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Corruption and the multi-national corporation : antecedents to bribery in a foreign country

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Corruption and the multi-national corporation : antecedents to bribery in a foreign country

AlHussaini, Wissam (2010) Corruption and the multi-national corporation : antecedents to bribery in a foreign country. Masters thesis, Concordia University.

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Abstract

This research aims at determining the host country-specific antecedents which prompt MNCs to break the hyper-norm of anti-corruption and pay bribes abroad. Using anomie theory conjectures, antecedents are divided into opportunities and conditions. Data on more than 1000 MNCs operating in 26 countries was obtained from the World Bank's Business Environment and Enterprise Performance Survey (BEEPS). A Multilevel model was constructed and hierarchical linear modeling (HLM) was used to determine the effect of country-level and firm-level antecedents on the MNC bribery activity. The results show that opportunities including achievement of competitive advantage, host countries' transition periods, and natural resource abundance have positive significant effects on MNCs' propensity to pay bribes. Additionally, host country conditions, such as the law's rigidity and legal system incompetence, also have a significant positive impact on an MNC's propensity to pay bribes. This study advances the literature on corruption in several directions. First, it studies the phenomenon from supply side (i.e. the bribe-payer). Second, it adopts the use of anomie theory which is still a novel approach for studying corruption. Third, it uses the MNC as the unit of analysis rather than country or local firms. Finally, it goes beyond recent studies by focusing on the host country's rather than home country's effect on a firm's bribery activity.

Divisions:Concordia University > John Molson School of Business
Item Type:Thesis (Masters)
Authors:AlHussaini, Wissam
Pagination:viii, 147 leaves : ill. ; 29 cm.
Institution:Concordia University
Degree Name:M. Sc.
Program:John Molson School of Business
Date:2010
Thesis Supervisor(s):Molz, Rick
ID Code:979347
Deposited By: Concordia University Library
Deposited On:09 Dec 2014 17:57
Last Modified:18 Jan 2018 17:49
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