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The Evolution and Control of Institutionalized Bribery: A study of pharmaceutical sales environment in developing country markets

Topic significance: Bribery control is one of the biggest challenge for multinational companies (MNCs) operating in developing country markets. These widespread practices are istitutionalized as they are strongly linked to weak socio-economic conditions and collective norms of those countries. Key objective and sub- objectives: The main objective of this research is to explore the evolution and control of institutionalized bribery in sales environment of developing country markets. This dissertation is a compilation of four articles. Each article's objectives are mentioned below: Paper 1- To propose a practice based approach to study unethical behavior in sales. Paper 2- To investigate the evolution process of bribery. Paper 3- To design a framework for multinationals to control institutionalized bribery. Paper 4- To study the strategic responses of multinationals' towards the pressure of institutionalized bribery. Implications: First, practice based approach employed in this research is a new and unique way to study unethical behavior in sales. Second, it sheds light on the dark side of business relationships by showing how bribery spread through the relationships and established as industrial and societal level norms. Third, I explore firm’s social responsibility role to fight against an important and a chronic problem for both business and society. Finally, study explores strategic ways through which firms can cope with institutionalized bribery.

Background:
I was working on my doctoral dissertation titled ‘Evolution and control of unethical practices in sales: a study of institutionalized bribery in developing country markets’. After a hard work, I have achived the first milestone towards the acadamic world. My dissertation has been externally examined and permission to defend has been granted. Public defense is planned on 29th November, 2019. Kone Foundation’s financial support (9+6 months’ grant during 2017 and 2018) played a major role in finalizing the dissertation. Therefore, I am specially thankful to the foundation. Now I am aiming for my post-doctoral research and Kone foundation is my obvious choice.

Objective of my dissertation:
Main purpose of my research was to investigate the social and emergent nature of bribery as an unethical practice in sales along with its control in developing country markets. I subdivided the main objective into three research questions that were addressed through four academic articles.

Theoratical and methodological framework:
Overall, my research was built on multiple theoretical perspectives: practice-based view (PBV); neo-institutional theory; and industrial network theory. I employed a qualitative approach to collect and analyze the data. The empirical data was collected from the pharmaceutical industry in Pakistan since bribery practices in sales were widely spread in that particular market.

Key findings
My research started from a systematic review of existing knowledge in sales ethics. This review article revealed the need to study unethical behavior from a social practice perspective. As a result, article 1 introduced a PBV and its applications in sales ethics. The second article empirically examined the evolution process of bribery in sales. Findings showed that bribery practices socially evolve in a sequential and partly overlapping process of four identifiable stages: early development; chain reaction; legitimization; and revision. The third and the fourth article of my dissertation emphasized on controlling bribery.
The third article was conceptual that introduced a practice-based strategic framework for MNCs to control bribery in developing countries. Finally, the fourth article empirically investigated the nature of invisible pressure of institutionalized bribery and related practices of MNCs to respond towards such pressure. Findings related to the pressure indicate that MNCs closely monitor bribery practices of market actors to make sense of invisible pressure. Results further discover a range of MNCs practices to respond towards such pressure along with practices’ types, focus, objectives and intended actors.

Theoretical and practical implications:
Overall, my dissertation shifts the focus of sales ethics and bribery in IB research from the dominated intra-organizational view to PBV that helps to understand the social and dynamic nature of corrupt practices and their control. Study open new avenues for institutional work to understand the nature of invisible pressure arising from informal institutions and related organizational responses. Study further offers important implications for organizations and policymakers to understand and control practically significant bribery phenomenon in sales in context of developing countries.

Once again, Thank you Kone Foundation :-)


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