Strategic Responses to Corruption: An Exploration Study of Danish Companies in Brazil

Frederikke Darfelt

Student thesis: Master thesis

Abstract

This study sets out to explore corruption in Brazil and the way that Danish MNEs and their Brazilian subsidiaries respond to corruption. A contextual analysis of Brazil gives an overview of Brazilian historical, political, economic and sociocultural environment and lays a background for the understanding of current levels of corruption in the country. Theoretically, this thesis relies on a conceptual framework starting out with the broad academic field of institutional theory using it as background for explaining corruption as semi-formal illegitimate institutional processes. Hereafter, a conceptual framework for strategic responses to institutional processes is discussed and utilized as a way of framing the analysis of how Danish MNEs and their Brazilian subsidiaries respond to corruption in Brazil. Semi-formal illegitimate institutions have previously been studied through the typology of strategic organizational responses to institutional processes. The concept has been utilized in combination with the typology of strategic responses to institutional processes in previous research studying gang violence. However, the concept of semi-formal illegitimate researchers has not yet utilized this theoretical combination to investigate how organizations respond to corruption. This study endeavors to add to previous research by analyzing the concept of corruption as a semi-formal illegitimate institution through the typology of strategic responses to institutional processes. It does so, by analyzing how Danish MNEs and their Brazilian subsidiaries respond to corruption in Brazil. The findings in the study indicate that Danish MNEs and their Brazilian subsidiaries adopt various strategies when responding to corruption in a Brazilian institutional environment. Theoretical, methodological and managerial implications are presented and a menu of different responses is provided for academics and managers.

EducationsMSc in Business, Language and Culture, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2016
Number of pages103