On the road to legitimacy with anti-corruption practices. An empirical study of French SMEs

Abstract

Despite the importance of tackling corruption, business scholars have largely ignored the topic of anti-corruption. Using neo-institutionalist theory and the typology of organisational responses to institutional pressures, we investigated why and how small- and medium-sized enterprises (SMEs) implemented anti-corruption practices. Through a case study approach and 34 semi-structured interviews in French SMEs, we revealed the indirect effect of coercive isomorphism of the state and direct normative influence of large firms in business relations with the SMEs. To increase their legitimacy, SMEs' strategic response to various and diverse institutional pressures is divided between substantial and symbolic responses. The main answer of SMEs to institutional pressures from large firms was avoidance in relation to anti-corruption practices, thereby creating a façade of compliance with no metabolisation of anti-corruption actions. We point out the instrumental use of anti-corruption practices by SMEs to gain legitimacy. To be considered legitimate business partners by large firms, SMEs showed a façade of respectability in their anti-corruption actions.