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Academy of Management Review Vol. 30 No. 2 2005

Government Corruption and the Entry Strategies of Multinationals

Peter Rodriguez1; Klaus Uhlenbruck2; Lorraine Eden3

1 University of Virginia · 2 University of Montana · 3 Texas A&M University

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.

DOI
10.5465/amr.2005.16387894
Volume
30
Issue
2
Pages
383-396
Language
en
Sources
ris:amr.ris openalex crossref

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