The price of kindness: perceived bribery pervasiveness and coping mechanisms in an emerging market

Abstract

We used a grounded theory approach to examine how business leaders in emerging markets cope with pervasiveness of bribery both psychologically and behaviorally. We conducted in-depth interviews with business leaders from various industries in Thailand through an emic approach to focus on how local cultural meaning system shapes the psychological processes underlying bribery conducts. We identified indicators of perceived bribery pervasiveness such as implicit forms of bribery and the temporal dimension of cultural transmission, indicating persistence of bribery pervasiveness. Moreover, contrary to conventional wisdom, we found that lay beliefs in Buddhist teachings reduce moral awareness and moral judgments of bribery while providing opportunities to wash away bad karma for engagement in bribery. These behavioral strategies and psychological coping mechanisms lead to a self-sustaining system for continuously engaging in bribery. We further developed a theoretical model of perceived bribery pervasiveness and provide implications for both local and multinational firms as well as policy makers in dealing with bribery in emerging markets.