Inhaltsbereich
Prof. Pratyush Sharma (University of Alabama)
- Date: Monday, July 1st, 2024
- Time: 3:30 pm - 5:00 pm
- Location: Ludwigstr. 28 VG/II; Room 211b
- Title: "Digital Transformation of Countries and Occupational Fraud Magnitude Within Firms"
- Abstract: This multilevel study incorporates both the resource-based view and the institution-based view to address an important but previously underexplored question: How does countries’ digital transformation, an institutional factor, relate to the magnitude of occupational fraud (OCCFR) within firms? Digital transformation refers to the extent to which countries differ in terms of their (1) digital infrastructure, (2) digital institutions and governance, and (3) digital innovation and change. Due to its positive societal consequences, digital transformation has become a rallying cause for policymakers across the globe. However, its unintended consequences on firms are not yet fully appreciated. Using a unique dataset of 3,974 OCCFR cases from 41 countries, we find that the extent of digital infrastructure in a country is positively associated with the magnitude of OCCFR in firms, while the strength of the country’s digital institutions and governance is negatively related to such magnitude. We also examine how firm-level internal controls moderate the effects of digital transformation. As countries focus on digitally transforming their economies, they should be aware that digital transformation is a “double-edged sword,” and that developing digital infrastructure without creating strong digital institutions and governance at the country level can negate efforts to control the magnitude of OCCFR at the firm level. Overall, our findings will help firms align their strategies with their institutional environments and help countries better manage their digital transformation while assisting firms to overcome OCCFR.
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