Self-regulation and Corruption in Extractive Industries: Integrating Market and Non-Market Strategy to Make Transparency Pay

88 Pages Posted: 17 Apr 2025 Last revised: 2 Jan 2025

See all articles by Shirley Tang

Shirley Tang

Bocconi University - Department of Management and Technology

Daniel W. Elfenbein

Washington University in St. Louis - John M. Olin Business School

Tatenda Pasipanodya

Washington University in St. Louis - John M. Olin Business School

Date Written: December 22, 2024

Abstract

This study explores how some oil and gas firms sought to leverage participation in the Extractive Industries Transparency Initiative (EITI)—a multi-stakeholder, anti-corruption initiative—to their advantage by re-aligning their market and non-market strategies. Firms with strong technical capabilities and origins in high-governance countries were more likely to support EITI, and these firms repositioned their operations both geographically and in the technological space to mitigate risks of transparency commitments. After mandatory disclosure rules were introduced, EITI supporters secured more oil and gas licenses than non-supporters. Analysis of lobbying records reveals how these firms integrated political activity with capability development to strengthen competitiveness. The findings highlight how voluntary initiatives can promote competitiveness by aligning self-regulation with strategic goals in dynamic regulatory environments and complex stakeholder ecosystems. 

Keywords: self-regulation, non-market strategy, stakeholder management, corporate transparency, corruption, Integrated strategy, multi-stakeholder initiative

JEL Classification: L5, L71, M14, M16

Suggested Citation

Tang, Shirley and Elfenbein, Daniel W. and Pasipanodya, Tatenda,

Self-regulation and Corruption in Extractive Industries: Integrating Market and Non-Market Strategy to Make Transparency Pay

(December 22, 2024). Available at SSRN: https://ssrn.com/abstract=3970011 or http://dx.doi.org/10.2139/ssrn.3970011

Shirley Tang

Bocconi University - Department of Management and Technology ( email )

Via Roentgen 1
Milan, MI 20136
Italy

Daniel W. Elfenbein (Contact Author)

Washington University in St. Louis - John M. Olin Business School ( email )

One Brookings Drive
Campus Box 1156
St. Louis, MO 63130-4899
United States

HOME PAGE: http://www.elfenbein.net

Tatenda Pasipanodya

Washington University in St. Louis - John M. Olin Business School ( email )

St. Louis, MO
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
224
Abstract Views
1,368
Rank
293,979
PlumX Metrics