IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v108y2020icp92-104.html
   My bibliography  Save this article

Why is bribery pervasive among firms in sub-Saharan African countries? Multi-industry empirical evidence of organizational isomorphism

Author

Listed:
  • Ufere, Nnaoke
  • Gaskin, James
  • Perelli, Sheri
  • Somers, Antoinette
  • Boland, Richard

Abstract

Motivated by the prevalence and persistence of corruption in Sub-Saharan Africa (SSA) despite high-profile anti-corruption efforts, and by calls for more research on unethical organizational behavior by firms in Africa, we investigated the link between bribery in 12 SSA countries and the phenomenon of organizational isomorphism, long used to explain legitimate, but rarely, illegitimate firm practices. Analysis of 5989 SSA firms in three distinct industries known for high levels of bribery reveals direct positive relationships between bribery and its perception as frequently practiced in specific industries (“mimetic isomorphic effect”); institutional constraints on businesses (“coercive isomorphic effect”); and local market rivalry (“competitive isomorphic effect”). Institutional coercion is the strongest determinant of bribery, while imitation and competitive rivalry routinize the practice. However, the effect of isomorphic pressures on bribery practices varies across industries. Therefore, institutional redesigns, policy remediations and managerial actions to mitigate bribery must consider the cross-industry variations.

Suggested Citation

  • Ufere, Nnaoke & Gaskin, James & Perelli, Sheri & Somers, Antoinette & Boland, Richard, 2020. "Why is bribery pervasive among firms in sub-Saharan African countries? Multi-industry empirical evidence of organizational isomorphism," Journal of Business Research, Elsevier, vol. 108(C), pages 92-104.
    • Handle: RePEc:eee:jbrese:v:108:y:2020:i:c:p:92-104
    DOI: 10.1016/j.jbusres.2019.09.060
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296319305648
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2019.09.060?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wanasika, Isaac & Howell, Jon P. & Littrell, Romie & Dorfman, Peter, 2011. "Managerial Leadership and Culture in Sub-Saharan Africa," Journal of World Business, Elsevier, vol. 46(2), pages 234-241, April.
    2. Paul Collier, 2000. "How to Reduce Corruption," African Development Review, African Development Bank, vol. 12(2), pages 191-205.
    3. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1203-1250.
    4. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    5. Kwabena Gyimah-Brempong, 2002. "Corruption, economic growth, and income inequality in Africa," Economics of Governance, Springer, vol. 3(3), pages 183-209, November.
    6. Bertrand Venard, 2009. "Organizational isomorphism and corruption: An empirical research in Russia," Post-Print hal-00771102, HAL.
    7. d'Agostino, G. & Dunne, J.P. & Pieroni, L., 2016. "Corruption and growth in Africa," European Journal of Political Economy, Elsevier, vol. 43(C), pages 71-88.
    8. Bertrand Venard, 2008. "Organizational isomorphism and corruption," Post-Print hal-00760557, HAL.
    9. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2002. "The Regulation of Entry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 1-37.
    10. Frye, Timothy & Zhuravskaya, Ekaterina, 2000. "Rackets, Regulation, and the Rule of Law," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 16(2), pages 478-502, October.
    11. Méon, Pierre-Guillaume & Weill, Laurent, 2010. "Is Corruption an Efficient Grease?," World Development, Elsevier, vol. 38(3), pages 244-259, March.
    12. Pierre-Guillaume Méon & Khalid Sekkat, 2005. "Does corruption grease or sand the wheels of growth?," Public Choice, Springer, vol. 122(1), pages 69-97, January.
    13. O’Higgins, Eleanor R. E., 2006. "Corruption, Underdevelopment, and Extractive Resource Industries: Addressing the Vicious Cycle," Business Ethics Quarterly, Cambridge University Press, vol. 16(2), pages 235-254, April.
    14. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
    15. Jarvis, Cheryl Burke & MacKenzie, Scott B & Podsakoff, Philip M, 2003. "A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 199-218, September.
    16. Coolidge, Jacqueline & Rose-Ackerman, Susan, 1997. "High-level rent-seeking and corruption in African regimes : theory and cases," Policy Research Working Paper Series 1780, The World Bank.
    17. Samuel Adams & Edem Kwame Mensah Klobodu, 2016. "Financial development, control of corruption and income inequality," International Review of Applied Economics, Taylor & Francis Journals, vol. 30(6), pages 790-808, November.
    18. Huarng, Kun-Huang, 2015. "Configural theory for ICT development," Journal of Business Research, Elsevier, vol. 68(4), pages 748-756.
    19. Cuervo-Cazurra, Alvaro, 2016. "Corruption in international business," Journal of World Business, Elsevier, vol. 51(1), pages 35-49.
    20. Nathan M Jensen & Quan Li & Aminur Rahman, 2010. "Understanding corruption and firm responses in cross-national firm-level surveys," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(9), pages 1481-1504, December.
    21. Vartuhí Tonoyan & Robert Strohmeyer & Mohsin Habib & Manfred Perlitz, 2010. "Corruption and Entrepreneurship: How Formal and Informal Institutions Shape Small Firm Behavior in Transition and Mature Market Economies," Entrepreneurship Theory and Practice, , vol. 34(5), pages 803-832, September.
    22. Celentani, Marco & Ganuza, Juan-Jose, 2002. "Corruption and competition in procurement," European Economic Review, Elsevier, vol. 46(7), pages 1273-1303, July.
    23. Yang, Defeng & Sheng, Shibin & Wu, Shuilong & Zhou, Kevin Zheng, 2018. "Suppressing partner opportunism in emerging markets: Contextualizing institutional forces in supply chain management," Journal of Business Research, Elsevier, vol. 90(C), pages 1-13.
    24. Fredriksson, Per G. & Svensson, Jakob, 2003. "Political instability, corruption and policy formation: the case of environmental policy," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1383-1405, August.
    25. Jean-Jacques Dethier & Maximilian Hirn & Stéphane Straub, 2011. "Explaining Enterprise Performance in Developing Countries with Business Climate Survey Data," The World Bank Research Observer, World Bank, vol. 26(2), pages 258-309, August.
    26. Liu, Baohua & Lin, Yan & Chan, Kam C. & Fung, Hung-Gay, 2018. "The dark side of rent-seeking: The impact of rent-seeking on earnings management," Journal of Business Research, Elsevier, vol. 91(C), pages 94-107.
    27. Bertrand Venard & Mohamed Hanafi, 2008. "Organizational Isomorphism and Corruption in Financial Institutions: Empirical Research in Emerging Countries," Journal of Business Ethics, Springer, vol. 81(2), pages 481-498, August.
    28. Barr, Abigail, 2000. "Social Capital and Technical Information Flows in the Ghanaian Manufacturing Sector," Oxford Economic Papers, Oxford University Press, vol. 52(3), pages 539-559, July.
    29. Hannu Tanninen, 1999. "Income inequality, government expenditures and growth," Applied Economics, Taylor & Francis Journals, vol. 31(9), pages 1109-1117.
    30. Shang-Jin Wei, 2000. "How Taxing is Corruption on International Investors?," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 1-11, February.
    31. Jamie Collins & Klaus Uhlenbruck & Peter Rodriguez, 2009. "Why Firms Engage in Corruption: A Top Management Perspective," Journal of Business Ethics, Springer, vol. 87(1), pages 89-108, June.
    32. Benn Eifert & Alan Gelb & Vijaya Ramachandran, 2005. "Business Environment and Comparative Advantage in Africa: Evidence from the Investment Climate Data," Working Papers 56, Center for Global Development.
    33. Mark Casson & Sarianna M. Lundan, 1999. "Explaining International Differences in Economic Institutions," International Studies of Management & Organization, Taylor & Francis Journals, vol. 29(2), pages 25-42, June.
    34. Stein Kristiansen, 2004. "Social Networks and Business Success," American Journal of Economics and Sociology, Wiley Blackwell, vol. 63(5), pages 1149-1171, November.
    35. Martin, Kelly D. & Johnson, Jean L. & Cullen, John B., 2009. "Organizational Change, Normative Control Deinstitutionalization, and Corruption," Business Ethics Quarterly, Cambridge University Press, vol. 19(1), pages 105-130, January.
    36. Brunetti, Aymo & Kisunko, Gregory & Weder, Beatrice, 1998. "Credibility of Rules and Economic Growth: Evidence from a Worldwide Survey of the Private Sector," The World Bank Economic Review, World Bank, vol. 12(3), pages 353-384, September.
    37. North, Douglass C, 1994. "Economic Performance through Time," American Economic Review, American Economic Association, vol. 84(3), pages 359-368, June.
    38. Ronald D. Picur & Ahmed Riahi-Belkaoui, 2006. "The impact of bureaucracy, corruption and tax compliance," Review of Accounting and Finance, Emerald Group Publishing, vol. 5(2), pages 174-180, May.
    39. Safavian, Mehnaz S. & Sheldon, Ian M. & Graham, Douglas H. & Gonzalez-Vega, Claudio, 2001. "The Differential Impact Of Corruption On Microenterprises In Russia," 2001 Annual meeting, August 5-8, Chicago, IL 20495, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    40. Daniel N. Posner, 2004. "Measuring Ethnic Fractionalization in Africa," American Journal of Political Science, John Wiley & Sons, vol. 48(4), pages 849-863, October.
    41. Bertrand Venard & Mohamed Hanafi, 2008. "Organizational isomorphism and corruption in financial institutions. An empirical research in emerging countries," Post-Print hal-00765483, HAL.
    42. Léonce Ndikumana & Mina Baliamoune-Lutz, 2008. "Corruption and Growth: Exploring the Investment Channel," UMASS Amherst Economics Working Papers 2008-08, University of Massachusetts Amherst, Department of Economics.
    43. Thorsten Beck & Asli Demirgüç‐Kunt & Vojislav Maksimovic, 2005. "Financial and Legal Constraints to Growth: Does Firm Size Matter?," Journal of Finance, American Finance Association, vol. 60(1), pages 137-177, February.
    44. Kent D. Miller & Brian T. Pentland & Seungho Choi, 2012. "Dynamics of Performing and Remembering Organizational Routines," Journal of Management Studies, Wiley Blackwell, vol. 49(8), pages 1536-1558, December.
    45. Ufere, Nnaoke & Perelli, Sheri & Boland, Richard & Carlsson, Bo, 2012. "Merchants of Corruption: How Entrepreneurs Manufacture and Supply Bribes," World Development, Elsevier, vol. 40(12), pages 2440-2453.
    46. Dani Rodrik, 2008. "Second-Best Institutions," American Economic Review, American Economic Association, vol. 98(2), pages 100-104, May.
    47. Barkemeyer, Ralf & Preuss, Lutz & Ohana, Marc, 2018. "Developing country firms and the challenge of corruption: Do company commitments mirror the quality of national-level institutions?," Journal of Business Research, Elsevier, vol. 90(C), pages 26-39.
    48. Rafael Di Tella & Alberto Ades, 1999. "Rents, Competition, and Corruption," American Economic Review, American Economic Association, vol. 89(4), pages 982-993, September.
    49. Safavian, Mehnaz S. & Graham, Douglas H. & Gonzalez-Vega, Claudio, 2001. "Corruption and Microenterprises in Russia," World Development, Elsevier, vol. 29(7), pages 1215-1224, July.
    50. Yongqiang Gao, 2010. "Mimetic isomorphism, market competition, perceived benefit and bribery of firms in transitional China," Australian Journal of Management, Australian School of Business, vol. 35(2), pages 203-222, August.
    51. Lorenzo Pellegrini & Reyer Gerlagh, 2008. "Causes of corruption: a survey of cross-country analyses and extended results," Economics of Governance, Springer, vol. 9(3), pages 245-263, July.
    52. Dickel, Petra & Graeff, Peter, 2018. "Entrepreneurs' propensity for corruption: A vignette-based factorial survey," Journal of Business Research, Elsevier, vol. 89(C), pages 77-86.
    53. Paul A. Pavlou & David Gefen, 2005. "Psychological Contract Violation in Online Marketplaces: Antecedents, Consequences, and Moderating Role," Information Systems Research, INFORMS, vol. 16(4), pages 372-399, December.
    54. Clarke, George R. G. & Xu, Lixin Colin, 2004. "Privatization, competition, and corruption: how characteristics of bribe takers and payers affect bribes to utilities," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2067-2097, August.
    55. Ralf Barkemeyer & Lutz Preuss & Marc Ohana, 2018. "Developing country firms and the challenge of corruption: Do company commitments mirror the quality of national-level institutions?," Post-Print hal-02390172, HAL.
    56. Reinikka, Ritva & Svensson, Jakob, 2006. "Using Micro-Surveys to Measure and Explain Corruption," World Development, Elsevier, vol. 34(2), pages 359-370, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Athreye, Suma & Saeed, Abubakr & Saad Baloch, Muhammad, 2023. "The survival of outward investments from China and India: Is there a North-South divide?," Journal of Business Research, Elsevier, vol. 154(C).
    2. Zhou, Kevin Zheng & Wang, Kui & Xu, Dean & Xie, En, 2022. "Drinking poison to quench thirst: Does bribery foster firm performance in China?," Journal of Business Research, Elsevier, vol. 147(C), pages 505-517.
    3. Simplice A. Asongu & Samba Diop, 2025. "Bribing to Escape Poverty in Africa," International Journal of Public Administration, Taylor & Francis Journals, vol. 48(1), pages 30-42, January.
    4. Cheng, Peng & Wei, Jiuchang & Liu, Yang, 2024. "Give a plum in return for a peach: The effect of entrepreneurial informal financing on environmental corporate social responsibility," Journal of Business Research, Elsevier, vol. 175(C).
    5. Adamu Jibir & Musa Abdu & Tasiu Muhammad, 2020. "Analysis of Tax Compliance in Sub-Saharan Africa: Evidence from Firm-Level Study," Econometric Research in Finance, SGH Warsaw School of Economics, Collegium of Economic Analysis, vol. 5(2), pages 119-142, December.
    6. Jiménez, Alfredo & Hanoteau, Julien & Barkemeyer, Ralf, 2022. "E-procurement and firm corruption to secure public contracts: The moderating role of governance institutions and supranational support," Journal of Business Research, Elsevier, vol. 149(C), pages 640-650.
    7. Lee, Jeoung Yul & Jiménez, Alfredo & Choi, Seong-jin & Choi, Yun Hyeong, 2022. "Ideological polarization and corporate lobbying activity: The contingent impact of corruption distance," Journal of Business Research, Elsevier, vol. 141(C), pages 448-461.
    8. Debmalya Mukherjee & Saumyaranjan Sahoo & Satish Kumar, 2023. "Two Decades of International Business and International Management Scholarship on Africa: A Review and Future Directions," Management International Review, Springer, vol. 63(6), pages 863-909, December.
    9. Troisi, Roberta, 2022. "Illegal land use by Italian firms: An empirical analysis through the lens of isomorphism," Land Use Policy, Elsevier, vol. 121(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Krisztina Kis-Katos & Günther G. Schulze, 2013. "Corruption in Southeast Asia: a survey of recent research," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 27(1), pages 79-109, May.
    2. Ufere, Nnaoke & Perelli, Sheri & Boland, Richard & Carlsson, Bo, 2012. "Merchants of Corruption: How Entrepreneurs Manufacture and Supply Bribes," World Development, Elsevier, vol. 40(12), pages 2440-2453.
    3. Noman Shaheer & Jingtao Yi & Sali Li & Liang Chen, 2019. "State-Owned Enterprises as Bribe Payers: The Role of Institutional Environment," Journal of Business Ethics, Springer, vol. 159(1), pages 221-238, September.
    4. Blaise Gnimassoun, Joseph Keneck Massil, 2019. "Determinants of corruption: can we put all countries in the same basket?," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 16(2), pages 239-276, December.
    5. Zakharov, Nikita, 2019. "Does corruption hinder investment? Evidence from Russian regions," European Journal of Political Economy, Elsevier, vol. 56(C), pages 39-61.
    6. Aidt, Toke & Dutta, Jayasri & Sena, Vania, 2008. "Governance regimes, corruption and growth: Theory and evidence," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 195-220, June.
    7. Blaise Gnimassoun & Joseph Keneck Massil, 2016. "Determinants of corruption: Can we put all countries in the same basket?," Working Papers hal-04141599, HAL.
    8. repec:pdn:wpaper:79 is not listed on IDEAS
    9. repec:pdn:wpaper:70 is not listed on IDEAS
    10. Colin C. Williams & Abbi M. Kedir, 2016. "The Impacts Of Corruption On Firm Performance: Some Lessons From 40 African Countries," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 21(04), pages 1-18, December.
    11. Krifa-Schneider, Hadjila & Matei, Iuliana & Sattar, Abdul, 2022. "FDI, corruption and financial development around the world: A panel non-linear approach," Economic Modelling, Elsevier, vol. 110(C).
    12. Bin Dong & Benno Torgler, 2010. "The Consequences of Corruption: Evidence from China," Working Papers 2010.73, Fondazione Eni Enrico Mattei.
    13. Graf Lambsdorff, Johann, 2005. "Consequences and causes of corruption: What do we know from a cross-section of countries?," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-34-05, University of Passau, Faculty of Business and Economics.
    14. Eugen Dimant & Guglielmo Tosato, 2018. "Causes And Effects Of Corruption: What Has Past Decade'S Empirical Research Taught Us? A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 335-356, April.
    15. Marcus Dejardin & Hélène Laurent, 2024. "Entry-regulation and corruption: grease or sand in the wheels of entrepreneurship? Fresh evidence according to entrepreneurial motives," Small Business Economics, Springer, vol. 62(3), pages 1223-1272, March.
    16. Noel Johnson & William Ruger & Jason Sorens & Steven Yamarik, 2014. "Corruption, regulation, and growth: an empirical study of the United States," Economics of Governance, Springer, vol. 15(1), pages 51-69, February.
    17. Cooray, Arusha & Dzhumashev, Ratbek & Schneider, Friedrich, 2017. "How Does Corruption Affect Public Debt? An Empirical Analysis," World Development, Elsevier, vol. 90(C), pages 115-127.
    18. Lee, Mina & Mutlu, Canan & Lee, Seung-Hyun, 2023. "Bribery and Firm Growth: Sensemaking in CEE and Post-Soviet Countries," Journal of International Management, Elsevier, vol. 29(1).
    19. Filipe R. Campante & Davin Chor & Quoc‐Anh Do, 2009. "Instability And The Incentives For Corruption," Economics and Politics, Wiley Blackwell, vol. 21(1), pages 42-92, March.
    20. Andrew Hodge & Sriram Shankar & D. S. Prasada Rao & Alan Duhs, 2011. "Exploring the Links Between Corruption and Growth," Review of Development Economics, Wiley Blackwell, vol. 15(3), pages 474-490, August.
    21. Leyla Orudzheva & Manjula S. Salimath & Robert Pavur, 2020. "Vortex of Corruption: Longitudinal Analysis of Normative Pressures in Top Global Companies," Journal of Business Ethics, Springer, vol. 163(3), pages 529-551, May.
    22. Alfredo Monte & Luca Pennacchio, 0. "Corruption, Government Expenditure and Public Debt in OECD Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 0, pages 1-33.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:108:y:2020:i:c:p:92-104. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.