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Cronyism: a cross-cultural analysis

Author

Listed:
  • Naresh Khatri

    (Health Management and Informatics, University of Missouri, Columbia, USA)

  • Eric W K Tsang

    (Business Department, Wayne State University, Detroit, USA)

  • Thomas M Begley

    ([1] 3Department of Management, University College Dublin, Ireland [2] 4International Management Group, Northeastern University, Boston, USA)

Abstract

The devastating economic effects of the Asian financial crisis and US corporate scandals have underscored the need to strengthen corporate governance provisions. Although cronyism has been suggested as a leading cause of the two crises, it has received little attention from scholars. In this paper, we analyze the concept of cronyism and argue that it comes in various guises arising from different motivational bases and power dependence relations. We distinguish cronyism from related constructs and posit that it is a form of corruption with different dynamics from other forms. We advance propositions on its likelihood of occurrence across cultures and develop a typology of cronyist exchanges. Journal of International Business Studies (2006) 37, 61–75. doi:10.1057/palgrave.jibs.8400171

Suggested Citation

  • Naresh Khatri & Eric W K Tsang & Thomas M Begley, 2006. "Cronyism: a cross-cultural analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(1), pages 61-75, January.
    • Handle: RePEc:pal:jintbs:v:37:y:2006:i:1:p:61-75
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