Perception of corruption influences entrepreneurship inside established companies

TL;DR

This paper investigates how perceptions of corruption affect intrapreneurship within established companies across 92 countries, revealing that corruption perceptions can facilitate or hinder entrepreneurial activities depending on a country's development level.

Contribution

It provides new empirical evidence on the nuanced effects of corruption perceptions on intrapreneurship, highlighting the moderating role of country development levels.

Findings

Corruption perception facilitates intrapreneurship in less developed countries.

A quadratic relationship exists between corruption perception and intrapreneurship.

Development level moderates the impact of corruption perceptions on intrapreneurship.

Abstract

Based on the Global Entrepreneurship Monitor (GEM) surveys and conducting a panel data estimation to test our hypothesis, this paper examines whether corruption perceptions might sand or grease the wheels for entrepreneurship inside companies or intrapreneurship in a sample of 92 countries for the period 2012 to 2019. Our results find that the corruption perception sands the wheel for intrapreneurship. There is evidence of a quadratic relation, but this relation is only clear for the less developed countries, which sort of moderate the very negative effect of corruption for these countries. The results also confirm that corruption influences differently on intrapreneurship depending on the level of development of the country.