Responding to Corruption in Sub-Saharan Africa: Institutional Pressures and Strategic Response of Korean Firms

This study explores how Korean firms use bribery and political network development as a strategic response to institutional pressures and bureaucratic inefficiencies in Sub-Saharan Africa (SSA). Based on in-depth interviews with ten Korean entrepreneurs operating across various SSA countries, the research finds that Korean firms frequently utilize petty bribery initially to counteract unethical demands from low-ranking government officials and to expedite administrative processes. However, this approach is short-lived and fails to yield sustainable competitive advantages. Instead, long-term success in these complex institutional environments relies on cultivating trust-based, reciprocal relationships with high-level government officials. These relationships, founded on mutual strategic benefit rather than merely financial exchanges, enable firms to mitigate bureaucratic obstacles and reduce dependency on low-level corruption over time. Nevertheless, the pressure to engage in petty corruption remains a continuous challenge, often compelling firms to maintain these ethically ambiguous practices. This study contributes to a deeper understanding of non-market strategies in weak institutional contexts and offers practical insights into how foreign firms manage corruption-related challenges in emerging markets.