Institutions, resource dependence, and the dual nature of corruption in firm internationalisation

Belitski, M., Kalyuzhnova, Y. ORCID: https://orcid.org/0000-0002-5781-8837, Kamasak, R. ORCID: https://orcid.org/0000-0001-8768-3569 and Laker, B. ORCID: https://orcid.org/0000-0003-0850-9744 (2025) Institutions, resource dependence, and the dual nature of corruption in firm internationalisation. Human Relations. ISSN 1741-282X doi: 10.1177/00187267251355390

Abstract/Summary

Despite extensive research on institutions and firm internationalisation, the joint firm and macro-level effects of informal relationships, i.e. corruption, on firm internationalisation, particularly within specific industrial contexts (resource-based versus non-resource industries), remain underexplored. To investigate how firms internationalise under two boundary conditions—resource dependency and variations in institutional quality — we apply the Heckman-type selection bias and use 186,027 firms spread across 137 countries, with data collected through multiple firm surveys conducted by the World Bank Enterprise Survey (WBES) between 2006 and 2024. Our empirical findings demonstrate the double-edged sword of corruption. While it positively affects firm exports by mitigating bureaucratic procedures at the managerial level, the effect on exports turns negative as it increases uncertainty and operational costs at the macro level. The effects are accelerated for firms in resource-based sectors. We highlight the interplay between corruption, resource dependencies, and internationalisation and provide targeted policy and practical implications.

Item Type	Article
URI	https://centaur.reading.ac.uk/id/eprint/123392
Identification Number/DOI	10.1177/00187267251355390
Refereed	Yes
Divisions	Henley Business School > Leadership, Organisations, Behaviour and Reputation
Uncontrolled Keywords	Corruption, internationalisation, institutions, resources, exports
Publisher	SAGE Publications
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