The Impact of Corruption in Host Countries on the Entry Mode Selection for MNEs _ A literature Review

Corruption in host country has an important effect on the entry mode selection for MNEs. Target at deepening the understanding of the scholars, the study reviews the related literature of this topic. First, this study gives a definition of corruption and tries to classify the corruption into certain types. Second, through the review of the existing literature the study illustrates how different types of corruption affect the entry mode selection for MNEs. To entry into the foreign market by equity entry mode or non-equity entry mode, and by wholly-owned subsidiaries or joint ventures is influenced by the corruption in the host countries. Also, the study is intended to review the literature that corruption will lead to the change of entry mode. Then the study focuses on moderator variables that influence the relationships between corruption and entry mode selection. Third, considering the corruption in home country, the study reviews the associated papers about how the corruption distance affects the strategic decision of MNEs. Last, the study points out the deficiencies of the existing paper and puts forward some suggestions for the future research.