Romanian Business Leaders’ Perceptions of Business-to-Business Corruption: Leading More Responsible Businesses?

Abstract

Business-to-business (B2B) corruption, also known as private corruption, refers to unethical or illicit activities between private parties, without the direct participation of the state. Existing literature on the topic, while still limited, has taken several avenues, from qualitative studies to perception-based surveys and research experiments. Upon reviewing key studies and their findings, this article concentrates on research questions related to: business people’s perceptions on the determinants that favor B2B corruption in Romania, consequences of the phenomenon, and potential solutions. Findings are based on primary data collected through a 2019 questionnaire administered to 120 business leaders in Romania. Results confirm earlier studies’ findings that general context, malfunction of the institutions, and mentality favor B2B corruption, and that there is a lack of consensus among the business community on how to recognize and deal with various forms of B2B corruption, despite the widely spread belief that B2B corruption negatively affects business activities. Also, both internal and external solutions are considered to work against B2B corruption. The current article also opens new avenues in the literature, showing that: the probability to face B2B corruption increases with business leaders’ professional experience; preferences on how to deal with corruption cases vary based on a firm’s capital structure (domestic vs. foreign), reflecting the importance of organizational culture; and business leaders overwhelmingly want to fight against B2B corruption through both internal and external measures. Substantial progress, however, will require a proper common understanding by the private sector of what constitutes B2B corruption, including its causes, consequences, and remedies.