The impact of petty corruption on firm innovation in Vietnam

Nguyễn, Ngọc Ánh; Doan, Hung Quang; Nguyen, Ngoc Minh; Tran‐Nam, Binh

doi:10.1007/s10611-016-9610-1

Cited by 86 publications

(53 citation statements)

References 38 publications

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“…Xia et al, (2018) in their survey developed in the context of China, found a significant positive impact of corruption into innovation. Similarly, the same finding is confirmed in another study developed in Vietnam, thus supporting the "greasing the wheel" thesis (Nguyen et al, 2016). A recent study uncovered that political corruption benefits firms in most of their innovative activities (Riaz and Cantner, 2020).…”

supporting

confidence: 69%

Evaluating the implications of corruption practises on firm innovativeness capacities: evidence a 2019 survey in Albania

Kosta¹

2020

AOUS

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this paper evaluates empirically the relationship between corruption and innovation, in the context of a developing economy. There are two different theses that argue on the corruption effects on firms' innovativeness capacities. "Sanding the wheels" thesis supports the harmful impact corruption has on innovation while "greasing the wheels" thesis supports the positive impact corruption has on innovation. this papers seeks to test the "grease the wheels" thesis. to do this, data is reported from the World Bank Enterprise Survey (WBES) on 377 enterprises in Albania, collected in 2019. After controlling for other determinants of innovation, the finding is that corruptions harms firms' innovativeness capacities. This finding supports the "sand the wheel" thesis. theoretical and policy implications are then discussed.

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confidence: 69%

Evaluating the implications of corruption practises on firm innovativeness capacities: evidence a 2019 survey in Albania

Kosta¹

2020

AOUS

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“…So, the corruption has a negative impact on the expectation that a company will be innovative and at the same time, it has a positive impact in overcoming the inefficient structures and institutions. Ngoc et al (2016) have studied the impact of corruption depending on its size, making a clear distinction between "the petty corruption" and "the grand corruption". In their view, "the petty corruption" may have a positive effect on business innovation, allowing getting immediate benefits for the company, especially when it comes to overcoming the inefficient structures that hinder the company's activity.…”

Section: Literature Reviewmentioning

confidence: 99%

Does Corruption Affects Business Innovation? Insights From Emerging Countries

Pirtea

Sipos

Ionescu

2019

Journal of Business Economics and Management

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There are very different outcomes in the literature regarding the influences of corruption on business innovation and also arguments for both "sanding the wheels" and "greasing the wheels" approaches. The main goal pursued in this paper is to broaden the understanding of the corruption influence on business innovation, considering seven representative dimensions of corruption at governmental structures and institutions' level and also four relevant dimensions of business innovation, less approached so far. The originality and relevance of this paper are based on that these seven different dimensions of corruption are targeting three characteristic features of it, as bribery's prevalence, the bribery's spread and the companies' propensity to offer gifts for overcoming the bureaucratic pressures. Moreover, the four different new dimensions of business innovation are targeting the company's propensity for innovating and strengthening its image and the way of connecting with business partners in a changing business environment. Considering an extensive data set for 110 emergent countries from four continents for the period between 2002 and 2014 and using the generalized linear model framework, this research study is emphasizing that corruption at governmental structures and institutional level has a significant negative impact on business innovation, adversely affecting innovation perspectives.

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“…Despite improvement over the past years, corruption is still considered widespread throughout the country, and Vietnam still lags behind other Asian countries regarding corruption control and most governance indicators (Transparency International, 2012). International studies suggest that corruption affects the business environment both positively and negatively (e.g., Dang, 2016;Méon & Weill, 2010;Nguyen, Doan, Nguyen, & Tran-Nam, 2016;Welter & Smallbone, 2014). However, relatively little literature has been published on corruption in Vietnam, especially with respect to its effect on the business environment.…”

Section: Introductionmentioning

confidence: 99%

Corruption and the business environment in Vietnam: Implications from an empirical study

Maruichi

Abé

2019

Asia & Pacific Policy Stud

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This paper examines the effect of corruption on the business environment in Vietnam. Our survey of firms conducted in Vietnam suggests that corruption is perceived as the most impactful business obstacle for their operation. It was also found that corruption has a significant negative association with the overall satisfaction of the business environment in Vietnam, which supports the hypothesis that corruption has a "sand the wheel" effect on firms' business activities. Given these results, it is urgent that the Vietnamese public authorities accelerate efforts in mitigating this issue. Although this paper sheds light on the importance of corruption, it would be useful to conduct follow-up studies examining corruption and its impact in more detail. Such studies could be conducted in segments that most severely suffer from corruption according to our survey, that is, mediumsized enterprises in the hotel/restaurant and construction sectors, Hanoi based, and Vietnamese owned firms.This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.

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The impact of petty corruption on firm innovation in Vietnam

Cited by 86 publications

References 38 publications

Evaluating the implications of corruption practises on firm innovativeness capacities: evidence a 2019 survey in Albania

Evaluating the implications of corruption practises on firm innovativeness capacities: evidence a 2019 survey in Albania

Does Corruption Affects Business Innovation? Insights From Emerging Countries

Corruption and the business environment in Vietnam: Implications from an empirical study

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