Government corruption and the entry strategies of multinationals

Peter Rodriguez, Klaus Uhlenbruck, Lorraine Eden

Research output: Contribution to journalArticlepeer-review

Abstract

Multinational enterprises (MNEs) often encounter government corruption when operating in host countries; however, in the international management literature, it is typically assumed that government officials pursue national interests rather than their own. We introduce a two-dimensional framework to further the understanding of public sector corruption and identify its implications for MNEs. Using an institutional perspective, we examine how the pervasiveness and arbitrariness of corruption can affect an MNE's organizational legitimacy and strategic decision making. We apply our analysis to the mode of entry decision.

Original languageEnglish
Pages (from-to)383-396
Number of pages14
JournalAcademy of Management Review
Volume30
Issue number2
DOIs
StatePublished - Apr 2005

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