SMEs development and corruption: case of Kazakhstan
Abstract
The article presents a study of the corruption perception and the involvement of SMEs in corruption practices.
The main goal of the paper is to provide an analysis of corruption perception of the SMEs representatives, its parts and research methodology to provide an adequate picture and analysis of corruption of the Kazakhstan. For obtaining a comparative picture, we interviewed 500 representatives of SMEs and 500 civil servants. We used a mass survey (face-to-face) method.
The results show that the presence of “gap” between perception of corruption and degree of the respondents’ involvement in corrupt practices. The respondents believe that corruption is widespread, but they themselves were rarely involved in corrupt practices. The key message is that the SMEs representatives consider this problem to be acute, but they are not ready to talk about their own experience in this regard.
Keyword : corruption, institutional environment, Kazakhstan, perception, SMEs, survey
How to Cite
Suleimenova, G., Sadvokassova, A., Rakisheva, B., & Nurmaganbetov, A. (2018). SMEs development and corruption: case of Kazakhstan. Business: Theory and Practice, 19, 1-8. https://doi.org/10.3846/btp.2018.01
This work is licensed under a Creative Commons Attribution 4.0 International License.
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Uruzbaeva N (2016) Problems and ways of business climate improving in the regions. R-Economy 2 (1): 132–142. https://doi.org/10.15826/recon.2016.2.1.012
Varrich A (2016) Making Sense of Corruption through Interviews. In: Schwikerath A, Varraich A, Smith L (Ed) How to research corruption? Conference Proceeding. Interdisciplinary Corruption Research Forum. Amsterdam: 13–20.
Virglerová S, Dobes K, Vojtovič S (2016) The Perception of the State’s Influence on its Business Environment in the SMEs from Czech Republic. Revista “Administratie si Management Public” (RAMP) 26: 78–96 https://www.ceeol.com/search/article-detail?id=426884
Xun W, Chandramohan K, Bali A (2016) Corporate Governance and Bribery: Evidence from the World Business Environment Survey. In Financial Crimes: Psychological, Technological, and Ethical Issues: 219–234.
Aldrich НYe, Wiedenmayer G (1993) From Traits to Rates: An Ecological Perspective on Organizational Foundings. In: Katz JA, Brockhous RH (Eds) Advances in Entrepreneurship, Firm Emergence and Growth Greenwich. CT: JAI Press, 145–195.
Ayandibu AO, Houghton J (2017) The role of Small and Medium Scale Enterprise in local economic development (LED). Journal of Business and Retail Management Research (JBRMR) 11 (2): 133–139
http://www.jbrmr.com/admin/content/pdf/i-26_c-262.pdf
Barsukova S (2000) Informal economy and the network organization of space in Russia. The world of Russia 1: 52–68 [Barsukova S (2000) Neformal’naya ekonomika i setevaya organizatsia prostranstva Rossii. Mir Rossii 1: 52–68].
Brandt C, Eiro F (2016) Qualitative corruption research methods. In: Schwikerath A, Varraich A, Smith L (Ed) How to research corruption? Conference Proceeding Interdisciplinary Corruption Research Forum. Amsterdam, 34–40
https://www.ssoar.info/ssoar/bitstream/handle/document/52393/ssoar-2017-schwickerath_et_al-How_to_research_corruption_Conference.pdf ?sequence=1
Business climate (2016) Special review on corruption and the shadow economy. Atameken NCE of RK. ERI JSC [Delovoy klimat (2016) Spetsial’nyy obzor po korruptsii i tenevoy ekonomike. NPP Atameken. AO IEI] atameken.kz/uploads/content/files/Спец_обзор%20по%20коррупции-2016.pptx
Collins J, McMullen J, Reutzel C (2016) Distributive justice, corruption, and entrepreneurial behavior. Small Business Economics 47 (4): 981–1006. https://doi.org/10.1007/s11187-016-9751-8
CPI (2016) Corruption Perception Index 2016 https://www.transparency.org/news/feature/corruption_perceptions_in-dex_2016
Doing Business (2017) Doing Business 2017: Equal Opportunity for all http://www.doingbusiness.org/reports/global-reports/doing-business-2017
Fazekas M (2017) Red tape, bribery and government favoritisms: evidence from Europe. Crime, Law and Social Change: 1–27 https://www.researchgate.net/profile/Mihaly_Fazekas/publication/318169123_Red_tape_bribery_and_government_favouritism_evidence_from_Europe/links/5968a6a8458515e9afa76b61/Red-tape-bribery-and-government-favouritism-evidence-from-Europe.pdf
Emerson P (2006) Corruption competition and democracy. Journal of Development Economics 81 (1): 193–212 http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.469.6975&rep=rep1&type=pdf
Galli E, Mascia D, Rossi S (2017) Does Corruption Affect Access to Bank Credit for Micro and Small Businesses? Evidence from European MSMEs: ABDI Working Paper Series: 19 https://think-asia.org/handle/11540/7178
Gamberoni E, Gartner C, Giordano C, Lopez-Garcia P (2016) Is corruption efficiency – enhancing? A case study of nine Central and Eastern European countries: Working paper #1950/August
https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1950.en.pdf
Golovshchinsky K, Parkhomenko S, Rimsky V, Satarov G (2004) Business and Corruption: Problems of Counteraction: Final Report. M.: Indem [Golovshchinskiy K, Parkhomenko S A, Rimskiy V, Satarov G (2004) Biznes i korruptsiya: problemy protivodeystviya. Itogovyy otchet. M.: Indem] http://www.anti-corr.ru/cipe/CIPEbriefing.htm
ICVS (2008) International Crime Victim Survey http://wp.unil.ch/icvs/questionnaires/questionnaire-2008/
IEER (2013) Corruption and Satisfaction: SME Managers on Corruption http://gvi.hu/research_details/135/corruption_and_satisfaction:_sme_managers_on_corruption
Krammer S (2016) Greasing the wheels of change:bribery, institutions, and new product introductions in emerging markets http://eprints.whiterose.ac.uk/121645/1/S_Krammer_Bribery_New_Prod_Innovations_JOM.pdf
Lee K, Herold D, Yu A (2015) Small and Medium Enterprises and Corporate Social Responsibility Practice: A Swedish Perspective. Corporate Social Responsibility and Environmental Management 23 (2): 88–99. https://doi.org/10.1002/csr.1366
Mahfuzur R, Moshfique U, Lodorfos G (2017) Barriers to enter in foreign markets: evidence from SMEs in emerging market. International Marketing Review 34 (1): 68–86 http://www.emeraldinsight.com/doi/abs/10.1108/IMR-10-2014-0322
Makoya K (2017) CSR Challenges and Strategies for Small Businesses
http://www.tokyofoundation.org/en/articles/2017/csr-for-small-businesses
OECD (2017a) Economic Policy Reforms. Going to Growth: 348.
OECD (2017b). Enhancing the Contributions of SMEs in a Global and Digitalised Economy: 21.
OPORA NKO (2014) Small Business and Corruption: Prospects for Overcoming [OPORA NKO (2014) Malyi bizness i korruptsyia: perspectivy preodolenya] http://opora.ru/news/rezultaty-issledovaniya-opory-rossii-malyj-biznes-i-korruptsiya-perspektivy-preodoleniya.html
Povitkina M, Wysmulek I (2016). Quantitative methods in researching corruption: surveys, cross-national studies, and measurement issues. In: Schwikerath A, Varraich A, Smith (Ed) How to research corruption? Conference Proceeding. Interdisciplinary Corruption Research Forum. Amsterdam, 25–33.
Richards L (2016) Using Survey Methods to Research Corruption. In: Schwikerath A, Varraich A, Smith L (Ed) How to research corruption? Conference Proceeding. Interdisciplinary Corruption Research Forum. Amsterdam: 4–12.
Ronald U, Mendoza R, Lim A (2015) Grease or Sand in the Wheels of Commerce? Firm Level Evidence on Corruption and SMES. International Development 27 (4): 415–439. https://doi.org/10.1002/jid.3077
Schwab K (2017) The Global Competitiveness Report 2016–2017. WEF: 400.
Shagbazian G, Aistov A (2017) Entrepreneurial Activity and Institutions. The Impact of Rule of Law and Control of Corruption (July 11, 2017) https://ssrn.com/abstract=3000427
Skriba A, Urban D (2015) Condition of corruption in Belarus in perception of small and medium business: Policy Discussion Paper. IPM Research Center http://eng.research.by/publications/dp/pdp1502/
Suleimenova G (2005) Administrative barriers in the development of entrepreneurship. Kazakhstan-spectrum 2: 91–97 [Suleymenova G (2005) Administrativnye bar’yery v razvitii predprinimatel’stva. Kazakhstan-spektr 2: 91–97] http://kisi.kz/img/docs/1279.pdf
Tastulekova A, Bukeeva A (2016) Businessmen of the RK: Yes, corruption is a problem, but we have not encountered it [Tastulekova A, Bukeeva A (2016) Predprinimateli RK: Da, korruptsiya – problema, no my s ney ne stalkivalis’]. https://forbes.kz/stats/optimistyi_pessimistyi_i_dorogi_1
Uruzbaeva N (2016) Problems and ways of business climate improving in the regions. R-Economy 2 (1): 132–142. https://doi.org/10.15826/recon.2016.2.1.012
Varrich A (2016) Making Sense of Corruption through Interviews. In: Schwikerath A, Varraich A, Smith L (Ed) How to research corruption? Conference Proceeding. Interdisciplinary Corruption Research Forum. Amsterdam: 13–20.
Virglerová S, Dobes K, Vojtovič S (2016) The Perception of the State’s Influence on its Business Environment in the SMEs from Czech Republic. Revista “Administratie si Management Public” (RAMP) 26: 78–96 https://www.ceeol.com/search/article-detail?id=426884
Xun W, Chandramohan K, Bali A (2016) Corporate Governance and Bribery: Evidence from the World Business Environment Survey. In Financial Crimes: Psychological, Technological, and Ethical Issues: 219–234.