The Mediating Effect of Overcompensation of Rationalisation on Instrumental Climate and Escalation of Corruption Relationship

Abstract

This paper employs cognitive dissonance theory to investigate the mediating effect of Overcompensation of Rationalisation (OCR) on instrumental climate and escalation of corruption relationship. Moreover, this study examines the role of loyalty as a moderator to reduce the impact of instrumental climate on OCR. This study uses laboratory experiments with 94 master’s degree students as participants. The results show that OCR fully mediates the relationship between the instrumental climate and the escalation of corruption. Instrumental climate leads an individual to OCR, which impacts on the corruption escalation. The analysis also shows that loyalty can moderate the effect of instrumental climate on OCR. It indicates that a level of loyalty enables an individual to filter the impact of instrumental climate on OCR. Besides, the intention of corruption also contributes to the escalation and snowballing effect of corruption. Surprisingly, it is also found that individuals with their experiences tend to be more expert, skilful, and efficient in committing acts of corruption. Those enable the perpetrator to be corrupt smoothly; the amount of corruption, in aggregate, is more massive without the increase of maximum scores so it can lead the evaluator on.