This Article Full Text (OnlineFirst PDF) Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Add to Saved Citations Download to citation manager Request Permissions Request Reprints Add to My Marked Citations Citing Articles Citing Articles via Google Scholar Google Scholar Articles by Luo, Y. Search for Related Content Social Bookmarking                   What's this?

Strategic Responses to Perceived Corruption in an Emerging Market: Lessons from MNEs Investing in China

University of Miami

^* To whom correspondence should be addressed. E-mail: yadong{at}miami.edu.

	Abstract

Success in foreign emerging markets is increasingly critical to the global market leadership for many multinational enterprises (MNEs). However, corruption in emerging markets is pervasive and rampant. This study addresses how MNE subunits strategically respond to perceived corruption in the business segment of a foreign emerging market wherein they invest and operate. My analysis suggests that an MNE subunit’s investment commitment decreases, and its export market orientation increases, with perceived escalated corruption in the specific business segment. Though perceived corruption in an industrial setting (sectorial corruption) has a stronger effect on the subunit’s market orientation, changes in perceived corruption over time (longitudinal corruption) exert a greater influence on investment commitment. To individual subunits, the strength of these strategic responses to corruption is heightened by their ethical awareness but weakened by their indigenous dependence.

CiteULike    Connotea    Del.icio.us    Digg    Reddit    Technorati    What's this?