A multilevel framework for analysing organisational misconduct in emerging economies

Abstract

Organisational misconduct in emerging economies (EEs) undermines trust in local markets, distorts competition, and creates considerable economic and societal costs, with implications that increasingly extend beyond national borders. International business scholarship on the topic has grown substantially and generated valuable insights, yet it remains fragmented and conceptually limited in important ways. Cumulative understanding of organisational misconduct in EEs is constrained by two critical issues. First, the literature is characterised by a persistent developed-country bias that relies on oversimplified dichotomisations between developed and emerging economies, obscuring institutional complexity and limiting theoretical insight. Second, existing studies predominantly adopt single-level analyses that fail to capture how organisational misconduct emerges from dynamic interactions across economy, organisation, and individual levels. To address these limitations, we advance a multilevel analytical framework that integrates economy-level institutional conditions, organisational processes, and individual behaviour, while drawing attention to the frequent misalignment between formal rules (de jure) and their enactment in practice (de facto). We conclude by outlining a research agenda for advancing understanding of organisational misconduct in EEs and by offering actionable guidance for managers and policymakers navigating the institutional complexities of emerging economies and interconnected environments.