Corruption and foreign direct investment phases: The moderating role of institutions

Yi, Jingtao; Meng, Shuang; Macaulay, Craig D.; Peng, Mike W.

doi:10.1057/s42214-019-00024-x

Cited by 34 publications

(31 citation statements)

References 68 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Our empirical study suggests that although no institutional context per se is able to fully prevent supply chain corruption to emerge, the extent to which an institutional context is weak or robust seems to influence the actual frequency that supply chain corruption emerges; this is consistent with the literature (Yi et al , 2019). With robust institutions, organizations may be more motivated to avoid involvement in corruption because they fear that the exposure of corruption will lead to strong negative consequences for their brand reputations and their market share.…”

Section: Results: a Typology Of Supply Chain Corruption Practicessupporting

confidence: 90%

Supply chain corruption practices circumventing sustainability standards: wolves in sheep's clothing

Silvestre

Viana

Monteiro

2020

IJOPM

View full text Add to dashboard Cite

PurposeA growing number of private, voluntary and mandatory sustainability standards have recently emerged. However, supply chain corruption practices as mechanisms to circumvent sustainability standards have also grown and occur regularly. This paper strives to elaborate theory on the intersection of institutional theory, business corruption and the sustainability standards literature by investigating factors that influence the emergence of supply chain corruption practices.Design/methodology/approachBased on secondary data, four in-depth case studies of supply chain corruption practices are investigated through the use of adaptive theory and the method of constant comparisons to elaborate theory on this important phenomenon.FindingsThe paper suggests that although sustainability standards can improve supply chain sustainability performance, if they are adopted only symbolically and not substantively, unanticipated outcomes such as supply chain corruption may occur. The study proposes a typology of supply chain corruption practices, further explores the symbolic adoption of sustainability standards in supply chains and proposes the novel construct of “social isomorphism for corruption.” Since focal companies play central roles in leading supply chain corruption practices, we reason that they can also play a pivotal role in preventing supply chain corruption practices by promoting the substantive adoption of sustainability standards across their supply chains.Originality/valueThis paper elaborates theory on the challenging phenomenon of corruption in supply chains by linking the supply chain management literature to the corruption and the sustainability discourses and offers important insights to aid our understanding on the topic. It generates six propositions and four contributions to the sustainable supply chain management theory, practice and policy.

show abstract

Section: Results: a Typology Of Supply Chain Corruption Practicessupporting

confidence: 90%

Supply chain corruption practices circumventing sustainability standards: wolves in sheep's clothing

Silvestre

Viana

Monteiro

2020

IJOPM

View full text Add to dashboard Cite

show abstract

“…These debates are further complicated by the likelihood that other trajectories may be at work, with research showing that the direction of causality of these relationships may in fact be reversed (Méon & Sekkat, 2005 ; Yi et al, 2019 ). Considering that it may be corruption that impacts globalization and/or development, research has commonly characterized corruption as a negative force (Jensen, Li, & Rahman, 2010 ).…”

Section: The Role Of Corruption In the Globalization–development Relamentioning

confidence: 99%

“…Krammer ( 2017 ) similarly found that corruption had a positive effect on start-up business formation in contexts with onerous national-level regulations. Under this view, corruption may act as a type of efficiency-enhancing mechanism in weak institutional environments (Yi et al, 2019 ).…”

Section: The Role Of Corruption In the Globalization–development Relamentioning

confidence: 99%

Globalization, economic development, and corruption: A cross-lagged contingency perspective

Aïssaoui

Fabian

2021

J Int Bus Policy

View full text Add to dashboard Cite

The 2020 health and economic crisis has exacerbated tensions and debates over whether globalization benefits economic development, as countries face both pressures to enhance economic opportunities through globalization and populist movements seeking protection from global forces. We first review perspectives that offer competing evidence about the role of globalization in regard to economic development and corruption. Drawing on resource dependence and institutional theory, we test the two contingencies of the country’s stage of economic development (low, lower-middle, upper-middle, high) and the globalization dimension (economic, social, political) at play to reconcile competing findings. Using a cross-lagged panel design, we show that these contingencies significantly explain when and what type of globalization can benefit a country’s economy and affect corruption. In doing so, the study provides a platform for future research, and identifies important patterns that can better guide policymaking. Among other results, we find low-income countries’ GDP and corruption benefit the most from the formal dimensions of globalization. With increased wealth, countries are more responsive to the legitimacy accrued with the informal dimensions of globalization, which we find comes at the expense of economic efficiency for high-income countries.

show abstract

“…Selain itu, kontrol korupsi yang lebih tinggi bisa memperbesar aliran investasi dari negara-negara dengan level korupsi yang rendah sehingga meningkatkan kelembagaan ekonomi dan politik negara tujuan (Belgibayeva dan Plekhanov, 2019). Jika suatu negara belum memiliki investasi asing yang signifikan, mengurangi korupsi berpotensi meningkatkan investasi perusahaan multinasional di negara tersebut (Yi et al, 2019).…”

Section: Tinjauan Teoretisunclassified

Dampak Pertumbuhan Ekonomi, Kontrol Korupsi, Dan Yield Terhadap Investasi Asing Di Pasar Sun

Rahmawati

Makaliwe

2021

EKUITAS

View full text Add to dashboard Cite

Foreign investment in debt securities in Indonesia continues to grow. Foreign investor ownership in Government Securities (SUN) reached 39% at the end of 2019 from initially only less than 1% at the end of 2002. Foreign investor hold the largest ownership in tradable Government Securities. This study discusses the push and pull factors of foreign portfolio in debt securities investment in emerging markets and Indonesia on the period of 2000-2017. This research uses quantitative methods with panel data analysis. The results showed that economic growth, corruption control, dan financial openness were the main pull factors for foreign investment in debt instruments in emerging markets. Low yield in developed countries was the push factor of foreign investment in debt securities into emerging markets. In addition to economic growth and corruption control, yield on local debt instruments attract foreign investment in debt securities in Indonesia. The results showed that the yield on local debt securities have a negative effect on foreign investment in Indonesian debt securities so that the government does not need to provide too high yield on Government Securities.

show abstract

Corruption and foreign direct investment phases: The moderating role of institutions

Cited by 34 publications

References 68 publications

Supply chain corruption practices circumventing sustainability standards: wolves in sheep's clothing

Supply chain corruption practices circumventing sustainability standards: wolves in sheep's clothing

Globalization, economic development, and corruption: A cross-lagged contingency perspective

Dampak Pertumbuhan Ekonomi, Kontrol Korupsi, Dan Yield Terhadap Investasi Asing Di Pasar Sun

Contact Info

Product

Resources

About