SME resource acquisition: power dependence and induced bribery

What is it about?

How SMEs establish ties to obtain resources in the context of power-imbalanced dependence by using unethical and illegal “strategic practice” remains under-explored. We analyze the negative and positive effects of power dependence on business resource acquisition via regression analysis using survey data drawn from 232 SMEs. The findings indicate that power-imbalanced dependence among SMEs is associated with their use of bribery to establish political ties with officials for access to resources.

Featured Image

Why is it important?

Lack of exploration of how SMEs establish ties to access to resources in the context of power-imbalanced dependence leaves significant gaps in our understanding of how SMEs are able to survive and grow despite enormous institutional constraints.