Getting bank financing: A study of Vietnamese private firms Le N.T.B., Venkatesh S., Nguyen T.V. NEU Business School, National Economics University, Giai Phong Road, Hanoi, Viet Nam; Asian Institute of Technology, Thailand; Faculty of Business Administration, University of Macau, Macau, China Abstract: Private firms in transition economies are operating in an extremely uncertain environment, with underdeveloped market institutions, poorly defined property rights, and absence of reliable business data. This raises a very basic question of how owners of these firms persuade bankers to make much needed loans. This study employs an institutional perspective and argues that firms' legitimacy positively influences their accessibility to bank financing. Specifically, this study develops a model that links networking, professional management practices, and growth stage with bank financing and tests that model using a sample of Vietnamese private firms. The results support the hypotheses that growth stage and networking greatly influence firms' accessibility to bank financing, and that the impact of networking on financing is contingent on the growth stage. © Springer Science + Business Media, LLC 2006. Author Keywords: Bank financing; Small and medium-sized enterprises (SMEs); Vietnam Year: 2006 Source title: Asia Pacific Journal of Management Volume: 23 Issue: 2 Page : 209-227 Cited by: 16 Link: Scorpus Link Correspondence Address: Le, N.T.B.; NEU Business School, National Economics University, Giai Phong Road, Hanoi, Viet Nam; email:
[email protected] ISSN: 2174561 DOI: 10.1007/s10490-006-7167-8 Language of Original Document: English Abbreviated Source Title: Asia Pacific Journal of Management Document Type: Article Source: Scopus Authors with affiliations: 1. Le, N.T.B., NEU Business School, National Economics University, Giai Phong Road, Hanoi, Viet Nam, Asian Institute of Technology, Thailand 2. Venkatesh, S., Asian Institute of Technology, Thailand 3. Nguyen, T.V., NEU Business School, National Economics University, Giai Phong Road, Hanoi, Viet Nam, Faculty of Business Administration, University of Macau, Macau, China
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