The dark shadow of corruption on new product development

Abstract

Purpose

The study examines the effects of corruption activities on new product development of firms. The roles of senior managers in the relationship between corruption activities and new product development are also studies.

Design/methodology/approach

The data of Indian firms are collected from the Enterprise Survey conducted by World Bank in 2014. Variables on corruption, new product development, and other firm level factors are considered in the study. Logistic regression is used to examine the effect of firm's engagement in corruption activities on new product development.

Findings

Corruption activities of firms is negatively related to new product development. Senior manager's industry experience and engagement in regulatory activities weaken the negative relationship between firm's engagement in corruption activities and new products development.

Practical implications

With the increased focus on innovation, organizational managers have to work on the development of new products, and understanding of the negative relationship between engagement in corruption activities and new product development will help them to achieve the desired organizational goals.

Originality/value

The study contributes in three ways. Firstly, the paper extends the theoretical understanding of the implication of a non-market strategy, corruption on new product development. Secondly, the study contributes to the existing literature on the antecedents of new product development. Finally, the roles of senior managers helps to understand the importance of their industry and regulatory experience in the main relationship.

Citation

Banerjee, S. (2022), "The dark shadow of corruption on new product development", Benchmarking: An International Journal, Vol. 29 No. 9, pp. 2733-2756. https://doi.org/10.1108/BIJ-04-2021-0234