Examining small and medium enterprises’ responses to public personnel petty corruption: the case of “The Arab Republic of Egypt”

Corruption presents a significant challenge to the operational efficiency and sustainability of small and medium enterprises (SMEs), particularly in emerging economies. This study examines how SMEs in Egypt navigate public personnel petty corruption, exploring multi-dimensional causes of corruption and responses to corruption through a qualitative, interpretive approach to answer three research questions: what are the types and forms of corruption faced by SMEs in Egypt? How do SMEs respond to public personnel’s petty corruption? And what are the institutional dimensions shaping SMEs’ responses to corruption? This research draws on institutional theory to develop a multi-level framework to analyse the dimensions of corruption at the micro, meso and macro-levels. Findings revealed that SMEs adopt a spectrum of formal (resistance, escalation, legal action, third party delegation) and informal (bribes, facilitation payments, gifts) responses, with their decision-making influenced by sectoral demands, regulatory constraints, and socio-cultural norms. The study identifies two distinct response patterns: single-action responses and adaptive, multi-action responses combining one or more responses, where SMEs pragmatically shift their approach based on business survival or growth, and cost-benefit considerations. It also highlights the limitations of state-led anti-corruption measures and the role of informal networks in shaping business strategies. This research makes the following academic contributions to the literature by refining the conceptualisation of SMEs’ responses to petty corruption within underperforming institutional environments: 1) Identifies forms and types of corruption, and SMEs’ owner-managers’ perceptions to corruption; 2) Conceptualises six types of responses and five strategies that SMEs in Egypt mobilise to survive and/or expand their business with prevalent levels of corruption. Strategies adopt a response or combine more than one response contingent with the aspired outcome for the business and aligned with enterprises’ resources; 3) Examines institutional dimensions shaping SMEs’ responses to corruption on the micro, meso and macro-levels; 4) It delivers actionable policy recommendations to strengthen regulatory framework, enhance institutional support for SMEs, and promote sustainable business practices in corruption-prone markets.

Name dc:type.qualificationname

PhD

Level dc:type.qualificationlevel

PhD thesis

Grantor dc:publisher.institution

Middlesex University

Year dc:date.issued

2024

Author dc:creator

• Abdelghaly, P.

• Petty corruption
• responses to corruption
• small and medium enterprises
• institutional environment
• formal institutions
• informal institutions

Identifier

oai:repository.mdx.ac.uk:340vvx

OAI identifier oai:identifier

oai:repository.mdx.ac.uk:340vvx