Corruption, Modes of Entry and Performance of Subsidiaries of Multinational Companies from Emerging Countries
DOI:
https://doi.org/10.4013/base.2021.181.04Keywords:
Corruption, Entry Modes, Performance, Multinational companies, Emerging countries, SubsidiariesAbstract
Corruption, defined as the abuse of public power for private gain, has been the subject of theoretical and empirical studies in recent International Business literature. In order to contribute empirically to this topic, the purpose of this paper is to analyze the effects of corruption on the choice of international entry mode and on the performance of emerging MNE subsidiaries operating in other emerging economies. Based on a quantitative approach, and using the panel data regression technique for a sample of 657 Multinational Subsidiaries, we found evidence on the negative impacts of corruption on the performance of emerging country subsidiaries operating in other emerging countries. In addition, the study points to the moderating effect of the joint venture entry mode on the relationship between corruption and performance.
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