Corruption’s impact on organizational outcomes

Abstract

Purpose

This study aims to develop a model of corruption that measures the impact of sports corruption on organizational outcomes (i.e. win difference and attendance) and the mediating role of institutional reputation. How the form and extent of the corruption impacted these organizational outcomes was also examined.

Design/methodology/approach

Archival data were collected and then structural equation modeling (i.e. path analysis) was used to analyze the model and estimate the parameters.

Findings

The model was a good fit. The extent of the violation served as an antecedent to sanctions and institutional reputation mediated the relationship between the extent of the violation and organizational outcomes. A weak but negative correlation between sanctions and institutional reputation was also found.

Practical implications

Rather than seeking to prevent specific forms of corruption carried out by individuals, managers should consider developing and implementing reform interventions that concentrate on eliminating corrupt networks (e.g. a group of interrelated individuals that abuse their power for private or public gain) who facilitate systematic malfeasance acts.

Originality/value

The study is the first to operationalize the extent and form of corrupt acts and measure their impact on organizational outcomes. The results demonstrate how different variables interact to determine the effects on organizational outcomes.

Citation

Kihl, L.A., Ndiaye, M. and Fink, J. (2018), "Corruption’s impact on organizational outcomes", Social Responsibility Journal, Vol. 14 No. 1, pp. 40-60. https://doi.org/10.1108/SRJ-12-2016-0217