TY  - JOUR
T1  - How Political Connections Influence the Success of Small and Medium Enterprises
A1  - Gaygysyz Ashyrov
A1  - Oliver Lukason
JF  - Annals of Organizational Culture, Leadership and External Engagement Journal
JO  - Ann Organ Cult Leadersh Extern Engagem J
SN  - 3108-4176
Y1  - 2024
VL  - 5
IS  - 1
DO  - 10.51847/VCHg3eHuEr
SP  - 62
EP  - 71
N2  - This study examines how political connections affect the performance of small and medium enterprises (SMEs) in Vietnam. Using a panel fixed effects approach, data was collected biennially from 2005 to 2015, focusing on Vietnamese SMEs in collaboration with the Central Institute for Economic Management (CIEM), the Development Economics Research Group (DERG), and the Institute of Labor Science and Social Affairs (ILSSA), at the University of Copenhagen. The results show that political connections have a significant negative impact on SME performance. While these connections provide benefits such as easier access to bank loans, tax breaks, and smoother regulatory processes, they also require firms to incur higher informal payments and labor costs, making inefficient resource allocation. Furthermore, the impact of political ties is more pronounced in regions with weaker institutional frameworks.
UR  - https://apsshs.com/article/how-political-connections-influence-the-success-of-small-and-medium-enterprises-wv356dubzxeic3n
ER  -