Institutional pressure and MNC compliance to prevent bribery: empirical examinations in South Korea and China

Park, Byung Il; Hong, Sungjin J.; Xiao, Shufeng

doi:10.1057/s41291-020-00143-x

Cited by 15 publications

(7 citation statements)

References 77 publications

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“…The second theme is the antecedents of PSI. Due to the controversial nature of the strategy and the stringent governance requirements foreign-owned firms are often subjected to (Park, Hong and Xiao, 2021), they are less likely to use it. Similarly, subsidiaries or firms that are part of business groups may be required to follow their parent organizations' CSR plans and practices (Yang and Rivers, 2009), which can constrain their freedom to do PSI.…”

Section: Discussionmentioning

confidence: 99%

Killing Two Birds with One Stone in the Nonmarket Environment: The Orchestration of Corporate Social Responsibility as a Political Strategy

Liedong

2022

British J of Management

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This paper explores how corporate social responsibility (CSR) is used as a political strategy. Drawing on social exchange theory and using data from firms operating in Ghana, the findings reveal that when CSR is politicized, it involves the design and implementation of politically charged CSR initiatives that entail firm-polity negotiated exchanges. Firms exchange social interventions for political influence in ways that allow politicians to take the credit to boost their re-election. To do this, the choice of target politician hinges on political vulnerability, the selection of CSR initiatives is based on CSR orientation and CSR benefit personalization, the location of CSR is linked to politicians' electoral constituencies and the timing of CSR is affected by election cycles. Overall, this paper provides new insights into how CSR is used in indirect social exchanges in political markets, shows that CSR can be CPA and thus extends nonmarket strategy integration from its focus on CSR's complementarity with CPA to its instrumentality in CPA. The findings have important theoretical and practical implications.

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Section: Discussionmentioning

confidence: 99%

Killing Two Birds with One Stone in the Nonmarket Environment: The Orchestration of Corporate Social Responsibility as a Political Strategy

Liedong

2022

British J of Management

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“…Social norms about corruption in both the home and host countries affect corporate bribery (Vuong et al, 2021). Drawing on an institution-based view, primary determinants deterring MNC subsidiary misconduct are institutional pressure, including regulatory, normative and cognitive pressures (Park et al, 2022). Institutional distance brings relational and discriminatory risks to MNCs that domestic companies will not encounter, namely, the "liability of foreignness" (Boehe, 2011).…”

Section: 23mentioning

confidence: 99%

Overseas compliance risk prevention for multinational corporations in a law and economics perspective: empirical evidence from Chinese MNCs

Chen

Zhu

Wang

2023

MBR

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Purpose This paper aims to investigate whether executive compensation and internal control can prevent overseas compliance risks through the mediating influence of multinational corporation (MNC) legitimacy and the moderating role of institutional distance. Design/methodology/approach Based on a law and economics perspective and the “bad apple,” the “red barrel” and the “bad cellar” theory of business misconduct, this paper constructs a systematic framework of “compliance motivation MNC legitimacy overseas compliance risk prevention” from the individual, organizational and systematic levels and uses data of Chinese MNCs for empirical analysis. Findings Empirical data from Chinese MNCs show that overseas compliance risks are comprehensively affected by the factors of the individual, organizational and systematic levels. Higher executive compensation and internal control will reduce MNCs’ overseas compliance risks through MNC legitimacy acquisition; institutional distance hinders the positive effect of internal control on MNC legitimacy and therefore aggravates overseas compliance risks. Practical implications This paper contributes to the understanding of the overseas law-abiding and offence behavior of MNCs from a law and economics perspective and offers valuable insights on how to prevent the ever-increasing overseas compliance risks. Originality/value Although the literature has analyzed the factors of compliance behavior, they are not interrelated, let alone integrated in a systematic risk prevention framework. This paper applies a law and economic analysis framework to the study of the overseas compliance risks for the first time.

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“…Fines and penalties from governments compel enterprises to adopt a respectful attitude to environmental protection (Cao and Chen, 2019;Wei et al, 2017;Zhang et al, 2020a). Moreover, the regulatory forces from social media, nongovernmental organizations and public agencies prompt enterprises to consider addressing their exposed negative environmental consequences (Park et al, 2021), which may deteriorate their environmental image and lead to a reduction in customers (Du, 2015;Walker and Wan, 2012). Therefore, we propose: H3a.…”

Section: Perceived Institutional Force and Environmental Strategymentioning

confidence: 99%

Linking perceived institutional force and environmental strategy: the moderating role of institutional incompleteness

Feng

Liu

Zhang

2022

BJM

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PurposeThis study aims to examine the impact of perceived institutional force on environmental strategy, and the moderating role of institutional incompleteness.Design/methodology/approachThis study tests hypotheses employing hierarchical regression model based on a survey of 317 Chinese manufacturers.FindingsThe results reveal that perceived business and social force have positive impacts on symbolic environmental strategy. Perceived social force has a positive impact on substantive environmental strategy and a negative impact on greenwashing. Further analysis suggests that perceived social force has a stronger effect on substantive environmental strategy than perceived business force. Moreover, institutional incompleteness strengthens the impact of perceived business force on substantive environmental strategy, and the impact of perceived social force on symbolic and substantive environmental strategy.Originality/valueThis study establishes a framework integrating distinct types of perceived institutional force and environmental strategy and provides a new perspective on measuring greenwashing to extend environmental strategy literature.

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Institutional pressure and MNC compliance to prevent bribery: empirical examinations in South Korea and China

Cited by 15 publications

References 77 publications

Killing Two Birds with One Stone in the Nonmarket Environment: The Orchestration of Corporate Social Responsibility as a Political Strategy

Killing Two Birds with One Stone in the Nonmarket Environment: The Orchestration of Corporate Social Responsibility as a Political Strategy

Overseas compliance risk prevention for multinational corporations in a law and economics perspective: empirical evidence from Chinese MNCs

Linking perceived institutional force and environmental strategy: the moderating role of institutional incompleteness

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