Emerging market multinationals (EMNCs) are becoming dominant players in the current era. They have shown their unique characteristics in the process of internationalization. Unlike multinationals from advanced economies, EMNCs are supported by country of origin they are provided incentives such as tax and regulation. In the past, analysts pay attention on the influence of corruption on MNEs’ entry mode and business strategies. Encounters with corruption of EMNC have become a cause of concern. In this paper, analyses are made about Chinese EMNCs’ attitudes toward corruption. Factors influencing corruption and root of corruption have been probed in this thesis. Specific determinants as to how emerging multinational companies are influenced by corruption have been developed in this thesis. Investigative analysis as to how they influence home country and other qualification has been elucidated. EMNCs tend to consider political risk less than developed countries. Emerging market multinational companies are seen to prefer equity modes of entry into the international markets.
On the contrary, some researchers argue corruption as an extra facilitator to reach the intended effect. It has been considered that bribes in certain situations are imperative for sustenance and furthering of positive agendas (Leff, 1964).). It has been argued by some businessmen and governmental officials that corruption can, to some extent, reduce uncertainties of the excessive regulations in countries with centralization upon economy (Huntington, 2006). They enable the growth of the company in the international markets. They help the individual firms establish itself in the local markets as well as ensures sustenance. The process of Bribery enables firms to shorten the processing time and get a satisfied result, which improve efficiency. Indirectly it helps the firms to increase efficiency. In light of arguments proposed by Huntington (2006), corruption is beneficial it is embodied as a break in monopoly market structure. There is excessive intrusion and rising competition that needs to be addressed. In these situations bribery becomes a easier way of handling the situation and getting ahead among the competition (Goudie, & Stasavage 1998) Certain studies also bolster this argument it has been observed that there is a positive relationship between corruption and Foreign Direct Investments. Empirical studies support this ideology (Egger & Winner 2005), apart from this the stimulating effects of corruption was notable in a long run (Al-Sadig, 2009).
It has been found that impact of corruption is found to impact the development of EMNC. In some instances these EMNC are found to contribute to the corruptive practices of the state.