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Ngoc Quynh Dao
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Dao
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Ngoc Quynh
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Item type:Publication, Innovation in corrupt environments: Firm strategies to cope with political corruption.(2022-06-30)This paper investigates three organizational behaviors in response to political corruption to accelerate innovation activities: (1) bribery, (2) lobbying through business associations, and (3) political connection in top management. Corruption impedes firm innovation by increasing cost and uncertainty in regulations, protectionism, R&D subsidies, provision of public goods, and intellectual property protection. Based on resource dependence theory, we argue that innovative firms can survive the detrimental effect of a corrupt environment because they act to minimize the dependence on external resources controlled by political actors. Employing a multi-level analysis of 15,483 firms in 39 countries from the World Bank Enterprise Survey (WBES) 2017 - 2019, we find the empirical evidence that supports (1) the significant role of lobbying and political connection in meditating the negative impact of managers' perception of corruption on product innovation. (2) In contrast to product innovation, managers' perception of corruption leads to process innovation as a strategy to improve internal efficiency and reduce dependence on external resources. (3) Under the presence of two strategies: lobbying and political connection, bribery has a less pronounced effect on process innovation and no significance on product innovation.Type:conference paper - Some of the metrics are blocked by yourconsent settings
Item type:Publication, The antecedent of psychic distance: Are political factors matter?(2022-07)Psychic distance stimuli including linguistic, cultural, economic, and political factors can prevent the flow of information between foreign markets and firms. Thus, it can adversely affect the interpretation of information, quality of judgment, and decision-making. Previous studies show that country-level factors are among the key determinants of psychic distance; whereas individual characteristics of managers such as work experience, education, language proficiency can strengthen or weaken the psychic distance perception but have less influence in predicting psychic distance. Among country-level factors, political factors are more volatile and contingent on political leaders, country elections, and regional conflicts. Political factors, however, remain underdeveloped in the literature of psychic distance and are partially conceptualized as static or unchanging in regulatory differences between countries in the institutional distance theory, or framing as administrative differences in the Ghemawat's CAGE framework. This study contributes to this literature gap in understanding the stimuli of political factors on psychic distance. I propose using firm surveys in technology industry in the top ten largest economies by GDP 2022 to examine two political factors: the differences in the political systems and country governance quality between home and host markets. These differences affect the firm’s capability to collect and process information as well as predict changes in the host country’s political environment. I expect that political factors positively correlate with psychic distance perception. The research’s findings contributes to understand political stimuli in psychic distance perception. In particular, how individual stimuli such as political experience, and networks between business and politicians may reduce psychic distance caused by cross-country political differences.Type:conference contribution