Environmental concerns continue to increase its prominence in developing countries’ policy and business agendas. Accordingly, a growing stream of literature investigates the factors influencing corporate environmental performance in developing countries. While such research has largely focused on large local firms and multinational corporations, recent debates are turning attention to small and medium enterprises (SMEs), given their potential impact in economic and environmental aspects. However, the literature is scarce and inconclusive with respect to how perceived corruption – a critical issue in many developing economies - is related to SMEs’ environmental performance, and what factors influence such relation. We use a survey of Ghanaian 242 SMEs to address this gap. We found that perceived institutional corruption is negatively related to environmental performance and such negative relation is increased by financial slack (i.e. potentially utilizable resources that can be diverted or redeployed for the achievement of organizational goals) and institutional networking efforts (i.e. an entrepreneur’s connections to governmental and public policy officeholders). However, pressures from primary and secondary stakeholders can decrease the negative effect of perceived corruption on environmental performance