Perceptions of Corruption and Informality Among Businesspeople

Abstract

This research assesses perception of corruption in business-to-business and business-to-government interactions by using empirical evidence from Serbia. Based on the survey data, it captures the perceptions of corruption of business owners and managers of small and medium enterprises (SMEs) and examines their attitudes towards informal, licit, or illicit, business practices. The typology of SMEs according to their opinion on corruption- and institutional-related obstacles resulted in three different clusters, based on several variables. Moreover, empirical findings show that business is not much hindered by regulations but with a common lack of trust in institutions, crime, and perceived corruption. SMEs are perceived as particularly affected by a negative corrupt environment where large companies are seen as the source of corruption. The findings allow for the creation of lawful and incorruptible business policies, as well as ideas on preventing the common practice of illicit trading with job positions in the public sector.

Editorial

“…The third research is by Markić et al (2022) who examine the impact of knowledge management on the organizational performance of companies in Bosnia and Herzegovina. The paper finds that the size of companies affects systematically knowledge management, which is reported to have a positive impact on various indicators measuring performance of companies.The following few studies are more economically oriented, including the first contribution by Frey et al (2022) who investigate perception of corruption, but in two different contexts, corruption in businessto-business and business-to-government interactions, relying on primary evidence from Serbia. The analysis shows that small and medium enterprises are specifically affected by negative corrupt environment, while large companies are seen often as the…”

“…The following few studies are more economically oriented, including the first contribution by Frey et al (2022) who investigate perception of corruption, but in two different contexts, corruption in businessto-business and business-to-government interactions, relying on primary evidence from Serbia. The analysis shows that small and medium enterprises are specifically affected by negative corrupt environment, while large companies are seen often as the…”