The impact of corruption on the export intensity of SMEs in Tunisia: moderating effects of political instability and regulatory obstacles

Abstract

PurposeThis paper aims to investigate the moderating effect of political instability and regulatory obstacles on the relationship between corruption and export intensity in the context of Tunisian small- and medium-sized enterprises (SMEs).Design/methodology/approachThis study uses data from the World Bank Enterprise Survey (WBES). The sample consists of 537 Tunisian SMEs. The partial least squares method was used to analyse the data.FindingsThe direct effect of corruption on export intensity was found to be non-significant. It was significantly negative when corruption was combined with regulatory obstacles, whereas it was positive when corruption coexisted with political instability. Additional analyses revealed that results were sensitive to firm size (small versus medium) and sector of activity (service versus manufacturing).Research limitations/implicationsThis paper has some limitations related to the use of secondary data. Enhanced variable measurements and more detailed data collection are recommended for future studies.Practical implicationsThis paper is useful to researchers and policymakers who are interested in understanding the effects of a poor institutional environment on SME exports in developing countries.Originality/valueThis paper considers the impact of corruption on the export intensity of SMEs in the presence of political instability and regulatory obstacles in Tunisia. To the best of the authors’ knowledge, the joint effect of these institutional variables on the exports of firms has not been examined in previous research.