IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03990427.html
   My bibliography  Save this paper

E-procurement and firm corruption to secure public contracts: The moderating role of governance institutions and supranational support

Author

Listed:
  • Alfredo Jiménez

    (Kedge BS - Kedge Business School)

  • Julien Hanoteau

    (Kedge BS - Kedge Business School, AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Ralf Barkemeyer

    (Kedge BS - Kedge Business School)

Abstract

This paper investigates the effects of e-procurement on firm corruption to secure public contracts, highlighting the moderating roles of the quality of governance institutions and supranational support in that relationship. Taking transaction cost economics as our theoretical lens, and building on a sample of 8,373 firms in 72 countries from 2008 to 2019, we find that the adoption of an e-procurement system in fact reduces firm corruption. However, this effect is only unveiled once one accounts in the analysis for the quality of country-level governance institutions, which also makes the relationship stronger. We also find an eprocurement system only to effectively address firm corruption when it benefits from supranational support. The study contributes to the ongoing academic debate on the impact of digitalization on corruption.

Suggested Citation

  • Alfredo Jiménez & Julien Hanoteau & Ralf Barkemeyer, 2022. "E-procurement and firm corruption to secure public contracts: The moderating role of governance institutions and supranational support," Post-Print hal-03990427, HAL.
    • Handle: RePEc:hal:journl:hal-03990427
    DOI: 10.1016/j.jbusres.2022.05.070
    Note: View the original document on HAL open archive server: https://hal.science/hal-03990427
    as

    Download full text from publisher

    File URL: https://hal.science/hal-03990427/document
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jbusres.2022.05.070?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Razafindrakoto, Mireille & Roubaud, François, 2010. "Are International Databases on Corruption Reliable? A Comparison of Expert Opinion Surveys and Household Surveys in Sub-Saharan Africa," World Development, Elsevier, vol. 38(8), pages 1057-1069, August.
    2. 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.
    3. Sean Lewis-Faupel & Yusuf Neggers & Benjamin A. Olken & Rohini Pande, 2016. "Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia," American Economic Journal: Economic Policy, American Economic Association, vol. 8(3), pages 258-283, August.
    4. Heeks, Richard, 2005. "e-Government as a Carrier of Context," Journal of Public Policy, Cambridge University Press, vol. 25(1), pages 51-74, May.
    5. Anna Kochanova & Zahid Hasnain & Bradley Larson, 2020. "Does E-Government Improve Government Capacity? Evidence from Tax Compliance Costs, Tax Revenue, and Public Procurement Competitiveness," The World Bank Economic Review, World Bank, vol. 34(1), pages 101-120.
    6. Maxim Mironov & Ekaterina Zhuravskaya, 2016. "Corruption in Procurement and the Political Cycle in Tunneling: Evidence from Financial Transactions Data," American Economic Journal: Economic Policy, American Economic Association, vol. 8(2), pages 287-321, May.
    7. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    8. Jakob Svensson, 2003. "Who Must Pay Bribes and How Much? Evidence from a Cross Section of Firms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 207-230.
    9. Naci Mocan, 2008. "What Determines Corruption? International Evidence From Microdata," Economic Inquiry, Western Economic Association International, vol. 46(4), pages 493-510, October.
    10. Ioannis Ioannou & George Serafeim, 2012. "What drives corporate social performance? The role of nation-level institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(9), pages 834-864, December.
    11. 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.
    12. Chon-Kyun Kim, 2014. "Anti-Corruption Initiatives and E-Government: A Cross-National Study," Public Organization Review, Springer, vol. 14(3), pages 385-396, September.
    13. Fan, Qingji & Kuper, Paul & Choi, Yun Hyeong & Choi, Seong-jin, 2021. "Does ICT development curb firms’ perceived corruption pressure? The contingent impact of institutional qualities and competitive conditions," Journal of Business Research, Elsevier, vol. 135(C), pages 496-507.
    14. repec:cup:jfinqa:v:46:y:2011:i:06:p:1545-1580_00 is not listed on IDEAS
    15. Khan, Anupriya & Krishnan, Satish & Dhir, Amandeep, 2021. "Electronic government and corruption: Systematic literature review, framework, and agenda for future research," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    16. 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.
    17. Michael A Sartor & Paul W Beamish, 2018. "Host market government corruption and the equity-based foreign entry strategies of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(3), pages 346-370, April.
    18. Seri, Paolo & Zanfei, Antonello, 2013. "The co-evolution of ICT, skills and organization in public administrations: Evidence from new European country-level data," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 160-176.
    19. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
    20. Alvaro Cuervo-Cazurra, 2008. "The effectiveness of laws against bribery abroad," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(4), pages 634-651, June.
    21. Petra Christmann & Glen Taylor, 2006. "Firm self-regulation through international certifiable standards: determinants of symbolic versus substantive implementation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 863-878, November.
    22. Patrick Meagher, 2005. "Anti‐corruption agencies: Rhetoric Versus reality," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 8(1), pages 69-103.
    23. Husted, Bryan W., 1994. "Honor Among Thieves: A Transaction-Cost Interpretation of Corruption in Third World Countries," Business Ethics Quarterly, Cambridge University Press, vol. 4(1), pages 17-27, January.
    24. 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.
    25. Elbahnasawy, Nasr G., 2014. "E-Government, Internet Adoption, and Corruption: An Empirical Investigation," World Development, Elsevier, vol. 57(C), pages 114-126.
    26. Knack, Stephen, 2007. "Measuring Corruption: A Critique of Indicators in Eastern Europe and Central Asia," Journal of Public Policy, Cambridge University Press, vol. 27(3), pages 255-291, December.
    27. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    28. Sangeeta Khorana & Kirsten Ferguson-Boucher & William A. Kerr, 2015. "Governance Issues in the EU's e-Procurement Framework," Journal of Common Market Studies, Wiley Blackwell, vol. 53(2), pages 292-310, March.
    29. Cuervo-Cazurra, Alvaro, 2016. "Corruption in international business," Journal of World Business, Elsevier, vol. 51(1), pages 35-49.
    30. Arvind K. Jain, 2001. "Corruption: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 15(1), pages 71-121, February.
    31. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 178-184, February.
    32. Andersen, Thomas Barnebeck, 2009. "E-Government as an anti-corruption strategy," Information Economics and Policy, Elsevier, vol. 21(3), pages 201-210, August.
    33. Ayyagari, Meghana & Demirgüç-Kunt, Asli & Maksimovic, Vojislav, 2011. "Firm Innovation in Emerging Markets: The Role of Finance, Governance, and Competition," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 46(6), pages 1545-1580, December.
    34. 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.
    35. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    36. Schopf, James Christopher, 2019. "Room for improvement: Why Korea's leading ICT ODA program has failed to combat corruption," Telecommunications Policy, Elsevier, vol. 43(6), pages 501-519.
    37. repec:dau:papers:123456789/4352 is not listed on IDEAS
    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. Désiré Avom & Gilles Dufrénot & Sylvie Eyeffa, 2023. "Does ICT access and usage reduce growth inefficiency in Sub-Saharan Africa?," AMSE Working Papers 2306, Aix-Marseille School of Economics, France.
    2. Lee, Jeoung Yul & Park, Byung Il & Ghauri, Pervez N. & Kumar, Vikas, 2024. "Corruptive practices, digitalization, and international business," Journal of Business Research, Elsevier, vol. 181(C).
    3. Lisciandra Maurizio & Miralles Asensio Antonio & Monteforte Fabio, 2024. "Search and Matching in Political Corruption," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 24(1), pages 69-96, January.
    4. Areej Althabatah & Mohammed Yaqot & Brenno Menezes & Laoucine Kerbache, 2023. "Transformative Procurement Trends: Integrating Industry 4.0 Technologies for Enhanced Procurement Processes," Logistics, MDPI, vol. 7(3), pages 1-40, September.
    5. Jiang, Wei & Luo, Daokang & Wang, Liwen & Zheng Zhou, Kevin, 2024. "Foreign ownership and bribery in Chinese listed firms: An institutional perspective," Journal of Business Research, Elsevier, vol. 174(C).
    6. Désiré Avom & Gilles Dufrénot & Sylvie Eyeffa, 2023. "Does ICT access and usage reduce growth inefficiency in Sub-Saharan Africa?," Working Papers hal-04017691, HAL.
    7. Adriana-Maria FEIER-ORZAN (PETRUȚ) & Olimpia NEAGU, 2023. "Digitalisation Of Local Public Services For The Business Environment In Romania. The Particular Case Of The Public Procurement Process," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 99-114, July.
    8. Wei Jiang & Daokang Luo & Liwen W.L. Wang & Kevin Zheng Zhou, 2024. "Foreign ownership and bribery in Chinese listed firms: An institutional perspective," Post-Print hal-04432029, HAL.

    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. Romero-Martínez, Ana M. & García-Muiña, Fernando E., 2021. "Digitalization level, corruptive practices, and location choice in the hotel industry," Journal of Business Research, Elsevier, vol. 136(C), pages 176-185.
    2. 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.
    3. Khan, Anupriya & Krishnan, Satish & Dhir, Amandeep, 2021. "Electronic government and corruption: Systematic literature review, framework, and agenda for future research," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    4. Ferris, Stephen P. & Hanousek, Jan & Tresl, Jiri, 2021. "Corporate profitability and the global persistence of corruption," Journal of Corporate Finance, Elsevier, vol. 66(C).
    5. Kouznetsov, Alex & Kim, Sarah & Wright, Chris, 2019. "An audit of received international business corruption literature for logic, consistency, completeness of coverage," Journal of International Management, Elsevier, vol. 25(4).
    6. Ivlevs Artjoms & Hinks Timothy, 2015. "Bribing Behaviour and Sample Selection: Evidence from Post-Socialist Countries and Western Europe," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(2), pages 139-167, April.
    7. Gans-Morse, Jordan & Borges, Mariana & Makarin, Alexey & Mannah-Blankson, Theresa & Nickow, Andre & Zhang, Dong, 2018. "Reducing bureaucratic corruption: Interdisciplinary perspectives on what works," World Development, Elsevier, vol. 105(C), pages 171-188.
    8. Yan Leung Cheung & P. Raghavendra Rau & Aris Stouraitis, 2012. "How much do firms pay as bribes and what benefits do they get? Evidence from corruption cases worldwide," NBER Working Papers 17981, National Bureau of Economic Research, Inc.
    9. 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.
    10. 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.
    11. Benjamin A. Olken & Rohini Pande, 2012. "Corruption in Developing Countries," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 479-509, July.
    12. Hunt, Jennifer & Laszlo, Sonia, 2012. "Is Bribery Really Regressive? Bribery’s Costs, Benefits, and Mechanisms," World Development, Elsevier, vol. 40(2), pages 355-372.
    13. Dreher, Axel & Kotsogiannis, Christos & McCorriston, Steve, 2007. "Corruption around the world: Evidence from a structural model," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 443-466, September.
    14. Wu, Tao & Delios, Andrew & Chen, Zhaowei & Wang, Xin, 2023. "Rethinking corruption in international business: An empirical review," Journal of World Business, Elsevier, vol. 58(2).
    15. Robert Gillanders & Sinikka Parviainen, 2018. "Corruption and the shadow economy at the regional level," Review of Development Economics, Wiley Blackwell, vol. 22(4), pages 1729-1743, November.
    16. Hanousek, Jan & Shamshur, Anastasiya & Tresl, Jiri, 2019. "Firm efficiency, foreign ownership and CEO gender in corrupt environments," Journal of Corporate Finance, Elsevier, vol. 59(C), pages 344-360.
    17. 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).
    18. Jensen, Nathan M & Rahman, Aminur, 2011. "The silence of corruption : identifying underreporting of business corruption through randomized response techniques," Policy Research Working Paper Series 5696, The World Bank.
    19. Lee, Wang-Sheng & Guven, Cahit, 2013. "Engaging in corruption: The influence of cultural values and contagion effects at the microlevel," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 287-300.

    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:hal:journl:hal-03990427. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.