Entry mode choices of multinational companies (MNCs) and host countries’ corruption: A review

• Tipo: Artigo em Revista Científica Internacional
• Data: 2012

Autores

Aurora Teixeira (Autor) FEP

Revista

Título: African Journal of Business Management

Vol. 6 Nº 27

ISSN: 1993-8233

Editora: Academic Journals Inc.

Outras Informações

ID Authenticus: P-00J-6Q8

DOI: 10.5897/ajbm11.3011

Abstract (EN): Despite voluminous literature on corruption and the entry mode choices of multinational companies (MNCs) in isolation, a comprehensive account which details the mechanisms through which host country corruption impacts on MNCs¿ entry modes is lacking. To overcome such a gap, we systematically review and provide an up-to-date overview of the empirical literature on corruption and the entry mode choices of MNCs. The review demonstrates that, in general, when in presence of markets with high levels of corruption, MNCs prefer low equity (that is, joint-ventures with local partners) or non-equity (namely exports and contracting) entry mode choices. Nevertheless, it also reveals that, in some specific cases, such as cultural proximity, even when there is pervasive corruption, MNCs may enter via wholly-owned subsidiaries. Such conclusions uncovered an interesting path for future research by exploring a rather neglected context, where the entry mode choices of MNCs are made from developed countries in Africa possessing historical and cultural ties.

Idioma: Inglês

Tipo (Avaliação Docente): Científica