Journal of the Korea Management Engineers Society (한국경영공학회지)

Korea Management Engineers Society (한국경영공학회)
권호 표지

Corporate Political Activities on Firm Performance

기업의 정치적 활동이 기업성과에 미치는 영향

  • 김찬복 (한양대학교 일반대학원 경영학과)
  • Received : 2018.10.16
  • Accepted : 2018.12.31
  • Published : 2018.12.31
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Abstract

As global competition is intensifying, companies are entering not only developed markets but also emerging and developing countries. In emerging and developing countries, business-to-governmental relations are an essential factor influencing the firm performance. The purpose of this research is to examine the effects of corporate political activities on firm performance. Using the BEEPS data developed by the EBRD and the World Bank, the effect of various bribery activities regarded as corporate political activities on the firm performance was examined. Also, the moderating effect of competition type on the firm performance was proved. As the results, the bribery contribution, which is a corporate political activity, has a positive effect on the firm performance. Specifically, when infrastructure bribery occurred, costs and sales were higher, and when permission bribery was granted, profits, costs, and sales were higher. In addition, the effect of bribery as a corporate political activity on firm performance is moderated by competition type. These findings have academic and practical implications for empirical analyzing of SMEs' firm performance, guidelines suggestion for entry into the other countries, generalization possibility of using credible data, developing and designing export support systems and programs. Finally, limitations of the research and future research directions were discussed.

Keywords

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