The Returns of Criminal Capital: An Organizational Perspective

• In Event: Terrorism and/as State Crime

Abstract

Research has shown that the acquisition of criminal capital has important effects on criminal outcomes. In other words, greater investment in criminal capital results in higher illegal returns. Unfortunately, much of this research has focused on individual offenders and little attention has been given to importance of capital in criminal organizations. Drawing from theories in organizational behavior, this study offers a formal theoretical model for examining criminal capital at the organizational level. We then test this theory using a sample of 279 violent extremist organizations drawn from the Leadership of the Extreme and Dangerous for Innovative Results dataset and their corresponding attack data collected from the Global Terrorism Database. Our results suggest that the acquisition of criminal capital is beneficial for criminal organizations. More specifically, criminal organizations with greater capital have the capabilities and resources to engage in sophisticated acts of violence. We conclude with the theoretical and practical implications of our results, as well as directions for future research.

Authors

• Michael K. Logan, University of Nebraska at Omaha

• Gina S. Ligon, University of Nebraska at Omaha

• Douglas C. Derrick, University of Nebraska at Omaha