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The architecture of interfirm illegality: how administrative structure influences regulatory punishment
About the Research
Corporate illegality involving multiple organizations has significant economic and social costs. However, the relationship between the organization of interfirm illegality and punishment remains a theoretical puzzle. We argue that the administrative structure—encompassing authority, roles, and formalization—supporting interfirm illegality is a double-edged sword: while it enhances coordination and control between lawbreakers, it also produces incriminating evidence that warrants severe penalties from regulators. However, when high-clout lawbreakers are involved, they can leverage their magnitude and influence to mitigate incriminating evidence and subsequently reduce punishment. Our analysis of a unique, multi-source dataset encompassing all cartels prosecuted by the European Commission provides robust support for this theory. Our findings caution against the widely held assumption that the punishment is proportional to the crime, as the level of administrative structure behind interfirm illegality and the lawbreaker’s corporate clout influence the severity of the punishment. We contribute to the literatures on corporate illegality and interfirm relationships.
About Fabrice Lumineau
Fabrice Lumineau is a Professor in Strategic Management at HKU Business School, The University of Hong Kong. His research investigates inter-organizational partnerships, the interplay between contract and trust in collaborative strategies, opportunism and ethical issues, and blockchain governance. He has over 50 publications, including in the top management journals, such as Academy of Management Annals, Academy of Management Journal, Academy of Management Review, Journal of International Business Studies, Journal of Management, Journal of Management Studies, Organization Science, Organization Studies, Research Policy, and Strategic Management Journal. He serves as an associate editor at the Journal of Management and on the editorial board of Strategic Management Journal, Organization Science, and Strategic Organization. Both his research and his teaching have granted him numerous awards. Fabrice has lived in France, the USA, Germany, Canada, Switzerland, Australia, and China. Prior to receiving his PhD from HEC Paris, he worked as a project manager in the insurance and investment banking industries.
Date: Thursday 12 June, 2025
Time: 12:45-14:15 CEST
Venue: Room Roland Calori (B3), (Zoom link provided to registered attendees)
Reminder: We no longer provide food as per school policy…
Should you want to attend, please register at https://forms.gle/rYxqPmw7cZsCrsHU8
