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Shining a Light on the Dark Side of Business:The Resistible Growth of Criminal Firms in the Public Sector

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  • Paolo Canonico
  • Stefano Consiglio
  • Ernesto De Nito
  • Gianluigi Mangia

Abstract

In this paper, we analyze the mechanisms adopted by criminal firms in order to thrive in the business of public works. We submit that resource dependency theory (RDT) can shed light on this area. We find that criminal firms use a variety of techniques to alter the behavior of actors in procurement processes. We claim that the best way to analyze this phenomenon is by integrating the traditional RDT strategies codified in Pfeffer and Salancik (1978) with an understanding of these criminal techniques. We adopt a qualitative research methodology, relying on official judiciary sources in order to develop and validate the concept’s objects of analysis. Our work has been supported by leading Italian magistrates actively engaged in combating the penetration of criminal firms into legal businesses.

Suggested Citation

  • Paolo Canonico & Stefano Consiglio & Ernesto De Nito & Gianluigi Mangia, 2012. "Shining a Light on the Dark Side of Business:The Resistible Growth of Criminal Firms in the Public Sector," International Review of Public Administration, Taylor & Francis Journals, vol. 17(1), pages 149-177, April.
    • Handle: RePEc:taf:rrpaxx:v:17:y:2012:i:1:p:149-177
    DOI: 10.1080/12264431.2012.10805221
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    References listed on IDEAS

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    1. Riccardo Mercurio & Paolo Canonico & Mario Pezzillo Iacono, 2012. "Organizing mobility as an infrastructure for development," Chapters, in: Peter Karl Kresl & Daniele Ietri (ed.), European Cities and Global Competitiveness, chapter 14, pages 259-273, Edward Elgar Publishing.
    2. Mr. Vito Tanzi & Mr. Hamid R Davoodi, 1997. "Corruption, Public Investment, and Growth," IMF Working Papers 1997/139, International Monetary Fund.
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    Cited by:

    1. Ravenda, Diego & Giuranno, Michele G. & Valencia-Silva, Maika M. & Argiles-Bosch, Josep M. & García-Blandón, Josep, 2020. "The effects of mafia infiltration on public procurement performance," European Journal of Political Economy, Elsevier, vol. 64(C).
    2. Di Giorno, Saverio & Dileo, Ivano & Busato, Francesco, 2024. "Shades of grand corruption among allocative efficiency and institutional settings. The case of Italy," Socio-Economic Planning Sciences, Elsevier, vol. 93(C).

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