Corruption as a perverse Innovation: The dark side of digitalization and corruption in international business

Digitalization has had pervasive effects on corruption, introducing new opportunities and challenges to minimize the use of corruptive behaviours. This study investigates the dark side effects of digitalization, documenting its facilitation of corruption across countries as a form of perverse innova...

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Bibliographic Details
Published in:Journal of business research 2022-06, Vol.145, p.682-693
Main Authors: Malik, Ashish, Froese, Fabian Jintae
Format: Article
Language:English
Subjects:
Corruption
Digitalization
International business
Moral intensity
Perverse innovation
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Summary:Digitalization has had pervasive effects on corruption, introducing new opportunities and challenges to minimize the use of corruptive behaviours. This study investigates the dark side effects of digitalization, documenting its facilitation of corruption across countries as a form of perverse innovation. Building upon the theory of moral intensity and the extant literature on innovation, modularity, and complexity and considering the international business context, we develop a multilevel conceptual model with testable future research propositions. The core of our model is that each act has a component of moral intensity that determines the likelihood of individual MNE agents engaging in corrupt business behaviour. Furthermore, the complexity and modularity of products and services, coupled with a highly complicated international business environment, can facilitate the ease with which individual actors can engage in corrupt business practices. Finally, we provide recommendations for both theory and practice.
ISSN:0148-2963
1873-7978
DOI:10.1016/j.jbusres.2022.03.032