of trust is not alone, trust is associated with satisfaction, affective commitment, and commitment to continuity as intervening variables to achieve loyalty and the intention to buy again [15].…”

How macro level foundations influence emerging micro entrepreneurial activities: The case of South Africa

“…However, South African international partnership and cooperation have made the network very challenging for entrepreneurs because of the lack of trust in international competition, low competitiveness, and state protectionism (Moodley 2003). This is not surprising because other emerging markets show similar conditions as Sánchez & Lehnert (2018) demonstrated for Mexico and Peru.…”