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Corruption, South African multinational enterprises and institutions in Africa

journal contribution
posted on 2023-06-09, 06:32 authored by John Da Silva LuizJohn Da Silva Luiz, Callum Stewart
We examine the responses of South African multinational enterprises (MNEs) to corruption in African markets in the context of institutional voids. Corruption is a source of uncertainty and additional transactional costs for MNEs and it necessitates a strategic response. The research employs a qualitative study of a sample of MNEs with experience in internationalising into Africa. The results indicate that corruption in African markets is pervasive and closely associated with the institutional voids in these countries. MNEs see themselves as ‘institution takers’ responding to countries’ institutional makeup at the organisational and individual level but fail to fully appreciate their impact on institutions both positively and negatively. Rather MNEs focus on strategic responses at the organisational level to address corruption operationally in the host country. We add to the existing literature by providing a dynamic framework of the complex webs of association between institutions, MNEs and corruption in conditions of economic underdevelopment. The research suggests that MNEs do not need to get caught in a vicious cycle whereby they perpetuate corruption in conditions of underdevelopment and institutional voids but instead can contribute towards a virtuous cycle through which they institutionalise ethical foundations.

History

Publication status

  • Published

File Version

  • Published version

Journal

Journal of Business Ethics

ISSN

0167-4544

Publisher

Springer Verlag

Issue

3

Volume

124

Page range

383-398

Department affiliated with

  • Business and Management Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2017-06-06

First Compliant Deposit (FCD) Date

2021-03-05

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