The cost of political interference in the public sector: the case of 'Electricité Du Liban'

Sayah, Maher Al

doi:10.1504/emjm.2017.085877

Cited by 1 publication

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“…Lebanon serves as a living example of institutional deterioration. Sayah (2017) revealed the burden of the political interference over the energy sector and its economic outcomes. Lebanese citizens rely on privately owned generators to overcome the inefficiencies in the energy supply.…”

Section: Entrepreneurship Development Under Inefficient Institutional...mentioning

confidence: 99%

“…Well-connected construction firms were privileged in acquiring public contracts that were inefficiently executed. Sayah (2017) revealed the country's estimated minimum economic losses in figures when it comes to the deterioration of the energy-producing facilities influenced by the lack in the political will to react and to regulate its inefficiencies. Faccio (2006) revealed that under an inefficient institutional environment, the rates of political corruption are highly estimated to rise alongside the entrepreneurial political connections.…”

Section: Entrepreneurship Development Under Inefficient Institutional...mentioning

confidence: 99%

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Hustle and influence: the dynamics of illicit small business and political connections

Sayah

Salloum

Jarrar

et al. 2023

EBR

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Purpose This study aims to explore the political dimension of social network theory and assess how these connections motivate entrepreneurial activity and enhance postentry stages. The authors take an individualistic approach to the topic of institutional deterioration by uncovering the potential opportunities it can create, as entrepreneurship often arises when a market opportunity is perceived. Design/methodology/approach This study used a quantitative approach, using a self-selection sampling method to target private entities that own electric generators (also known as “illicit SMEs”) who are providing electricity services to the community despite the deterioration of the public energy sector in Lebanon. Data was collected through a survey administered electronically to 230 illicit SMEs, using a judgmental sampling method to ensure representation from all Lebanese governorates. The collected data was analyzed using ordinal least squares regression models. Findings The findings indicate a significant relationship between institutional deterioration and the reinvestment rate of entrepreneurs, with the moderating effect of political connections suggesting that the impact of institutional deterioration is dependent on the strength of an entrepreneur’s political connections. Practical implications The research findings demonstrate the significant influence of social ties and political connections on entrepreneurial activities, particularly in the context of SMEs that are providing services “illegally”. These results shed light on the importance of considering the role of social and political factors in the success and sustainability of entrepreneurial ventures operating in challenging environments. Originality/value Entrepreneurial studies typically focus on free market platforms and supply-demand associations, assuming perfect government conditions. However, this study differs from previous research by highlighting the positive impact of social ties on entrepreneurial market access within a socially linked environment. The findings suggest the importance of considering social connections in entrepreneurial studies, particularly in challenging economic and political contexts.

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Section: Entrepreneurship Development Under Inefficient Institutional...mentioning

confidence: 99%

Section: Entrepreneurship Development Under Inefficient Institutional...mentioning

confidence: 99%

Hustle and influence: the dynamics of illicit small business and political connections

Sayah

Salloum

Jarrar

et al. 2023

EBR

View full text Add to dashboard Cite

show abstract

The cost of political interference in the public sector: the case of 'Electricité Du Liban'

Cited by 1 publication

References 0 publications

Hustle and influence: the dynamics of illicit small business and political connections

Hustle and influence: the dynamics of illicit small business and political connections

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