Corporate Anti-corruption Policy, Investment Motives, and Foreign Location Choice
The Multiple Dimensions of Institutional Complexity in International Business Research
ISBN: 978-1-80043-245-1, eISBN: 978-1-80043-244-4
Publication date: 4 March 2021
Abstract
This study examines the contingent impact of corporate anti-corruption policies on multinational enterprises’ foreign investment strategy. The authors propose that the differences in foreign investment motives will moderate the assumed deterrent effect of anti-corruption policies. Our analysis of overseas production investments by Japanese firms (2011–2017) supports some of the hypotheses. The authors find that the deterrent effect of anti-corruption policies may be diminished when a new subsidiary has an efficiency-seeking purpose. Conversely, the deterrent effect is more prominent when a new subsidiary has a competence-creating purpose. These results not only contribute to the research on control of corruption in international business, but also have implications for research on corporate self-regulation more generally.
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Acknowledgements
Acknowledgments
Guoliang Frank Jiang’s work on this chapter was supported in part by an Insight Grant (435-2018-1537) provided by the Social Sciences and Humanities Research Council of Canada (SSHRC). Michael A. Sartor’s work on this chapter was supported in part by an SSHRC Insight Development Grant (430-2018-00535) and an SSHRC Institutional (Explore) Grant.
Citation
Jiang, G.F. and Sartor, M.A. (2021), "Corporate Anti-corruption Policy, Investment Motives, and Foreign Location Choice", Verbeke, A., van Tulder, R., Rose, E.L. and Wei, Y. (Ed.) The Multiple Dimensions of Institutional Complexity in International Business Research (Progress in International Business Research, Vol. 15), Emerald Publishing Limited, Leeds, pp. 173-191. https://doi.org/10.1108/S1745-886220210000015011
Publisher
:Emerald Publishing Limited
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