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

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

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.

Suggested Citation

  • Adomako, Samuel & Ahsan, Mujtaba & Amankwah-Amoah, Joseph & Danso, Albert & Kesse, Kwabena & Frimpong, Kwabena, 2021. "Corruption and SME growth: the roles of institutional networking and financial slack," Journal of Institutional Economics, Cambridge University Press, vol. 17(4), pages 607-624, August.
    • Handle: RePEc:cup:jinsec:v:17:y:2021:i:4:p:607-624_5
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    Citations

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    Cited by:

    1. Mai Dong Tran & Samuel Adomako, 2022. "How environmental reputation and ethical behavior impact the relationship between environmental regulatory enforcement and environmental performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2489-2499, July.
    2. Adomako, Samuel & Amankwah-Amoah, Joseph & Donbesuur, Francis & Ahsan, Mujtaba & Danso, Albert & Uddin, Moshfique, 2022. "Strategic agility of SMEs in emerging economies: Antecedents, consequences and boundary conditions," International Business Review, Elsevier, vol. 31(6).
    3. Adomako, Samuel & Abdelgawad, Sondos G. & Ahsan, Mujtaba & Amankwah-Amoah, Joseph & Azaaviele Liedong, Tahiru, 2023. "Nonmarket strategy in emerging markets: The link between SMEs’ corporate political activity, corporate social responsibility, and firm competitiveness," Journal of Business Research, Elsevier, vol. 160(C).
    4. Yanyan Li & Yu Gao & Shanxing Gao, 2023. "Organizational slack, entrepreneurial orientation, and corporate political activity: From the behavioral theory of the firm," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    5. Adomako, Samuel & Ahsan, Mujtaba, 2022. "Entrepreneurial passion and SMEs’ performance: Moderating effects of financial resource availability and resource flexibility," Journal of Business Research, Elsevier, vol. 144(C), pages 122-135.
    6. Liang, Jing & Yang, Shilei & Xia, Yu, 2023. "The role of financial slack on the relationship between demand uncertainty and operational efficiency," International Journal of Production Economics, Elsevier, vol. 262(C).
    7. Phong Nguyen, Nguyen & Adomako, Samuel & Ahsan, Mujtaba, 2023. "The base-of- the-pyramid orientation and export performance of Vietnamese small and medium enterprises," Journal of Business Research, Elsevier, vol. 154(C).
    8. Zou, Na & Storz, Cornelia, 2023. "Why do some entrepreneurs thrive? A network content perspective," Journal of Business Research, Elsevier, vol. 161(C).

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