Journal of International Business Studies

, Volume 38, Issue 2, pp 320–332 | Cite as

Corruption and the role of information

  • Cassandra E DiRienzoEmail author
  • Jayoti Das
  • Kathryn T Cort
  • John BurbridgeJr


Several studies have explored how certain economic and cultural variables affect a country's corruption level. This study extends previous research by not only considering these variables, but also taking into account the impact that information and communication technology can have on corruption. The results indicate that the greater the access to information, the lower the corruption levels. Therefore bridging the digital disparity across countries can also serve to lessen national corruption levels.


corruption information and communication technology culture cluster analysis 



The authors wish to thank the three anonymous JIBS reviewers and the Departmental Editor, Professor José Manuel Campa, for their helpful comments and suggestions on previous drafts of this manuscript.


  1. Ades, A. and Di Tella, R. (1997) ‘The causes and consequences of corruption: a review of recent empirical contributions’, Institute of Development Studies Bulletin 27(2): 6–12.CrossRefGoogle Scholar
  2. Ades, A. and Di Tella, R. (1999) ‘Rents, competition and corruption’, American Economic Review 89(4): 982–993.CrossRefGoogle Scholar
  3. Adler, N. (2002) International Dimensions of Organizational Behavior, South Western: New York.Google Scholar
  4. Alam, M.S. (1995) ‘A theory of limits on corruption and some applications’, Kyklos 48(3): 419–435.CrossRefGoogle Scholar
  5. Ali, A.M. (2003) ‘Institutional differences as sources of growth differences’, Atlantic Economic Journal 3(4): 348–362.CrossRefGoogle Scholar
  6. Ali, A.M. and Said, I.H. (2003) ‘Determinants of economic corruption’, Cato Journal 22(3): 449–466.Google Scholar
  7. Bardhan, P. (1997) ‘Corruption and development: a review of the issues’, Journal of Economic Literature 35(3): 1320–1346.Google Scholar
  8. Besley, T. and McLaren, J. (1993) ‘Taxes and bribery: the role of wage incentives’, Economic Journal 103(416): 119–141.CrossRefGoogle Scholar
  9. Bhatnagar, S. (2000) ‘Social implications of information and communication in developing countries: lessons from Asian success stories’, The Electronic Journal of Information Systems in Developing Countries 1(4): 1–10, (accessed 16 May 2006).Google Scholar
  10. Burns, A. and Bush, R. (2003) Marketing Research: Online Research Applications, Prentice Hall: Upper Saddle River, NJ.Google Scholar
  11. Cohen, J.R., Pant, W.L. and Sharp, D.J. (1996) ‘A methodological note on cross-cultural accounting ethics research’, International Journal of Accounting 31(1): 55–66.CrossRefGoogle Scholar
  12. Davis, D.G. (1977) ‘Property rights and economic efficiency: the Australian airlines revisited’, Journal of Law and Economics 20(1): 223–226.CrossRefGoogle Scholar
  13. Davis, J.H. and Ruhe, J.A. (2003) ‘Perceptions of country corruption: antecedents and outcomes’, Journal of Business Ethics 43(4): 275–288.CrossRefGoogle Scholar
  14. Gastanga, V.M., Nugent, J.B. and Pashamova, B. (1998) ‘Host country reforms and FDI inflows: how much difference do they make?’ World Development 26(7): 1299–1314.CrossRefGoogle Scholar
  15. Getz, K.A. and Volkema, R.J. (2001) ‘Culture, perceived corruption and economics’, Business and Society 40(1): 7–31.CrossRefGoogle Scholar
  16. Ghoshal, S. and Moran, P. (2005) ‘Towards a Good Theory of Management’, in J. Birkinshaw and G. Piramal (eds.) Sumantra Ghoshal on Management: A Force for Good, Upper Saddle River, NJ: Financial Times/Prentice Hall, pp 1–27.Google Scholar
  17. Global Corruption Report (2003) ‘Access to Information’, [www document] (accessed 20 November 2005).
  18. Gwartney, W., Lawson, R., Park, W., Edward, C., de Rugy, V. and Wagh, S. (2002) Economic Freedom of the World Annual Report, [www document] (accessed 15 June 2004).
  19. Hair Jr, J.F., Anderson, R.E., Tatham, R.L. and Black, W.C. (1992) Multivariate Data Analysis, Macmillan: New York.Google Scholar
  20. Haque, N.U. and Sahay, R. (1996) ‘Do government wage cuts budget deficits?’, IMF Working Papers 96/19, International Monetary Fund: Washington, DC.Google Scholar
  21. Heidenheimer, A.J. (1989) ‘Perspectives on the Perception of Corruption’, in A.J. Heidenheimer, M. Johnston and V.T. LeVine (eds.) Political Corruption: A Handbook, Transactions Publishers, New Brunswick, pp 141–154.Google Scholar
  22. Hofstede, G. (1980) Culture's Consequences: International Differences in Work-Related Values, Sage: Beverly Hills, CA.Google Scholar
  23. Hofstede, G. (2001) Culture's Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations, Sage: Thousand Oaks, CA.Google Scholar
  24. Horsley, J.P. (2003) ‘China's pioneering foray into open government: a tale of two cities’, [www document] (accessed 15 October 2005).
  25. Husted, B.W. (1994) ‘Honor among thieves: a transaction-cost interpretation of corruption in the third world’, Business Ethics Quarterly 4(1): 17–27.CrossRefGoogle Scholar
  26. Husted, B.W. (1999) ‘Wealth, culture and corruption’, Journal of International Business Studies 30(2): 339–360.CrossRefGoogle Scholar
  27. Husted, B.W. (2000) ‘The impact of national culture on software piracy’, Journal of Business Ethics 26(3): 197–212.CrossRefGoogle Scholar
  28. International Telecommunication Union (2003) ‘Digital access index’, [www document] (accessed 17 June 2004).
  29. Jaeger, A. (1986) ‘Organization development and national culture: where is the fit?’ Academy of Management Review 11(1): 178–190.CrossRefGoogle Scholar
  30. Jain, S. (2001) International Marketing, South Western Publishing: Mason, OH.Google Scholar
  31. Johnston, M. (1996) ‘The search for definition: the vitality of politics and the issue of corruption’, International Social Science Journal 149(Spring): 321–335.Google Scholar
  32. Kehoe, W.J. (1998) ‘The environment of ethics in global business’, Journal of Business and Behavioral Science 2(Fall): 47–56.Google Scholar
  33. Kennedy, P.A. (1992) Guide to Econometrics, MIT Press: Cambridge, MA.Google Scholar
  34. Klitgaard, R. (1988) ‘International cooperation against corruption’, Finance and Development 35(1): 3–7.Google Scholar
  35. Lamsdorff, J.G. (2003) ‘The Transparency International Corruption Perceptions Index 2003: framework document’, [www document] (accessed 15 June 2004).
  36. Lancaster, T.D. and Montinola, G.R. (1997) ‘Toward a methodology for the comparative study of political corruption’, Crime, Law and Social Change 27(3/4): 85–206.CrossRefGoogle Scholar
  37. LaPalombara, J. (1994) ‘Structural and institutional aspects of corruption’, Social Research 61(2): 325–350.Google Scholar
  38. Maddala, G.S. (1988) Introduction to Econometrics, Macmillan: New York.Google Scholar
  39. Macrae, J. (1982) ‘Underdevelopment and the economics of corruption: a game theory approach’, World Development 10(8): 677–687.CrossRefGoogle Scholar
  40. Mauro, P. (1995) ‘Corruption and growth’, Quarterly Journal of Economics 110(2): 681–712.CrossRefGoogle Scholar
  41. Norris, P and Zinnbauer, D (2002) ‘Giving voice to the voiceless: good governance, human development and mass communications’, Human Development Report Office Occasional Paper, Background paper for Human Development Report (UNDP), pp: 1–44, [www document] (accessed 27 February 2007).
  42. North, D.C. (1990) Institution, Institutional Change, and Economic Performance, Cambridge University Press: Cambridge.CrossRefGoogle Scholar
  43. Park, H. (2003) ‘Determinants of corruption: a cross-national analysis’, Multinational Business Review 11(2): 29–48.CrossRefGoogle Scholar
  44. Rose-Ackerman, S. (1978) Corruption: A Study of Political Economy, Academic Press: New York.Google Scholar
  45. Sanyal, R.N. and Samanta, S.K. (2001) ‘Determinants of bribery in international business’, Thunderbird International Business Review 46(2): 133–148.CrossRefGoogle Scholar
  46. Salbu, S.R. (2001) ‘Information technology in the war against international bribery and corruption: the next frontier of institutional reform’, Harvard Journal on Legislation 38(1): 67–102.Google Scholar
  47. Schleifer, A. and Vishny, R.W. (1993) ‘Corruption’, Quarterly Journal of Economics 108(3): 599–617.CrossRefGoogle Scholar
  48. Schroth, P.W. and Sharma, P. (2003) ‘Transnational law and technology as potential forces against corruption’, Management Decision 41(3): 296–303.CrossRefGoogle Scholar
  49. Schwartz, S.H. (1994) ‘Are there universal aspects in the structure and contents of human values?’ Journal of Social Issues 50(4): 19–45.CrossRefGoogle Scholar
  50. Smith, P.B., Dugan, S. and Trompenaars, F. (1996) ‘National culture and the values of organizational employees’, Journal of Cross Cultural Psychology 27(2): 231–264.CrossRefGoogle Scholar
  51. Sondergaard, M. (1994) ‘Hofstede's Consequences: A Study of Review, Citations, and Replications’, Organization Studies 15(3): 447–456.CrossRefGoogle Scholar
  52. Studenmund, A.H. (1992) Using Econometrics: A Practical Guide, HarperCollins: New York.Google Scholar
  53. Takyi-Asiedu, S. (1993) ‘Some socio-cultural factors retarding entrepreneurial activity in sub-saharan Africa’, Journal of Business Venturing 8(2): 91–98.CrossRefGoogle Scholar
  54. Tanzi, V. (1998) ‘Corruption around the world: causes, consequences, scope, and cures’, IMF Staff Papers 45(4): 559–594.CrossRefGoogle Scholar
  55. Tanzi, V. and Davoodi, H. (1997) ‘Corruption, public investment and growth’, IMF Working Paper 97/139 International Monetary Fund: Washington, DC.Google Scholar
  56. Transparency International (2005) ‘Corruption Perceptions Index’, [www document] (accessed 1 November 2005).
  57. Triandis, H.C. (1994) Culture and Social Behavior, McGraw-Hill: New York.Google Scholar
  58. Trompenaars, F. and Hampden-Turner, C. (1998) Riding the Waves of Culture: Understanding Diversity in Global Business, McGraw-Hill: New York.Google Scholar
  59. Treisman, D. (2000) ‘The causes of corruption: a cross national study’, Journal of Public Economics 76(3): 399–457.CrossRefGoogle Scholar
  60. Tullock, G. (1996) ‘Corruption theory and practice’, Contemporary Economic Policy 14(3): 6–13.CrossRefGoogle Scholar
  61. Van Klaveren, J. (1989) ‘The concept of corruption’, in A.J. Heidenheimer, M. Johnston and V. LeVine (eds.) Political Corruption: A Handbook, Transaction Publishers: New Brunswick, NJ, pp 83–94.Google Scholar
  62. Van Rijckeghern, C. and Weder, B. (2001) ‘Bureaucratic corruption and the rate of temptation: do wages in the civil service affect corruption, and by how much?’ Journal of Development Economics 65: 307–331.CrossRefGoogle Scholar
  63. Vitell, S.J., Nwachukwu, S.L. and Barnes, J.H. (1993) ‘The effects of culture on ethical decision-making: an application of Hofstede's typology’, Journal of Business Ethics 12(10): 753–760.CrossRefGoogle Scholar
  64. Wei, S.-J. (2000) ‘Natural openness and good government’, Unpublished Working Paper. 7765, NBER, Cambridge.Google Scholar
  65. Wei, S.-J. (1999) ‘How taxing is corruption on international investors?’ Review of Economics and Statistics 81(4): 1–12.Google Scholar
  66. White, H. (1980) ‘A heteroskedasticity-consistent covariance matrix estimator and direct test of heteroskedasticity’, Econometrica 48(4): 817–838.CrossRefGoogle Scholar
  67. World Values Survey (2001) ‘World values survey’, [www document] (accessed 15 June 2003).
  68. Zhao, H.J., Kim, H.S. and Du, J. (2003) ‘The impact of corruption and transparency on foreign direct investment: an empirical analysis’, Management International Review 43(1): 41–62.Google Scholar

Copyright information

© Academy of International Business 2007

Authors and Affiliations

  • Cassandra E DiRienzo
    • 1
    Email author
  • Jayoti Das
    • 1
  • Kathryn T Cort
    • 2
  • John BurbridgeJr
    • 1
  1. 1.Koury Business Center, Elon UniversityElonUSA
  2. 2.School of Business and Economics, North Carolina A & T State UniversityGreensboroUSA

Personalised recommendations