Volume 35, Issue 4 (Winter 2023)
JMDP 2023, 35(4): 39-74 |
Back to browse issues page
Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
Sepahvand M, Hakkak M, Sepahvand R, Nazarpouri A. Designing and Explaining a Model for the Formation of Cronyism in the Organization. JMDP 2023; 35 (4) :39-74
URL: http://jmdp.ir/article-1-4574-en.html
URL: http://jmdp.ir/article-1-4574-en.html
1- Faculty of Economics and Administrative Sciences, Lorestan University, Khorramabad, Iran
2- Department of Management, Faculty of Economics and Administrative Sciences, Lorestan University, Khorramabad, Iran. , hakkak.m@lu.ac.ir
3- Department of Management, Faculty of Economics and Administrative Sciences, Lorestan University, Khorramabad, Iran.
2- Department of Management, Faculty of Economics and Administrative Sciences, Lorestan University, Khorramabad, Iran. , hakkak.m@lu.ac.ir
3- Department of Management, Faculty of Economics and Administrative Sciences, Lorestan University, Khorramabad, Iran.
Abstract: (811 Views)
Purpose: This research was conducted with the goal of identifying the causes and roots of Cronyism in governmental organizations of Lorestan Province.
Methodology: The present research was a survey-type regarding purpose, it was descriptive from the viewpoint of data collection method, and with regard to the nature of data, it was a qualitative research based on the grounded theory. The statistical population was comprised of governmental organizations’ senior managers with at least 4 years of managerial experience and with academic education at doctoral level in the fields of management, economics, and law. Applying theoretical sampling method and saturation rule, we selected fifteen managers. The required data were collected using semi-structured interviews.
Findings: Results show that 183 identified open codes were combined in the framework of 93 subcategories and 25 main categories, which were then shaped into 6 main layers including causal conditions, central category, contextual conditions, intervening conditions, strategies and consequences.
Originality: Presenting a model for organizational cronyism, which includes the most important and underlying factors in the fields of nepotism and gangsterism, the present research can help policymakers and researchers find out the roots of these factors and subsequently, implement strategies and mechanisms to overcome the negative consequences.
Implications: Paying attention to policy issues, transparency, accountability, reconsidering performance evaluation programs, and finally, enhancing meritocracy based on objective criteria can largely prevent the occurrence of cronyism in the organization.
Methodology: The present research was a survey-type regarding purpose, it was descriptive from the viewpoint of data collection method, and with regard to the nature of data, it was a qualitative research based on the grounded theory. The statistical population was comprised of governmental organizations’ senior managers with at least 4 years of managerial experience and with academic education at doctoral level in the fields of management, economics, and law. Applying theoretical sampling method and saturation rule, we selected fifteen managers. The required data were collected using semi-structured interviews.
Findings: Results show that 183 identified open codes were combined in the framework of 93 subcategories and 25 main categories, which were then shaped into 6 main layers including causal conditions, central category, contextual conditions, intervening conditions, strategies and consequences.
Originality: Presenting a model for organizational cronyism, which includes the most important and underlying factors in the fields of nepotism and gangsterism, the present research can help policymakers and researchers find out the roots of these factors and subsequently, implement strategies and mechanisms to overcome the negative consequences.
Implications: Paying attention to policy issues, transparency, accountability, reconsidering performance evaluation programs, and finally, enhancing meritocracy based on objective criteria can largely prevent the occurrence of cronyism in the organization.
Type of Study: Applicable |
Received: Jan 06 2023 | Accepted: Mar 04 2023 | ePublished: Jul 26 2023
Received: Jan 06 2023 | Accepted: Mar 04 2023 | ePublished: Jul 26 2023
References
1. Adly, A. I. (2009). Politically-Embedded Cronyism: The Case of Post-Liberalization Egypt. Business and Politics, 11(4), 1-26. [DOI:10.2202/1469-3569.1268]
2. Akca, M. (2020). An Investigation of the Relationship between Favoritism and Workplace Deviance: Meditation Role of Negative Emotions. In Analyzing Workplace Deviance in Modern Organizations (pp. 114-138): IGI Global. [DOI:10.4018/978-1-5225-9996-8.ch007]
3. Alexeev, M., & Song, Y. (2013). Corruption and Product Market Competition: An Empirical Investigation. Journal of Development Economics, 103(1), 154-166. [DOI:10.1016/j.jdeveco.2013.02.010]
4. Aligica, P. D., & Tarko, V. (2014). Crony Capitalism: Rent Seeking, Institutions and Ideology. Kyklos, 67(2), 156-176. [DOI:10.1111/kykl.12048]
5. Allen, L., & Li, G. (2011). Clawbacks and Cronyism: Evidence from China. Financial Management, 40(3), 733-756. [DOI:10.1111/j.1755-053X.2011.01159.x]
6. Anokhin, S., & Schulze, W. S. (2009). Entrepreneurship, Innovation, and Corruption. Journal of Business Venturing, 24(5), 465-476. [DOI:10.1016/j.jbusvent.2008.06.001]
7. April, K. A., Dharani, B., & Peters, K. (2012). Impact of Locus of Control Expectancy on Level of Well-Being. Review of European Studies, 4(2), 124. [DOI:10.5539/res.v4n2p124]
8. Arasli, H., & Tumer, M. (2008). Nepotism, Favoritism and Cronyism: A Study of Their Effects on Job Stress and Job Satisfaction in the Banking Industry of North Cyprus. Social Behavior and Personality: An International Journal, 36(9), 1237-1250. [DOI:10.2224/sbp.2008.36.9.1237]
9. Arshed, N., Carter, S., & Mason, C. (2014). The Ineffectiveness of Entrepreneurship Policy: Is Policy Formulation to Blame? Small Business Economics, 43(1), 639-659. [DOI:10.1007/s11187-014-9554-8]
10. Aydogan, I. (2009). Favoritism in the Turkish Educational System: Nepotism, Cronyism and Patronage. Online Submission, 4(1), 19-35.
11. Barnett, A., Yandle, B., & Naufal, G. (2013). Regulation, Trust, and Cronyism in Middle Eastern Societies: The Simple Economics of "Wasta". The Journal of Socio-Economics, 44(1), 41-46. [DOI:10.1016/j.socec.2013.02.004]
12. Barnett, W. P., & Sorenson, O. (2002). The Red Queen in Organizational Creation and Development. Industrial and Corporate Change, 11(2), 289-325. [DOI:10.1093/icc/11.2.289]
13. Begley, T. M., Khatri, N., & Tsang, E. W. (2010). Networks and Cronyism: A Social Exchange Analysis. Asia Pacific Journal of Management, 27, 281-297. [DOI:10.1007/s10490-009-9137-4]
14. Bilal, A. R., Fatima, T., & Akoorie, M. (2017). Cronyism as a Constraint in Social Capital Development: Investigating Dark Side of Social Relation. Paper Presented at the Academy of Management Proceedings. [DOI:10.5465/AMBPP.2017.10751abstract]
15. Chen, Z., Sun, Y., Newman, A., & Xu, W. (2012). Entrepreneurs, Organizational Members, Political Participation and Preferential Treatment: Evidence from China. International Small Business Journal, 30(8), 873-889. [DOI:10.1177/0266242611407534]
16. Coco, G., & Lagravinese, R. (2014). Cronyism and Education Performance. Economic Modelling, 38(1), 443-450. [DOI:10.1016/j.econmod.2014.01.027]
17. De Clercq, D., Fatima, T., & Jahanzeb, S. (2022). Cronies, Procrastinators, and Leaders: A Conservation of Resources Perspective on Employees' Responses to Organizational Cronyism. European Journal of Work and Organizational Psychology, 31(1), 77-88. [DOI:10.1080/1359432X.2021.1928076]
18. Du, F., Tang, G., & Young, S. M. (2012). Influence Activities and Favoritism in Subjective Performance Evaluation: Evidence from Chinese State-Owned Enterprises. The Accounting Review, 87(5), 1555-1588. [DOI:10.2308/accr-50196]
19. Gohmann, S. F. (2012). Institutions, Latent Entrepreneurship, and Self-Employment: An International Comparison. Entrepreneurship Theory and Practice, 36(2), 295-321. [DOI:10.1111/j.1540-6520.2010.00406.x]
20. Henderson, D. R. (2012). The Economics and History of Cronyism. George Mason University.
21. Hmieleski, K. M., & Lerner, D. A. (2013). The Dark Triad: Narcissism, Psychopathy, and Machiavellianism as Predictors of Entrepreneurial Entry (Summary). Frontiers of Entrepreneurship Research, 33(4), 6.
22. Holcombe, R. G. (2013). Crony Capitalism: By-Product of Big Government. The Independent Review, 17(4), 541-559.
23. Hosseinverdi, F., & Doroodian, M. (2020). The Relationship among Job Rotation, Musculoskeletal Disorders and Human Resource Productivity: The Case of Iran Carton Company. The Journal of Productivity Management, 14(2), 141-161. [In Farsi]
https://jpm.tabriz.iau.ir/article_673463.html?lang=en
24. Johnson, S., & Mitton, T. (2003). Cronyism and Capital Controls: Evidence from Malaysia. Journal of Financial Economics, 67(2), 351-382. [DOI:10.1016/S0304-405X(02)00255-6]
25. Keikha, A., & Shahbakhsh Ghalami, I. (2020). The Role of Administrative Trading in Job Destructive Reflections: with the Mediating Role of Employees' Political Behavior. Management and Development Process, 33(3), 31-47. [http://jmdp.ir/article-1-3851-fa.html] [DOI:10.52547/jmdp.33.3.31]
26. Keles, H. N., Ozkan, T. K., & Bezirci, M. (2011). A Study on the Effects of Nepotism, Favoritism and Cronyism on Organizational Trust in the Auditing Process in Family Businesses in Turkey. International Business & Economics Research Journal (IBER), 10(9), 9-16. [DOI:10.19030/iber.v10i9.5622]
27. Khatri, N. (2016). Definitions of Cronyism, Corruption, and Crony Capitalism. Crony Capitalism in India: Establishing Robust Counteractive Institutional Frameworks, 3-7. [DOI:10.1007/978-1-137-58287-4_1]
28. Khatri, N., Tsang, E. W., & Begley, T. M. (2003). Cronyism: The Downside of Social Networking. Paper Presented at the Academy of Management Proceedings. [DOI:10.5465/ambpp.2003.13792813]
29. Khatri, N., Tsang, E. W., & Begley, T. M. (2006). Cronyism: A Cross-Cultural Analysis. Journal of International Business Studies, 37(1), 61-75. [DOI:10.1057/palgrave.jibs.8400171]
30. Krueger, A. O. (2002). Why Crony Capitalism is bad for Economic Growth. Crony Capitalism and Economic Growth in Latin America: Theory and Evidence, 1-23.
31. Kwon, I. (2006). Endogenous Favoritism in Organizations. Topics in Theoretical Economics, 6(1), 1-26. [DOI:10.2202/1534-598X.1273]
32. Li, P. P. (2009). The Duality of Crony Corruption in Economic Transition: Toward an Integrated Framework. Journal of Business Ethics, 85(1), 41-55. [DOI:10.1007/s10551-008-9747-7]
33. Lo, B., & Field, M. J. (2009). Conflict of Interest in Medical Research, Education, and Practice: The National Academies Press.
34. Loveridge, R. (2006). Developing Institutions-'Crony Capitalism'and National Capabilities: A European Perspective. Asian Business & Management, 5(1), 113-136. [DOI:10.1057/palgrave.abm.9200160]
35. Macionis, G., & John, L. (2010). Sociology (7th Canadian Ed.) Toronto. Ontario: PearsonCanada Inc.
36. Marks, J. (2009). Nationalist Policy-Making and Crony Capitalism in the Maghreb: The Old Economics Hinders the New. International Affairs, 85(5), 951-962. [DOI:10.1111/j.1468-2346.2009.00840.x]
37. Mazumdar, S. (2008). Crony Capitalism and India: Before and After Liberalization. Institute for Studies in Industrial Development. MPRA Paper No. 19627.
38. Mohammadi, J., Bagheri, M. S., Safarian, S., & Alavi Borazjani, S. A. (2016). The Role of Nepotism in Job Satisfaction and Job Performance. Organizational Resources Management Researchs, 6(1), 237-257. [In Farsi] [http://ormr.modares.ac.ir/article-28-4531-fa.html]
39. Pearce, J., & Huang, L. (2014). Workplace Favoritism: Why It Damages Trust and Persists. The Merage School of Business Working Paper. Irvine, CA: University of California.
40. Pervez, S., Ul Haq, M. A., & Ahmed, M. A. (2019). Linking Cronyism, Psychological Contract Breach, and Moral Disengagement: A Study of Public Sector University Teachers. IBT Journal of Business Studies (JBS), 1(1), 170-183. [DOI:10.46745/ilma.jbs.2019.15.01.14]
41. Pourezzat, A. A., Ghorbani, A., Abdi, J., & Najjar Shams, F. (2018). Recall of New Spoil System as Administrative Trader. Journal of Public Administration, 10(2), 209-226. [In Farsi]
42. Saleem, M. A., Yaseen, A., & Zahra, S. (2018). Predictors of Organizational Commitment in Public Sector Hospitals of Pakistan-A Moderated Mediation Study. Journal of Health Management, 20(2), 206-225. [DOI:10.1177/0972063418763656]
43. Shaheen, S., Abrar, M., Saleem, S., Shabbir, R., & Zulfiqar, S. (2021). Linking Organizational Cronyism to Deviant Workplace Behavior: Testing the Mediating Role of Employee Negligence in Pakistani Higher Education Institutions. International Journal of Leadership in Education, 1-23. [DOI:10.1080/13603124.2020.1869313]
44. Shaheen, S., Bari, M. W., Hameed, F., & Anwar, M. M. (2019). Organizational Cronyism as an Antecedent of Ingratiation: Mediating Role of Relational Psychological Contract. Frontiers in Psychology, 10, 1609. [DOI:10.3389/fpsyg.2019.01609] [PMID] [PMCID]
45. Shaheen, S., Bashir, S., & Khan, A. K. (2017). Examining Organizational Cronyism as an Antecedent of Workplace Deviance in Public Sector Organizations. Public Personnel Management, 46(3), 308-323. [DOI:10.1177/0091026017716655]
46. Shaheen, S., Zulfiqar, S., Saleem, S., & Shehazadi, G. (2020). Does Organizational Cronyism Lead to Lower Employee Performance? Examining the Mediating Role of Employee Engagement and Moderating Role of Islamic Work Ethics. Frontiers in Psychology, 11, 579560. [DOI:10.3389/fpsyg.2020.579560] [PMID] [PMCID]
47. Shaner, J., & Maznevski, M. (2011). The Relationship between Networks, Institutional Development, and Performance in Foreign Investments. Strategic Management Journal, 32(5), 556-568. [DOI:10.1002/smj.903]
48. Silverman, D. (2016). Introducing Qualitative Research. Qualitative Research, 3(3), 14-25.
49. Sischka, P. E., Melzer, A., Schmidt, A. F., & Steffgen, G. (2021). Psychological Contract Violation or Basic Need Frustration? Psychological Mechanisms behind the Effects of Workplace Bullying. Frontiers in Psychology, 12(1), 627968. [DOI:10.3389/fpsyg.2021.627968] [PMID] [PMCID]
50. Smith, D. J., & Sutter, D. S. (2012). Gauging the Perception of Cronyism in the United States. Mercatus Center. [DOI:10.2139/ssrn.2099777]
51. Soleimanof, S. (2016). Cronyism and Entrepreneurship: An International Analysis of the Influence of Cronysim on Country Level Productive and Unproductive Entrepreneurship. (Doctor of Philosophy). Oklahoma State University,
52. Strauss, A., & Corbin, J. (1998). Basics of Qualitative Research Techniques: Sage Publications.
53. Thierer, A., & Skorup, B. (2013). A History of Cronyism and Capture in the Information Technology Sector. Journal of Technology Law & Policy, 18(1), 131-196. [DOI:10.2139/ssrn.2288082]
54. Tonoyan, V., Strohmeyer, R., Habib, M., & Perlitz, M. (2010). Corruption and Entrepreneurship: How Formal and Informal Institutions Shape Small Firm Behavior in Transition and Mature Market Economies. Entrepreneurship Theory and Practice, 34(5), 803-832. [DOI:10.1111/j.1540-6520.2010.00394.x]
55. Turhan, M. (2014). Organizational Cronyism: A Scale Development and Validation from the Perspective of Teachers. Journal of Business Ethics, 123(1), 295-308. [DOI:10.1007/s10551-013-1839-3]
56. Wang, J. J., & Lalwani, A. K. (2019). The Distinct Influence of Power Distance Perception and Power Distance Values on Customer Satisfaction in Response to Loyalty Programs. International Journal of Research in Marketing, 36(4), 580-596. [DOI:10.1016/j.ijresmar.2018.11.006]
57. Wei, S. J. (2001). Domestic Crony Capitalism and International Fickle Capital: Is There a Connection? International Finance, 4(1), 15-45. [DOI:10.1111/1468-2362.00064]
58. Zare, R., Fathyzadeh, A., & Bahmani, A. (2018). Organizational Nepotism in Public Organizations, Conceptualization, Effective Factors and Consequenses. Organizational Behaviour Studies Quarterly, 7(1), 31-56. [In Farsi] [http://obs.sinaweb.net/article_31572.html?lang=en]
59. Zhou, W. (2013). Political Connections and Entrepreneurial Investment: Evidence from China's Transition Economy. Journal of Business Venturing, 28(2), 299-315. [DOI:10.1016/j.jbusvent.2012.05.004]
| Rights and permissions | |
 |
This work is licensed under a Creative Commons Attribution 4.0 International License. |
