Academy of Management Review · 2005 · 716 citations · 71 references
ManagementInternational BusinessInternational ManagementForeign Direct InvestmentInstitutional TheoryInternational OrganizationsAnti-corruption GovernanceInternational Organization TheoryLegitimacy ManagementOrganizational LegitimacyCorruption In Public ServiceEntryGlobal Strategic Decision-makingPublic Official CorruptionPublic Sector Corruption Controls
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.
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Managing Legitimacy: Strategic and Institutional Approaches
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