JED, Vol 15, No.1, April 2013, pp 74-90 | DOI: 10.33301/2013.15.01.04
Banking Relationship and Bank Financing: The Case of Vietnamese Small and Medium-sized Enterprises
Abstract:Banking relationship is seen as a critical factor for Small and Medium-sized Enterprises (SMEs) in getting bank financing. In this study, I develop a model that examines the relative importance of inter-organizational and inter-personal banking relationships on firm bank financing, and report an empirical test from a sample of SMEs in the transition economy of Vietnam. The results support the central hypothesis that close banking relationships play an important role in getting bank financing. However, inter-organizational and inter-personal banking relationships are not equally important in helping SMEs access bank loans. The study provides theoretical and managerial implications.
Keywords:Banking relationship, inter-organizational relationship, inter-personal relationship, bank financing, SMEs.