Microfoundations of Small Business Tax Behaviour: A Capability Perspective

17 Pages Posted: 6 Jul 2018

See all articles by Martina Battisti

Martina Battisti

Massey University - New Zealand Centre for Small and Medium Enterprise Research

David Deakins

Massey University - NZ Centre for SME Research

Date Written: July 2018

Abstract

Small business tax behaviour has received surprisingly little attention. We argue that an organizational capability perspective using microfoundations will allow us to better understand the relationships between different drivers and the dynamics of small business tax behaviour. This study draws on in‐depth interviews with 42 small business owners who are matched with the firms’ factual tax compliance status. Using grounded theory, we build a framework that (a) identifies different microfoundations of small business capability to manage tax and (b) explains the dynamic nature of the relationship between organizational capability and compliance. Findings suggest that high capability does not necessarily translate into high tax compliance and this relationship is mediated by the owner‐managers’ perceptions of taxation as well changes in the economic and regulatory environment.

Suggested Citation

Battisti, Martina and Deakins, David, Microfoundations of Small Business Tax Behaviour: A Capability Perspective (July 2018). British Journal of Management, Vol. 29, Issue 3, pp. 497-513, 2018. Available at SSRN: https://ssrn.com/abstract=3208429 or http://dx.doi.org/10.1111/1467-8551.12244

Martina Battisti (Contact Author)

Massey University - New Zealand Centre for Small and Medium Enterprise Research ( email )

60-62 Wallace Street
Private Box 756
Wellington
New Zealand
+64 (0) 4 801 5799 (Phone)

David Deakins

Massey University - NZ Centre for SME Research ( email )

60-62 Wallace St.
Private Box 756
Wellington
New Zealand

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
0
Abstract Views
537
PlumX Metrics