Abstract
This article investigates whether bribery in emerging economies matters and whether such bribery has a diminishing return to performance. Bribery allows entrepreneurs to develop and foster a network of informal relationships with public officials, and reap the accompanying benefits; but it may also have disadvantages, such as an inefficient allocation of resources. The relationship between bribery and performance was estimated using unique data derived from a survey of 606 Vietnamese entrepreneurs. We controlled for various entrepreneurial, organizational, and industrial characteristics. The exploratory results provide support for a hill-shaped non-monotonic relationship between bribery and revenues.
Original language | English |
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Pages (from-to) | 323-345 |
Number of pages | 23 |
Journal | Entrepeneurship Theory and Practice |
Volume | 36 |
Issue number | 2 |
DOIs | |
Publication status | Published - Mar-2012 |
Keywords
- FIRM PERFORMANCE
- TRANSITION ECONOMIES
- EMERGING ECONOMIES
- SOCIAL-STRUCTURE
- CORRUPTION
- GROWTH
- COMPETITION
- NETWORKS
- TRUST
- EMBEDDEDNESS