Cronyism: A Cross-Cultural Analysis

The devastating economic effects of the Asian financial crisis and US corporate scandals have underscored the need to strengthen corporate governance provisions. Although cronyism has been suggested as a leading cause of the two crises, it has received little attention from scholars. In this paper,...

Full description

Saved in:
Bibliographic Details
Published in:Journal of international business studies 2006-01, Vol.37 (1), p.61-75
Main Authors: Khatri, Naresh, Eric W. K. Tsang, Begley, Thomas M.
Format: Article
Language:English
Subjects:
Business management
Business structures
Business studies
Capitalism
Chinese culture
Collectivism
Corporate governance
Corruption
Cronyism
Cross cultural studies
Cross-national analysis
Economic networks
Executive compensation
Favoritism
Friendship
Individualism
Joint ventures
Macroeconomics
Multinational corporations
Nepotism
Social exchange theory
Social interaction
Social networks
Social psychology
Social structure
Studies
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The devastating economic effects of the Asian financial crisis and US corporate scandals have underscored the need to strengthen corporate governance provisions. Although cronyism has been suggested as a leading cause of the two crises, it has received little attention from scholars. In this paper, we analyze the concept of cronyism and argue that it comes in various guises arising from different motivational bases and power dependence relations. We distinguish cronyism from related constructs and posit that it is a form of corruption with different dynamics from other forms. We advance propositions on its likelihood of occurrence across cultures and develop a typology of cronyist exchanges.
ISSN:0047-2506
1478-6990
DOI:10.1057/palgrave.jibs.8400171