The Impact of Corruption on SMEs’ Trade Credit Management Effectiveness
Round 1
Reviewer 1 Report
Comments and Suggestions for AuthorsThe manuscript is interesting. It can be accepted in present form.
This manuscript presents a significant examination of the influence of corruption on the effectiveness of trade credit management in SMEs, addressing an important gap in existing research. Corruption-related activities frequently hinder the financial sustainability of SMEs, impacting their trade credit management and subsequently their capacity to contribute to economic growth. SMEs are vital to South Africa’s economy; thus, it is important for policymakers, entrepreneurs, and academics to comprehend the effects of corruption on their financial practices.
The quantitative research design of the study employs purposive sampling with a large sample of 450 SMEs throughout South Africa. The results of the study demonstrate the negative impact of corruption on trade credit management and also highlight an unexpected trend wherein SMEs show a willingness to participate in corrupt practices if it enhances the effectiveness of trade credit management.
The research emphasises the necessity of providing SMEs with appropriate tools and strategies for the effective management of trade credit, avoiding reliance on corrupt practices. This may enhance the rates of SME formation and contribute to South Africa's sustainable development objectives by promoting entrepreneurship and sustainable economic growth.
It is ok.
Author Response
Refer to the document attached detailing the authors' response to the comments raised by the reviewer.
Author Response File: 
Author Response.pdf
Reviewer 2 Report
Comments and Suggestions for AuthorsMy comment on the paper:
1. The author addresses the issue of corruption, yet a significant proportion of the content appears to be less pertinent to the subject of corruption in SMEs. It would be preferable for the author to concentrate on corruption research issues, with the addition of information pertaining to instances of corruption that have occurred or are believed to have occurred in the SME sector. Furthermore, the paper reviews existing research on corruption in SMEs, thereby elucidating the implications of corruption on these entities.
2. It is unclear how this contributes to the discussion of the research issues raised. Once again, the author's attention is solely focused on the issues that have been presented (GEM, EBO, TEA etc)
3. It is not clear what the author's position is on the issue of corruption. This is due to my inability to comprehend the arguments presented in the preceding paragraphs and their correlation with the concept of corruption.
4. It is recommended that this theory be presented at the beginning of the literature review section. Furthermore, it is essential to elucidate the correlation between this theory and the issues raised by the author.
5. The authors do not provide sufficient clarity regarding the unit of analysis, namely whether they are focusing on the individual or the organisation. The author has not provided a rationale for how they determined that the businesses under examination can be classified as small and medium-sized enterprises (SMEs). The criteria for selecting respondents are not clearly defined. The author provides the sample size but does not elucidate the criteria for respondents.
6. It would be beneficial to ascertain whether the face and/or content validity of the questionnaire were evaluated.
The author can see detailed on the attached paper.
Comments for author File: Comments.pdf
Author Response
Refer to the document attached detailing the authors' response to the comments raised by the reviewer.
Author Response File: Author Response.pdf
Reviewer 3 Report
Comments and Suggestions for Authors1. Originality and Relevance
The topic is original and relevant, addressing an underexplored area in SME financial management by examining the impact of corruption. It specifically fills a gap by focusing on micro-level effects of corruption on trade credit practices. This is particularly significant for developing economies like South Africa.
2. Contribution to the Subject Area
The paper contributes empirical evidence on how corruption affects SMEs’ trade credit management. It somewhat expands the literature by integrating asymmetric information theory into this context. It also offers relevant findings for policymakers.
3. Methodology Improvements
More detail is needed, one area of concern is the representativeness of the sample across industries. Better explanation of data handling could also strengthen reliability.
4. Consistency of Conclusions
The finding of around "positive" impacts of corruption requires further examination. I think the authors should elaborate further on the limitations of their study
5. References
I believe the paper could incorporate more recent studies on corruption’s impact on SMEs in other developing countries to broaden its scope.
6. Additional Comments on Tables and Figures
The tables and figures could benefit from additional labels or brief explanatory notes
Comments on the Quality of English Language
Professional proofreading could improve clarity of the paper
Author Response
Refer to the document attached detailing the authors' response to the comments raised by the reviewer.
Author Response File: Author Response.pdf
Round 2
Reviewer 2 Report
Comments and Suggestions for AuthorsAre you sure you have made the corrections? I see the introduction section is not change at all.
I appreciate the author effort to provide a comprehensive explanation; however, it is too long, especially at the beginning. Please make it more concise. The introduction needs to directly focus on explaining the main issues of corruption in SMEs in south Africa.
Author Response
Refer to the document attached detailing the authors' response to the comments raised by the reviewer.
Author Response File: Author Response.pdf
Round 3
Reviewer 2 Report
Comments and Suggestions for AuthorsOk it is enough
