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Asymmetric effect of institutional distance: MNE subsidiaries' bribery in transition economies

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  • Kyeungrae Oh

Abstract

I examine how the corruption distance affects MNE subsidiaries' bribing patterns in 24 transition economies. This study challenges the conventional conceptualisation of institutional distance in prior research by adopting asymmetric features of corruption distance. The study finds that the higher the corruption difference, the less likely an MNE subsidiary is to bribe government officials when the subsidiary comes from less corrupt countries, but the more likely the subsidiary is to bribe when it comes from more corrupt countries than the host countries. It indicates that the distance effect of corruption distance is not symmetric but asymmetric.

Suggested Citation

  • Kyeungrae Oh, 2016. "Asymmetric effect of institutional distance: MNE subsidiaries' bribery in transition economies," International Journal of Multinational Corporation Strategy, Inderscience Enterprises Ltd, vol. 1(1), pages 18-43.
    • Handle: RePEc:ids:ijmcst:v:1:y:2016:i:1:p:18-43
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    Cited by:

    1. 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.
    2. Jiangyong Lu & Seong-jin Choi & Alfredo Jiménez & Secil Bayraktar, 2023. "Bribery in emerging economies: an integration of institutional and non-market position perspective," Asia Pacific Journal of Management, Springer, vol. 40(1), pages 205-242, March.

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