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

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