Abstract
Adopting a resource dependence viewpoint, this study investigates how the arbitrariness of corruption in a host country affects subsidiary performance. Analysis of bank foreign affiliates in 37 host countries shows that the negative effect of arbitrariness on affiliate performance is positively moderated by the strength of the sub-unit's corporate link, and the average number of expatriate managers appointed at the sub-unit. This study extends the literature on corruption by exploring a subtle but damaging dimension for foreign entrants and provides cues to managers for the proactive measures to take when they are likely to experience the arbitrariness of corruption.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
