Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
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The Impact of Corruption on MNE's Sequential Investment

부패 압력이 다국적기업의 후속 투자에 미치는 영향: 베트남 시장을 중심으로

  • 강지훈 (연세대학교 경영연구소)
  • Received : 2020.02.28
  • Accepted : 2020.03.25
  • Published : 2020.03.30
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Abstract

Purpose - The purpose of this study is to examines the effect of corruption pressure in host country on sequential investment. The study further investigates how the information acquisition capacity of MNEs and the political tie in the host country had a moderating effect on the relationship between corruption and sequential investment. Design/methodology/approach - Ordered logistic regression is hired to analyze 1,260 MNEs' sequential investment in Vietnam. Findings - The empirical results of this study demonstrate the more MNEs perceive the strong level of pressure to be corrupt in the local market, the less they are likely to invest. The information acquisition capacity of MNEs has been shown to mitigate the negative effects of corruption pressures on sequential investments, while the moderating effect of political tie in host country is partially supported. Research implications or Originality - This study identified that the corruption pressures of host countries negatively affect not only MNEs that are entering, but also the ones that have already entered host countries; the corruption discourages any sequential investment for existing MNEs. By suggesting two moderating variables, this study will provide managerial implications for MNEs and managers who face corruption pressure in host countries.

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