Corruption, South African Multinational Enterprises and Institutions in Africa

We examine the responses of South African multinational enterprises (MNEs) to corruption in African markets in the context of institutional voids.  Corruption is a source of uncertainty and additional transactional costs for MNEs internationalising into emerging markets and it necessitates a strategic response.  While these responses are intended to mitigate the costs of corruption, existing research suggests that they may also have an effect on the institutional frameworks in host countries. The research employs a qualitative study of a sample of MNEs with experience in internationalising into Africa.  The results indicate that corruption in African emerging markets is pervasive and the result of institutional voids in these countries. MNEs believe that strategic responses to corruption in African markets are important to address corruption operationally in the host country.