Williams, C.C. orcid.org/0000-0002-3610-1933, Martinez-Perez, A. orcid.org/0000-0002-8831-6346 and Kedir, A.M. (2016) Does bribery have a negative impact on firm performance? a firm-level analysis across 132 developing countries. International Journal of Entrepreneurial Behavior & Research, 22 (3). pp. 398-415. ISSN 1355-2554
Abstract
Purpose – Reflecting the moral theorisation of bribery as a negative phenomenon, bribery has been widely shown to have a deleterious impact at the national level on economic development and growth. The purpose of this paper is to evaluate whether it is also the case at the firm level that bribery has negative impacts on firm performance. Until now, the few studies conducted in individual nations and regions have produced mixed results. Here, therefore, a more comprehensive evaluation of the relationship between bribery and firm performance is undertaken across the developing world. Design/methodology/approach – To do so, World Bank Enterprise Survey data on 106,805 enterprises across 132 developing countries is used to provide a firm-level analysis of the relationship between bribery and firm performance. Findings – The finding is that bribery enhances firm performance. Firms asserting that it is necessary for enterprises like theirs to give gifts or payments to public officials in order to get things done have 13.9 per cent higher average annual sales growth rates and 48 per cent higher annual productivity growth rates, after controlling for other determinants of firm performance. Practical implications – Given that engaging in bribery at the firm level results in higher firm performance, despite bribery having an overall detrimental negative impact at the country level, public authorities will need to develop measures to alter not only the cost-benefit ratio confronting individual enterprises but also the institutional deficiencies that result in the prevalence of bribery. Originality/value – This is the first firm-level evaluation of the relationship between bribery and firm performance across the developing world.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2016 Emerald Group Publishing Limited This is an author produced version of a paper subsequently published in International Journal of Entrepreneurial Behaviour and Research. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Entrepreneurs; Corruption; Multivariate analysis; Developing countries; Firm performance; Bribery |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Sociological Studies (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 31 Mar 2016 15:22 |
Last Modified: | 11 Oct 2017 23:09 |
Published Version: | http://dx.doi.org/10.1108/IJEBR-01-2016-0002 |
Status: | Published |
Publisher: | Emerald |
Refereed: | Yes |
Identification Number: | 10.1108/IJEBR-01-2016-0002 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:97442 |