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WMS research seminar: The effects of petty corruption on innovation within small firms

Date Tuesday 9 April 2019
Time 1pm - 2pm
Where MSB.4.02, Waikato Management School, Hillcrest Road, Hamilton
Presenter Dr Nirosha Hewa Wellalage (Waikato Management School)
Admission Cost Free

What are the effects of petty corruption on innovation within micro, small and medium-sized enterprises - in emerging economies?

Dr Nirosha Hewa Wellalage, senior lecturer in finance at Waikato Management School, will present a research seminar on this topic on Tuesday, 9 April, starting at 1pm.

This research seminar is hosted by Waikato Management School and the New Zealand Institute for Business Research – Enterprise Innovation Unit.

Dr Wellalage has several years of experience working in the finance industry before moving to the University of Waikato.

Her main research interests are in the areas of corporate governance, small business finance, gender and SMEs, and emerging markets. She is an active researcher and has published her findings in several international refereed journals.

Dr Wellalage says bribery is a rational strategic response of micro, small and medium-sized enterprise innovators to compensate for a lack of kinship or political affiliations, and hedging against political risk.

Larger corporations exploit political affiliations, while smaller firms use bribery at the level of lower officials, compensating for lack of property rights, rule of law and an effective judiciary.

Analysis of World Bank Surveys, for South American countries, using propensity score matching indicates the determinants of the corruption–innovation relationship has a positive correlation between bribery and innovation.

Although the corruption is less damaging, it is a pervasive obstacle to economic development. Strong regulations can overcome this obstacle, as corruption only works in weak institutional structures.

All staff and students are welcome to attend this seminar, being held in room MSB.4.02