Abstract
We contribute to an improved understanding of the effects of informal institutions on local firms' acquisition behavior in an emerging economy context. We compare the different regions of the Russian Federation and propose that the continuity and autonomy of the regional leadership and interaction between businesses and local decision-makers through corrupt practices contribute to the emergence of an informal institutional context that is supportive of acquisitive growth. Results from an analysis of the behavior of 2,981 firms in 40 different regions of Russia during 2001-2008 support our predictions. We extend the existing research on institutional determinants of behavior and the importance of informal institutions for stability and predictability when businesses have to cope with formal institutional voids.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: 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.