IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2105.11829.html
   My bibliography  Save this paper

Perception of corruption influences entrepreneurship inside established companies

Author

Listed:
  • F. Javier Sanchez-Vidal
  • Camino Ramon-Llorens

Abstract

Based on the Global Entrepreneurship Monitor (GEM) surveys and conducting a panel data estimation to test our hypothesis, this paper examines whether corruption perceptions might sand or grease the wheels for entrepreneurship inside companies or intrapreneurship in a sample of 92 countries for the period 2012 to 2019. Our results find that the corruption perception sands the wheel for intrapreneurship. There is evidence of a quadratic relation, but this relation is only clear for the less developed countries, which sort of moderate the very negative effect of corruption for these countries. The results also confirm that corruption influences differently on intrapreneurship depending on the level of development of the country.

Suggested Citation

  • F. Javier Sanchez-Vidal & Camino Ramon-Llorens, 2021. "Perception of corruption influences entrepreneurship inside established companies," Papers 2105.11829, arXiv.org.
    • Handle: RePEc:arx:papers:2105.11829
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2105.11829
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Francesco Ceresia & Claudio Mendola, 2019. "Entrepreneurial Self-Identity, Perceived Corruption, Exogenous and Endogenous Obstacles as Antecedents of Entrepreneurial Intention in Italy," Social Sciences, MDPI, vol. 8(2), pages 1-18, February.
    2. Beynon, Malcolm J. & Jones, Paul & Pickernell, David, 2016. "Country-based comparison analysis using fsQCA investigating entrepreneurial attitudes and activity," Journal of Business Research, Elsevier, vol. 69(4), pages 1271-1276.
    3. Axel Dreher & Martin Gassebner, 2013. "Greasing the wheels? The impact of regulations and corruption on firm entry," Public Choice, Springer, vol. 155(3), pages 413-432, June.
    4. Aidis, Ruta & Estrin, Saul & Mickiewicz, Tomasz, 2008. "Institutions and entrepreneurship development in Russia: A comparative perspective," Journal of Business Venturing, Elsevier, vol. 23(6), pages 656-672, November.
    5. Francisco Liñán & José Fernandez-Serrano, 2014. "National culture, entrepreneurship and economic development: different patterns across the European Union," Small Business Economics, Springer, vol. 42(4), pages 685-701, April.
    6. Beynon, Malcolm J. & Jones, Paul & Pickernell, David, 2018. "Entrepreneurial climate and self-perceptions about entrepreneurship: a country comparison using fsQCA with dual outcomes," Journal of Business Research, Elsevier, vol. 89(C), pages 418-428.
    7. Nabamita Dutta & Russell Sobel, 2016. "Does corruption ever help entrepreneurship?," Small Business Economics, Springer, vol. 47(1), pages 179-199, June.
    8. F. Javier Sánchez-Vidal & Myriam Hernández-Robles & Antonio Mínguez-Vera, 2020. "Financial conservatism fosters job creation during economic crises," Applied Economics, Taylor & Francis Journals, vol. 52(45), pages 4913-4926, September.
    9. Sander Wennekers & André Stel & Roy Thurik & Paul Reynolds, 2008. "Nascent entrepreneurship and the level of economic development," Small Business Economics, Springer, vol. 30(3), pages 325-325, March.
    10. Robin Douhan & Magnus Henrekson, 2010. "Entrepreneurship and second-best institutions: going beyond Baumol’s typology," Journal of Evolutionary Economics, Springer, vol. 20(4), pages 629-643, August.
    11. 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.
    12. Alessandra Allini & Luca Ferri & Marco Maffei & Annamaria Zampella, 2017. "The Effect of Perceived Corruption on Entrepreneurial Intention: Evidence from Italy," International Business Research, Canadian Center of Science and Education, vol. 10(6), pages 75-86, June.
    13. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
    14. Pekka Stenholm & Zoltán J. Ács & Robert Wuebker, 2015. "Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 20, pages 387-404, Edward Elgar Publishing.
    15. Brian Lucey & Javier Sánchez-Vidal & Ciaran MacAnBhaird & Constantin Gurdgiev, 2012. "What determines the decision to apply for credit? Evidence for Eurozone SMEs," The Institute for International Integration Studies Discussion Paper Series iiisdp415, IIIS.
    16. Ruta Aidis & Julia Korosteleva & Tomasz Marek Mickiewicz, 2008. "Entrepreneurship in Russia," UCL SSEES Economics and Business working paper series 88, UCL School of Slavonic and East European Studies (SSEES).
    17. Ratan J. S. Dheer, 2017. "Cross-national differences in entrepreneurial activity: role of culture and institutional factors," Small Business Economics, Springer, vol. 48(4), pages 813-842, April.
    18. Harbi, Sana El & Anderson, Alistair R., 2010. "Institutions and the shaping of different forms of entrepreneurship," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(3), pages 436-444, June.
    19. Petra C. M. Neessen & Marjolein C. J. Caniëls & Bart Vos & Jeroen P. Jong, 2019. "The intrapreneurial employee: toward an integrated model of intrapreneurship and research agenda," International Entrepreneurship and Management Journal, Springer, vol. 15(2), pages 545-571, June.
    20. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters, in: Understanding the Process of Economic Change, Princeton University Press.
    21. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    22. Dunn, Thomas & Holtz-Eakin, Douglas, 2000. "Financial Capital, Human Capital, and the Transition to Self-Employment: Evidence from Intergenerational Links," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 282-305, April.
    23. La Rocca, Maurizio & La Rocca, Tiziana & Sánchez Vidal, F. Javier, 2018. "Multibusiness Firms And Performance In Italy. What Role Does Relatedness Play?," European Research on Management and Business Economics (ERMBE), Academia Europea de Dirección y Economía de la Empresa (AEDEM), vol. 24(2), pages 63-70.
    24. David Urbano & Claudia Alvarez, 2014. "Institutional dimensions and entrepreneurial activity: an international study," Small Business Economics, Springer, vol. 42(4), pages 703-716, April.
    Full references (including those not matched with items on IDEAS)

    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. Sánchez-Vidal, F. Javier & Ramón-Llorens, M. Camino & La Rocca, Maurizio, 2024. "Corruption and intrapreneurship," International Business Review, Elsevier, vol. 33(1).
    2. Aparicio, Sebastian & Urbano, David & Audretsch, David, 2016. "Institutional factors, opportunity entrepreneurship and economic growth: Panel data evidence," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 45-61.
    3. Francesco Ceresia & Claudio Mendola, 2019. "The Effects of Corruption in Entrepreneurial Ecosystems on Entrepreneurial Intentions," Administrative Sciences, MDPI, vol. 9(4), pages 1-14, November.
    4. Barinova, Vera (Баринова, Вера) & Zemtsov, Stepan (Земцов, Степан) & Tsareva, Yulia (Царева, Юлия), 2018. "Review of Empirical Studies of Factors of Entrepreneurial Activity [Обзор Эмпирических Исследований Факторов Предпринимательской Активности]," Working Papers 031830, Russian Presidential Academy of National Economy and Public Administration.
    5. Ivano Dileo & Thaís García Pereiro, 2019. "Assessing the impact of individual and context factors on the entrepreneurial process. A cross-country multilevel approach," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1393-1441, December.
    6. Miao, Chao & Gast, Johanna & Laouiti, Rahma & Nakara, Walid, 2022. "Institutional factors, religiosity, and entrepreneurial activity: A quantitative examination across 85 countries," World Development, Elsevier, vol. 149(C).
    7. David Urbano & Sebastian Aparicio & David Audretsch, 2019. "Twenty-five years of research on institutions, entrepreneurship, and economic growth: what has been learned?," Small Business Economics, Springer, vol. 53(1), pages 21-49, June.
    8. Diana Escandon-Barbosa & David Urbano-Pulido & Andrea Hurtado-Ayala, 2019. "Exploring the Relationship between Formal and Informal Institutions, Social Capital, and Entrepreneurial Activity in Developing and Developed Countries," Sustainability, MDPI, vol. 11(2), pages 1-20, January.
    9. David Urbano & Sebastian Aparicio & Victor Querol, 2016. "Social progress orientation and innovative entrepreneurship: an international analysis," Journal of Evolutionary Economics, Springer, vol. 26(5), pages 1033-1066, December.
    10. Diana Traikova & Tatiana S. Manolova & Judith Möllers & Gertrud Buchenrieder, 2017. "Corruption Perceptions And Entrepreneurial Intentions In A Transitional Context–The Case Of Rural Bulgaria," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-21, September.
    11. Ali Hussein Samadi, 2019. "Institutions and entrepreneurship: unidirectional or bidirectional causality?," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-16, December.
    12. David Urbano & Claudia Alvarez, 2014. "Institutional dimensions and entrepreneurial activity: an international study," Small Business Economics, Springer, vol. 42(4), pages 703-716, April.
    13. Urbano, David & Aparicio, Sebastian & Guerrero, Maribel & Noguera, Maria & Torrent-Sellens, Joan, 2017. "Institutional determinants of student employer entrepreneurs at Catalan universities," Technological Forecasting and Social Change, Elsevier, vol. 123(C), pages 271-282.
    14. Luca Farè & David B. Audretsch & Marcus Dejardin, 2023. "Does democracy foster entrepreneurship?," Small Business Economics, Springer, vol. 61(4), pages 1461-1495, December.
    15. Ratan J. S. Dheer, 2017. "Cross-national differences in entrepreneurial activity: role of culture and institutional factors," Small Business Economics, Springer, vol. 48(4), pages 813-842, April.
    16. David Urbano & David Audretsch & Sebastian Aparicio & Maria Noguera, 2020. "Does entrepreneurial activity matter for economic growth in developing countries? The role of the institutional environment," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 1065-1099, September.
    17. R. Sandra Schillo & Ajax Persaud & Meng Jin, 2016. "Entrepreneurial readiness in the context of national systems of entrepreneurship," Small Business Economics, Springer, vol. 46(4), pages 619-637, April.
    18. Ghulam, Yaseen, 2021. "Institutions and firms’ technological changes and productivity growth," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    19. Audretsch, David B. & Belitski, Maksim & Caiazza, Rosa & Desai, Sameeksha, 2022. "The role of institutions in latent and emergent entrepreneurship," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    20. Abd Rashid, Suliza & Masron, Tajul Ariffin & Malim, Nurhafiza Abdul Kader, 2023. "The effect of corruption on entrepreneurship in the presence of weak regulatory quality: Evidence from developing countries," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:arx:papers:2105.11829. 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: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    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.