The effect of environmental factor: corruption on sourcing financial resources by KIBS SMEs for new market pioneering in a developing economy

Abstract

There prevailing environmental factor in a developing economy is the bribery and corruption menace in especially in the acquisition of debt finances for businesses. Hence, this study examines the effect of environmental factors, bribery, and corruption on sourcing finance by Knowledge-Intensive Businesses (KIBS) SMEs' new market pioneering in Nigeria. The study discusses the concept of KIBS, the new market pioneering and external debt financing, and the menace of bribery and corruption. The study suggests that policymakers should back up the pioneering innovation with policies that can protect KIBS owners in obtaining debt finances without being pressured to give bribes. Also, the new government anti-corruption campaign should include every citizen involved in any form of economic transaction, whether private or public sectors. This study will contribute to the body of empirical study in entrepreneurial finance and innovation in developing economies.