Institutions, resource dependence and the dual nature of corruption in firm internationalisation

İngilizce (OpenAlex)

Despite extensive research on institutions and firm internationalisation, the joint firm and macro-level effects of informal relationships, that is, corruption, on firm internationalisation, particularly within specific industrial contexts (resource-based vs. non-resource industries), remain underexplored. To investigate how firms internationalise under 2 boundary conditions – resource dependency and variations in institutional quality – we apply the Heckman-type selection bias and use 186,027 firms spread across 137 countries, with data collected through multiple firm surveys conducted by the World Bank Enterprise Surveys between 2006 and 2024. Our empirical findings demonstrate the double-edged sword of corruption. While it positively affects firm exports by mitigating bureaucratic procedures at the managerial level, the effect on exports turns negative as it increases uncertainty and operational costs at the macro-level. The effects are accelerated for firms in resource-based sectors. We highlight the interplay between corruption, resource dependencies and internationalisation and provide targeted policy and practical implications.