Perception of corruption as a business obstacle, generalized trust and relation centrism in low- and middle-income nations: the moderating influence of governance

Olarewaju, Tolu; Tamvada, Jagannadha Pawan; McDowall-Emefiele, Sharin; Swaray, Raymond

Abstract

We examine regional differences in how generalized trust and relation centrism influence how 16,785 firms across 20 lower- and middle-income countries perceive corruption as a business obstacle. Using the machine learning method LASSO, our empirical findings indicate that higher out-group generalized trust is associated with increased perceptions of corruption hindering business operations. Conversely, higher in-group friend centrism aligns with reduced perceptions of corruption as an obstacle. Interestingly, regional disparities highlight that family centrism generally outweighs friend centrism in firms' perceptions of corruption obstacles. Furthermore, while legal institutional and regulatory quality partly mitigate this effect, political stability consistently plays the most significant role in weakening this association.

Citation

Olarewaju, T., Tamvada, J. P., McDowall-Emefiele, S., & Swaray, R. (online). Perception of corruption as a business obstacle, generalized trust and relation centrism in low- and middle-income nations: the moderating influence of governance. Review of Managerial Science, https://doi.org/10.1007/s11846-024-00802-9

• Journal Article Type: Article
• Acceptance Date: Aug 20, 2024
• Online Publication Date: Aug 28, 2024
• Deposit Date: Aug 28, 2024
• Publicly Available Date: Sep 2, 2024
• Journal: Review of Managerial Science
• Print ISSN: 1863-6683
• Electronic ISSN: 1863-6691
• Publisher: Springer
• Peer Reviewed: Peer Reviewed
• DOI: https://doi.org/10.1007/s11846-024-00802-9
• Keywords: Business; Corruption; Governance; Norms; Social; Values
• Public URL: https://hull-repository.worktribe.com/output/4791811