The Dark Side of Social Capital: Investigating the Role of Social Capital in the Tendency to Administrative Corruption

Document Type : Research/Original/Regular

Authors

1 Professor, Department of Public Administration, Faculty of Management and Economic, Tarbiat Modares University, Tehran, Iran

2 Assistant Professor, Department of Public Administration, Faculty of Management and Accounting, Toloue Mehr Qom Non-Profit Institute of Higher Education, Qom, Iran

3 PhD Student in Organizational Behavior Management, Head of Human Resource Training, Excellence, and Development Department, Oil Industries Commissioning and Operation Company, Tehran, Iran

Abstract

Most research on social capital has stressed its positive aspects and advantages, while informal relations and trust-based networks shaped based on social capital can enhance individual’s access to information, improve their trust and confidence, and increase the possibility of corruption. Taking this into account, the present paper aimed at studying the role of social capital in the tendency to administrative corruption through a descriptive-correlational research method. The statistical population was consisted of all governmental organizations’ employees, out of which 391 individuals were selected using convenience sampling technique. The questionnaire by Nahapiet and Ghoshal (1998) was used to investigate the social capital conditions, and the questionnaire by Gorsira et al (2016) was applied to study corruption motivators and tendency to corruption. Findings indicated that the existence of social capital among employees in the public sector intensifies the corruption motivators’ impact on the tendency to corruption, and if such individuals and groups have high levels of social capital, the possibility that corruption motivators could lead to administrative corruption is significantly increased.

Keywords


  1. Azimi, H., Atafar, A., & Shaemi Barzaki, A. (2010). “A Study of Managerial and Organizational Factors Affecting Financial Corruption in Government Organizations of Isfahan and Zanjan Provincial Centers”, Strategic Management Thought, 4 (2), pp. 129- 147. (in Persian)
  2. Baquero, M. (2015). “Corrupção, cultura política e capital social negativo no Brasil”, Revista Debates, 9 (2), pp. 139-157.
  3. Bourdieu, P. (1986). The forms of capital, Handbook of theory and research for the sociology of education, JG Richardson, New York, Greenwood.
  4. Byrne, B. M. (2010). Structural Equation Modeling with AMOS: Basic Concepts, Applications, & Programming, 2th edition, New York, Taylor & Francis Group.
  5. Cialdini, R. B. & Goldstein, N. J. (2004). “Social influence: Compliance and conformity”, Annual Review of Psychology, 55, pp. 591–621.
  6. Den Nieuwenboer, N. A. & Kaptein, M. (2008). “Spiraling down into corruption: A dynamic analysis of the social identity processes that cause corruption in organizations to grow”, Business Ethics, 83 (2), pp. 133–146.
  7. Dimant, E. (2013). “The nature of corruption: An interdisciplinary perspective”, Economics Discussion Papers, No. 2013-59. Kiel Institute for the World Economy (IfW), Kiel.
  8. Dimant, E. (2013). “The Nature of Corruption: An Interdisciplinary Perspective”, Economics Discussion Papers.
  9. Dong, B., Dulleck, U., & Torgler, B. (2012). “Conditional corruption”, Economic Psychology, 33 (3), pp. 609–627.
  10. Edelman, L.F., Bresnen, M., Newell, S., Scarbrough, H., & Swan, J. (2004). “The benefits and pitfalls of social capital: empirical evidence from two organizations in the United Kingdom”, British Journal of Management, 15 (1), pp. 59–69.
  11. Fornell, C. & Larcker, D.F. (1981). “Evaluating structural equation models with Unobservable variables & measurement error”, Marketing Research, 18 (1), pp. 39–47.
  12. Fukuyama, F. (2002). Social capital and development: the coming agenda, SAIS review, Vol. XXII, No. 1.
  13. Gorsira, M., Denkers, A., & Huisman, W. (2018). “Both sides of the coin: Motives for corruption among public officials and business employees”, Business Ethics, 151 (1), pp. 179-194.
  14. Gorsira, M., Steg, L., Denkers, A., & Huisman, W. (2018). “Corruption in organizations: Ethical climate and individual motives”, Administrative Sciences, 8 (1), 4, pp. 1-19.
  15. Graycar, A. & Aiden, S. (2012). “Corruption and Control: A Corruption Reduction Approach”, Journal of Financial Crime, 19 (4), pp. 384–399.
  16. Hair, JR., Joseph, F., Black, W. C., & Anderson, R. E. (2006). Multivariate Data Analysis, 7th edition, available at: http://www.mediafire.com/?mkrzmjmmonn (accessed 1 December 2013).
  17. Jha, A., Boudreaux, C. J., & Banerjee, V. (2018). “Political leanings and social capital”, Journal of behavioral and experimental economics, 72, pp. 95-105.
  18. Khalfakhani, M. (2009). “A Study of the Relationship between Social Capital and Administrative Corruption”, Strategy Quarterly, 18 (53), pp. 39-55. (in Persian)
  19. Kihl, L. A., Ndiaye, M., & Fink, J. (2018). “Corruption’s impact on organizational outcomes”, Social Responsibility Journal, 14 (1), pp. 40-60.
  20. Kogut, B. & Zander, U. (1992). “Knowledge of the firm, combinative capabilities and the replication of technology”, Organization Science, 3, pp. 383-397.
  21. Korandeh, M. & Fadeli Kiwani, M. (2017). “A Study of the Role of Social Capital in Reducing Corruption, Management and Accounting Studies”, International Conference on Management, Economics and Humanities with the Approach of Resistance Economics, Employment and Production, pp. 180-195. (in Persian)
  22. Krivokapic-Skoko, B. (2007). “Negative Social Capital and Conflicts: AsianEntrepreneurs in New Zealand Agriculture (1870s–1920s)”, Rural Society, 17 (3), pp. 286-298.
  23. Locke, E. A., Noorderhaven, N. G., Cannon, J. P., Doney, P. M., & Mullen, M. R. (1999). “Some reservations about social capital”, Academy of Management Review, 24 (1), pp. 8-11.
  24. Mahmoudi, A., Rahmati, S. R., Nasiri, K., & Jafari-Akha, M. (2018). “A Study of the Strategy for Combating Corruption from the Perspective of Islam”, Studies in Political Science, Law and Jurisprudence, 4 (1), pp. 64-79. (in Persian)
  25. Moghtadar, Y. & Ketabi, M. (2018). “The study of the relationship between social capital and soft power in Iran”, The approach of the Islamic Revolution, 12 (45), pp. 85-106. (in Persian)
  26. Nahapiet, J. & Ghoshal, S. (1998). “Social capital, intellectual capital, and the organizational advantage”, Academy of management review, 23 (2), pp. 242-266.
  27. Nikpour, A., Manzari-Tavakoli, A.R., Selajgeh, S., Purkiani, M., Arabpour, A.R. (2016). “The effect of organizational supervision with Islamic approach on corruption in Iranian government organizations”, Quarterly Journal of Strategy, 25 (79), pp. 93-116. (in Persian)
  28. Peltier-Rivest, D. (2018). “A model for preventing corruption”, Journal of Financial Crime, 25 (2), pp. 545-561.
  29. Pillai, K. G., Hodgkinson, G. P., Kalyanaram, G., & Nair, S. R. (2017). “The negative effects of social capital in organizations: A review and extension”, International Journal of Management Reviews, 19 (1), pp. 97-124.
  30. Pinto, J., Leana, C. R., & Pil, F. K. (2008). “Corrupt organizations or organizations of corrupt individuals? Two types of organizationlevel corruption”, Academy of Management Review, 33 (3), pp. 685–709.
  31. Prabowo, H. Y. (2014). “To be corrupt or not to be corrupt: Understanding the behavioral side of corruption in Indonesia”, Journal of Money Laundering Control, 17 (3), pp. 306-326.
  32. Prabowo, H. Y. (2014). “To Be Corrupt or Not to Be Corrupt: Understanding the Behavioral Side of Corruption in Indonesia”, Journal of Money Laundering Control, 17, pp. 306–326.
  33. Rabl, T. & Kühlmann, T. M. (2008). “Understanding corruption in organizations–development and empirical assessment of an action model”, Journal of business ethics, 82 (2), p. 477.
  34. Sayadzadeh, A. & Elmi, Z. (2013). “The relationship between corruption and social capital in growth patterns”, Social welfare, 13 (50), pp. 7-36. (in Persian)
  35. Sepahvand, R., Arefonejad, M., Sepahvand, M., & Fathi-Chegini, F. (2018). “The effect of structural capital on reducing corruption with the mediating role of individual motives for corruption”, Public Management Quarterly, 10 (4), pp. 583-604. (in Persian)
  36. Shabani, A. & Soleimani, M. (2010). “The study of the effects of corruption on social capital”, Cultural Engineering, 47 and 48, pp. 56-66. (in Persian)
  37. Silkoset, R. (2013). “Negative and positive effects of social capital on co-located firms' withholding efforts”, European Journal of Marketing, 47 (1/2), pp. 174-197.
  38. Simpson, S., Piquero, N., & Paternoster, R. (2002). “Rationality and corporate offending decisions”, Rational choice and criminal behavior: Recent research and future challenges, 32, pp. 25-39.
  39. Tabarsa, G.A., Quchani, F., & Badindehsh, M. (2015). “The effect of good governance on social capital”, Social Capital Management, 2 (2), pp. 198-177. (in Persian)
  40. Tabnak (2018). “What was the rank of corruption in Iran in 2018?” Published: March 29, News ID: 881786. (in Persian)
  41. Tantardini, M. & Garcia-Zamor, J. C. (2015). “Organizational social capital and anticorruption policies: an exploratory analysis”, Public Organization Review, 15 (4), pp. 599-609.
  42. Tavits, M. (2010). “Why Do People Engage in Corruption? The Case of Estonia”, Social Forces, 88 (3), pp. 1257–1279.
  43. Van Deth, J. W. & Zmerli, S. (2010). “Introduction: civicness, equality, and democracy—a “dark side” of social capital?”, American Behavioral Scientist, 52 (5), pp. 631-639.
  44. Villalonga-Olives, E. & Kawachi, I. (2017). “The dark side of social capital: A systematic review of the negative health effects of social capital”, Soc Sci Med, 194, pp. 105-127.
  45. Voliotis, S. (2017). “Establishing the Normative Standards that determine deviance in organizational corruption: is corruption within organizations antisocial or unethical?”, journal of business ethics, 140 (1), pp. 147-160.
  46. Yaghoubi, M. & Piri Yousefabadi, A.B. (2018). “Improving the processes of the talent management system in the light of social capital”, Public Management Research, 11 (41), pp. 191-215. (in Persian)
  47. Zarandi, S., Hamidiyehsari, Y., & Madani, J. (2017). “Factors Affecting Corruption in Governmental Organizations of the Islamic Republic of Iran”, Parliament and Strategy, 24 (91), pp. 165-202. (in Persian)