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Carl Greppin Dissertation.pdf (2.23 MB)

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Why Do People Bribe and is it Worth it? A Mixed Methods Study of Bribing Antecedents and Outcomes in Former Soviet Countries

Greppin, Carl H.
http://rave.ohiolink.edu/etdc/view?acc_num=case1580469109540241

Abstract Details

2020, Doctor of Philosophy, Case Western Reserve University, Management.
Why do people bribe and is it worth it? Given the complex nature of this question, I use in this study both quantitative and qualitative methods. Overall, the thesis comprises three separate but interrelated studies on bribing as a major element of corruption. First, in a Qualitative strand, I interview 30 U.S. executives who work in highly corrupt countries to understand the motivations of individuals for participating in corruption. I found that some executives refuse to participate in such practices, while others choose reluctantly to succumb to extortion, while some willingly participate in corruption. I illustrate costs the executives incur from making the decisions and reasons for why they make the decisions. I find that social norms play a significant role in their decisions including personal norms (individuals’ standards for behaviors and ethical beliefs), subjective norms (expectations of close others), injunctive norms (general societal expectations of behavior), and descriptive norms (what other people actually do). Second, in a Quantitative strand, I analyze World Bank Enterprise Survey data of 2,956 firms in the former Soviet republics where bribing is prevalent to understand firm participation in bribing. Bribing activity is measured by the extent, frequency, and impact of providing additional payments or gifts to get things done. I use structural equation modeling to analyze the data and find that bribing activity has a significant direct positive effect on firm performance when measured by sales growth and employment growth. I conclude that firms undergo risk, effort, and expense to bribe, and they do so rationally in that they see it as a means to increase firm performance. The third study, combining a quantitative+Qualitative strand, seeks to understand differences in corruption participation. To this end I interview local executives in Kyrgyzstan and Georgia and conduct a country level quantitative analysis of the differences in firm performance using the same world bank data. Interview findings complement the findings from the quantitative strand and prior observations from the literature. In particular, my analysis suggests that bribing improves firm performance, supporting a “grease the wheels” hypothesis. I also note significant country differences which suggests that shaping the institutional environment and related expectations can have an impact on the level of bribing activity and its size. Overall, these findings help understand what motivates executives and firms to behave in corrupt ways and participate in bribery. Especially, the findings provide novel insights to the nascent literature on bribing and to antecedents in former Soviet countries. I also make recommendations to policy makers and practitioners on how to reduce bribing as one major form of corruption.
Kalle Lyytinen, PhD (Committee Chair)
Richard Boland, PhD (Committee Member)
Pete Moore, PhD (Committee Member)
Nnaoke Ufere, PhD (Committee Member)
Yunmei Wang, PhD (Committee Member)
188 p.
Business Administration; Ethics; Management
Corruption; bribery; institutional theory; ethical theory; social norm theory; bureaucratic constraints; economic constraints; legal system effectiveness; informal competition; firm performance

Recommended Citations

Citations

  • Greppin, C. H. (2020). Why Do People Bribe and is it Worth it? A Mixed Methods Study of Bribing Antecedents and Outcomes in Former Soviet Countries [Doctoral dissertation, Case Western Reserve University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=case1580469109540241

    APA Style (7th edition)

  • Greppin, Carl. Why Do People Bribe and is it Worth it? A Mixed Methods Study of Bribing Antecedents and Outcomes in Former Soviet Countries. 2020. Case Western Reserve University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=case1580469109540241.

    MLA Style (8th edition)

  • Greppin, Carl. "Why Do People Bribe and is it Worth it? A Mixed Methods Study of Bribing Antecedents and Outcomes in Former Soviet Countries." Doctoral dissertation, Case Western Reserve University, 2020. http://rave.ohiolink.edu/etdc/view?acc_num=case1580469109540241

    Chicago Manual of Style (17th edition)

case1580469109540241
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This open access ETD is published by Case Western Reserve University School of Graduate Studies and OhioLINK.