Generalised trust and relation centrism for corruption as perceived by firms

Olarewaju, Tolu, Tamvada, Jagannadha Pawan and McDowall-Emefiele, Sharin (2022) Generalised trust and relation centrism for corruption as perceived by firms. Academy of Management Proceedings, 2022 (1), 15897.

Record type: Article

Abstract

We investigate the role of generalised trust and relation centrism for corruption as perceived by 16,785 firms in 20 lower- and middle- income countries. The empirical results demonstrate that typically, higher levels of relation centrism and generalised trust are linked with corruption as perceived by firms. The results however show significant regional disparities suggesting that firms will need to be aware of these differences, as they are likely to determine their optimal strategic choices when entering or expanding their operations into new territories. For instance, in regions where increased friend centrism is associated with reduced corruption, firms can use weak ties more tactically but will need to be more careful with such weak ties in regions where increased friend centrism is associated with increased corruption.

Text

21-01 - Accepted Manuscript

Available under License Creative Commons Attribution Non-commercial No Derivatives.

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