Corruption and SME growth: the roles of institutional networking and financial slack

Samuel Adomako, Mujtaba Ahsan, Joseph Amankwah-Amoah, Albert Danso, Kwabena Kesse, Kwabena Frimpong

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    Abstract

    In this study, we investigate the mediating effect of institutional networking on the relationship between perceived corruption and the growth of small and medium-sized enterprises (SMEs). We also examine the moderating impact of financial slack on the relationship between perceived corruption and institutional networking. We test our moderated mediation model using data from 212 SMEs operating in Ghana. The findings from the study show that perceived corruption is positively related to institutional networking and this relationship is amplified when levels of financial slack are greater. The findings also show that institutional networking positively mediates the relationship between perceived corruption and SME growth. Theoretical and practical implications are discussed.
    Original languageEnglish
    JournalJournal of Institutional Economics
    Early online date10 Feb 2021
    DOIs
    Publication statusE-pub ahead of print - 10 Feb 2021

    Keywords

    • Ghana
    • growth
    • perceived corruption
    • SMEs

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