Political patronage can significantly influence institutional efficiency by creating dependencies that may undermine merit-based governance. When appointments and resources are distributed based on loyalty rather than competence, it often leads to inefficiencies, as individuals may lack the necessary skills for their positions. This can cultivate a culture of nepotism and diminish accountability. Furthermore, patronage systems can stifle innovation and discourage talented individuals from entering public service, as their efforts might not be rewarded. As a result, political patronage can ultimately compromise the effectiveness of governmental institutions and reduce public trust.