Abstract

Environmental influences on the introduction of new products are a central theme in entrepreneurship and organizational theory. However, because emerging economies can breed corruption, the conventional assumptions and consequences of how and when entrepreneurs introduce new products to the market may not hold in these environments. For example, the strength of legal and regulatory institutions may determine the cost of doing business, and resultant action by entrepreneurs. Using variance by city, we examine bribery in emerging economies, suggesting that bribery has a significant multilevel relationship with entrepreneurial firms’ propensity to introduce new products (Martin et al., 2007). Central to our inquiry is the investigation of why, given varying levels of corruption between cities, does bribery pay off for firms in some institutional environments but not in others? Hence, this study takes an important step in identifying causal explanations about how bribery may facilitate or hinder new product introductions amid varying levels of institutional environments.

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