Trading Favors for Marketing Advantage: Evidence from Hong Kong, China, and the United States

Abstract

This study examines the risk-taking paradigm in the context of international marketing activities. It explores the causes of questionable business practices of Hong Kong executives in international marketing activities and further substantiates the findings with two replication samples (i.e., Mainland Chinese executives and U.S. executives). The authors find that the nature of the corruption proposal and the operating business environment affect Hong Kong executives’ risk-taking behavior (i.e., risk recognition, risk adjustment, and risky choice). The behaviors of Mainland Chinese executives and U.S. executives show a different picture. Developmental and cultural differences among the three economies explain the discrepancies.

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