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Article
Publication date: 29 April 2021

Xiaojing Liu, Tiru Arthanari and Yangyan Shi

This paper examines the establishment of supply chain robustness against corruption by utilizing risk interactions.

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Abstract

Purpose

This paper examines the establishment of supply chain robustness against corruption by utilizing risk interactions.

Design/methodology/approach

Based on empirical results from the New Zealand dairy industry, a system dynamics model is established to explore the underlying relationships among variables.

Findings

The results show that although certain supply chain risks seem unrelated to corruption, their mitigation would help mitigate the impact of corruption due to risk interactions; and mitigation of some of the risks is more effective in mitigating the impact of corruption. Leverage risks have been defined and identified in this research, which expands the extant knowledge in reducing the impact of corruption on supply chains.

Originality/value

The research illustrates how the impact of corruption can be studied in an integrated way with dairy supply chain SD analysis. It is a pioneering study to mitigate the impact of corruption on supply chains from supply chain robustness.

Details

Industrial Management & Data Systems, vol. 121 no. 7
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 10 September 2020

Bruno S. Silvestre, Fernando Luiz E. Viana and Marcelo de Sousa Monteiro

A growing number of private, voluntary and mandatory sustainability standards have recently emerged. However, supply chain corruption practices as mechanisms to circumvent…

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Abstract

Purpose

A growing number of private, voluntary and mandatory sustainability standards have recently emerged. However, supply chain corruption practices as mechanisms to circumvent sustainability standards have also grown and occur regularly. This paper strives to elaborate theory on the intersection of institutional theory, business corruption and the sustainability standards literature by investigating factors that influence the emergence of supply chain corruption practices.

Design/methodology/approach

Based on secondary data, four in-depth case studies of supply chain corruption practices are investigated through the use of adaptive theory and the method of constant comparisons to elaborate theory on this important phenomenon.

Findings

The paper suggests that although sustainability standards can improve supply chain sustainability performance, if they are adopted only symbolically and not substantively, unanticipated outcomes such as supply chain corruption may occur. The study proposes a typology of supply chain corruption practices, further explores the symbolic adoption of sustainability standards in supply chains and proposes the novel construct of “social isomorphism for corruption.” Since focal companies play central roles in leading supply chain corruption practices, we reason that they can also play a pivotal role in preventing supply chain corruption practices by promoting the substantive adoption of sustainability standards across their supply chains.

Originality/value

This paper elaborates theory on the challenging phenomenon of corruption in supply chains by linking the supply chain management literature to the corruption and the sustainability discourses and offers important insights to aid our understanding on the topic. It generates six propositions and four contributions to the sustainable supply chain management theory, practice and policy.

Details

International Journal of Operations & Production Management, vol. 40 no. 12
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 12 June 2023

Geng Wang, Yangchun Xiong, Yang Cheng and Hugo K.S. Lam

This study aims to explore the spillover effects of supply chain corruption practices (SCCPs) on stock returns along the supply chain and within the industry. Specifically, it…

Abstract

Purpose

This study aims to explore the spillover effects of supply chain corruption practices (SCCPs) on stock returns along the supply chain and within the industry. Specifically, it investigates how SCCPs affect the stock returns of corrupt firms' bystander supply chain partners and industry peers, both of which are not involved in the SCCPs.

Design/methodology/approach

The authors employ the event study methodology to quantify SCCPs' spillover effects in terms of abnormal stock returns. The analysis is based on 117 SCCPs occurring in China between 2014 and 2021.

Findings

The event study results show that SCCPs have negative effects on the stock returns of corrupt firms' bystander supply chain partners. Such negative effects are more pronounced for bystander buyers than bystander suppliers. However, SCCPs do not have a significant impact on the stock returns of corrupt firms' industry peers. Additional analysis further suggests that SCCPs are more likely to affect the stock returns of domestic rather than overseas bystander supply chain partners.

Originality/value

This study is the first attempt to thoroughly examine the spillover effects of SCCPs along the supply chain and within the industry, advancing the understanding of the financial consequences of SCCPs and providing important implications for future research and practices related to supply chain corruption.

Details

International Journal of Operations & Production Management, vol. 44 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 25 October 2019

Myriam Ertz, Fahri Karakas, Frederick Stapenhurst, Rasheed Draman, Emine Sarigöllü and Myung-Soo Jo

This study aims to offer a better understanding of supply side of bribery and corruption in an international business perspective by conceptualizing it in the narrower concept of

Abstract

Purpose

This study aims to offer a better understanding of supply side of bribery and corruption in an international business perspective by conceptualizing it in the narrower concept of misconduct in business (MIB) derived from the deontological perspective to business ethics.

Design/methodology/approach

The authors use a case study methodology of professionals working within Canadian mining multinational corporations operating in Africa. The authors conducted 2 focus groups, 25 in-depth interviews, document search and an open-ended questionnaire to 15 professionals. Further, they drew on a combination of the classic relationalist sociological framework and its recent revision, that they named the relationalism-substantialism framework to analyze the data.

Findings

The triangulated empirical data show that the reason why MIB in the form of bribery supply occurs is not exclusively tied to any given perspective, whether the individual, the organization or the wider societal context. Rather, these different layers are tightly intertwined and interact with each other for the supply of bribery to occur.

Originality/value

Although the three siloed perspectives of MIB have been studied in the literature, they have not been addressed in relation to one another, and even less with a relationalism-substantialism framework. Yet, this perspective contributes compellingly to the understanding of the supply side in bribery. The authors propose a net of conceptually related constructs that intervene in the process of bribery supply occurrence, namely relationality influenced by institutional dysfunctionality and conflation and substantiality through agency and culture.

Details

critical perspectives on international business, vol. 16 no. 3
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 7 September 2021

Nurfarizan Mazhani Mahmud, Intan Salwani Mohamed and Roshayani Arshad

This paper aims to provide a proper understanding of corruption in the private sector, also known as the supply-side of corruption. It also presents the causes of corrupt…

Abstract

Purpose

This paper aims to provide a proper understanding of corruption in the private sector, also known as the supply-side of corruption. It also presents the causes of corrupt practices and points out the corporations’ actions to mitigate corrupt behaviour in the business environment.

Design/methodology/approach

This study reviews the prior literature on the phenomenon of corruption in the private sector, its causes and the preventive measures that should be implemented.

Findings

Corruption in the private sector was associated with a firm’s interaction with the public sector, and the most common corruption in the private sector is grand corruption, which is improper contribution made to high-level public officials and politicians. The causes of corruption in the private sector can be explained from several dimensions: economy, psychosocial and legal and regulation. Preventative measures encompass both internal strategies, which are endogenous to business and external strategies like exogenous legislation and restrictions enforced by the government or outside organizations.

Originality/value

The efficient strategies in combating corruption need active cooperation and participation from the supply-side of corruption. Thus, this study contributes to the literature on the theoretical understanding of the corruption problem from the supply-side and responsibility play by the private sector in global anti-corruption initiatives.

Details

Journal of Financial Crime, vol. 29 no. 1
Type: Research Article
ISSN: 1359-0790

Keywords

Open Access
Article
Publication date: 4 August 2021

Matthew Davis, Thomas Taro Lennerfors and Daniel Tolstoy

The purpose of the study is to explore, with anchorage in theories about the normalization of corruption, under what conditions blockchain technology can mitigate corruptive…

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Abstract

Purpose

The purpose of the study is to explore, with anchorage in theories about the normalization of corruption, under what conditions blockchain technology can mitigate corruptive practices of multinational enterprises (MNEs) in emerging markets (EMs).

Design/methodology/approach

By synthesizing a technological perspective and theory on corruption, the authors examine the feasibility of blockchain for fighting corruption in MNEs’ business operations in EMs.

Findings

Blockchain technology is theorized to have varying mitigating effects on the rationalization, socialization and institutionalization of corruption. The authors provide propositions describing the effects and the limitations of blockchain for mitigating corruption in EMs.

Social implications

This paper offers a perspective for how to tackle acute business problems and social problems pronounced in international business but also prevailing elsewhere.

Originality/value

The study contributes to literature in international management by systematically exploring how and under what conditions blockchain can mitigate the normalization of corruption.

Details

Review of International Business and Strategy, vol. 32 no. 1
Type: Research Article
ISSN: 2059-6014

Keywords

Book part
Publication date: 29 August 2017

Eleanor R. E. O’Higgins

This chapter discusses the special case of extractive industries in relation to susceptibility to corruption, especially in states with weak institutional and governance…

Abstract

This chapter discusses the special case of extractive industries in relation to susceptibility to corruption, especially in states with weak institutional and governance structures. The systemic nature of this corruption is shown in a vicious cycle of extractive resource dependency and corruption which reinforce each other. The chapter then concentrates on the supply side of corruption, and the role of the private sector with domestic and foreign natural resources companies feeding into systemic corruption. Corruption is underpinned by a high demand, high prices for extractive resources scenario, and mitigated by a low demand, low prices scenario. Transparency oriented, anticorruption measures may not be effective in their own right, but a low demand, low prices scenario could provide an opening for such measures to take root, with accompanying benefits to the citizens of resource rich states and their environment. This suggests taking a contingency approach to dealing with corruption.

Article
Publication date: 21 June 2021

Olatunde Julius Otusanya and Gbadegesin Babatunde Adeyeye

This paper aims to assess the role of secrecy jurisdictions in providing supply-side stimulants for illicit financial flows from developing countries and how the tax havens…

1198

Abstract

Purpose

This paper aims to assess the role of secrecy jurisdictions in providing supply-side stimulants for illicit financial flows from developing countries and how the tax havens structures shape the role of actors. Specifically focussing on decades of trade liberalisation and markets, and of increasingly rapid movement of people, capital and information across regions and around the globe, the paper draws on the political economy theory of globalisation to illuminate the connections between capital flight, money laundering and global offshore financial centres (OFCs).

Design/methodology/approach

The paper uses publicly available evidence to shed light on the role played by tax havens in facilitating money laundering, capital flight and corruption. The issues are illustrated with the aid of case studies.

Findings

The evidence shows that, in pursuit of organisational and personal interest, the tax havens create enabling structures that support illicit activities of the political and economic elites from developing countries. The paper further argues that the supply-side of corruption severely limits the possibilities of preventing corruption in developing countries.

Research limitations/implications

The paper uses publicly available evidence to illuminate the role played by OFCs in facilitating elite corruption and money laundering practices.

Practical implications

It is impossible to quantify the volume of money laundered, but it has been estimated that money laundering may account for as much as 5% of the world economy.

Social implications

The paper, therefore, suggests that unless this supply-side of corruption is tackled there is little prospect for an end to aid dependency and the creation of economically stable and democratic states in developing countries.

Originality/value

The paper examines predatory practices of the international financial industry in tax havens and OFCs in facilitating money laundering, corruption and capital flight and the challenges posed for the economic development of developing countries.

Details

Journal of Financial Crime, vol. 29 no. 1
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 21 October 2021

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

204

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

This viewpoint paper concentrates on unpacking the causes of and solutions to private sector, business-to-business corruption. This type of corruption is caused by any combination of economic goals and pressures, a psychology of cultural acceptance, and ineffective legislative consequences. In particular, the authors advocate internal company-wide anti-corruption measures, which can self-regulate through robust corporate governance and reporting, through company leaders taking an ethical anti-corruption stance to lead by example, and through signing up to voluntary codes of practice that their employees get trained in.

Originality/value

The briefing saves busy executives and researchers’ hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Details

Strategic Direction, vol. 37 no. 11
Type: Research Article
ISSN: 0258-0543

Keywords

Book part
Publication date: 8 November 2004

Masako N. Darrough

Corruption is a phenomenon that is ubiquitous, but the extent and the form differ across countries. According to Transparency International, the Corruption Perception Index (CPI…

Abstract

Corruption is a phenomenon that is ubiquitous, but the extent and the form differ across countries. According to Transparency International, the Corruption Perception Index (CPI) in year 2001 varied from 0.4 to 9.9 (10 is completely corruption free). The average score for the 91 countries surveyed was 4.76 (with a standard deviation of 2.39). Why is there so much cross-country difference? Why are some countries virtually corruption free, but are others fraught with corruption?

Details

Strategies for Public Management Reform
Type: Book
ISBN: 978-1-84950-218-4

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