Abstract
Bribery is deeply institutionalized in developing countries, causing severe pressure for multinational Companies (MNCs) from most market actors. Yet, research on bribery in international business (IB) gives limited insights. This paper investigates the nature of pressure arising from the institutionalized bribery practices and strategic responses of MNCs towards such pressure. Drawing on the neo-institutional theory and qualitative approach, we collected the data through 24 interviews of MNCs’ employees in Pakistani drug industry characterized by widespread bribery problems. The findings reveal how practices of key market actors translate the institutionalized bribery pressure for drug MNCs and how MNCs strategically respond to such pressures with a broad range of practices with unique foci and objectives. We extend the focus of bribery research in IB from intra-organizational issues to the larger institutional environment where bribery practices are socially situated. The study also extends micro institutional work in organization study by exploring invisible pressure and organizational responses towards such pressure.