CONTINGENCY FACTORS INFLUENCING THE ETHICAL BEHAVIOUR OF SMALL ENTERPRISES
Received: 29th September 2023; Revised: 30th November 2023, 08th December 2023; Accepted: 10th December 2023
Keywords:
Small Enterprises, Ethical Behaviour, Contingency Factors, Focus GroupsAbstract
The ethical behavior of small enterprises is less understood than those of large companies, because of their diversity, size, entrepreneurial management, as well as the methodological problems related to data collection and analyses. The importance of this research is paramount because the measures and sanctions adopted and applied to eliminate unethical behaviors have to be tailored for various types of firms, working in different socio-economic contexts. Our main research objective is thus to identify the main contingency factors that shape the unethical behavior of small business organizations. We organized a series of online focus groups with customers and entrepreneurs from three different European countries – France, Italy and the UK - in the first six months of 2023. Findings indicate three contingency factors that mainly shape the unethical behavior of small organizations: the time horizon of organizations’ existence, their embeddedness in value added chains and/or networks, and their type of customers. Considering these contingency factors, our study discusses their influence on the ethical behavior of small enterprises and their theoretical and managerial implications.
References
Abiodun, A.J., & Oyeniyi, O.J. (2014). Ethical dilemmas in management: An African perspective. Journal of Business Systems, Governance and Ethics, 6 (2), 36–44. https://doi.org/10.15209/jbsge.v6i2.203
Bencsik, A., Machová, R., & Csókás, R.L. (2018). Survey of ethical managerial behavior – a three country comparative study. Acta Polytechnica Hungarica, 15 (6), 179-198. https://doi.org/10.12700/APH.15.6.2018.6.10
Bouchetara, M., Amrani, S.A., Zerouti, M., Bouchenak, K.S.M., & Mehddeb, N. (2021). The impact of contingency factors on the balanced scorecard adoption: Evidence from Algeria. Business Ethics and Leadership, 5 (4), 32-47. https://doi.org/10.21272/bel.5(4).32-47.2021
DiMaggio, Paul J., & Powell, W.W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48, 147-160. https://doi.org/10.2307/2095101
Drazin, R., & Van de Ven, A.H. (1985). Alternative forms of fit in contingency theory. Administrative Science Quarterly, 30 (4), 514–539. https://doi.org/10.2307/2392695
European Commission (2003). SME definition. https://single-market-economy.ec.europa.eu/smes/sme-definition_en [accessed May 2022].
Fassin, Y., Van Rossem, A., & Buelens, M. (2011). Small-business owner-managers’ perceptions of business ethics and CSR-related concepts. Journal of Business Ethics, 98, 425–453. https://doi.org/10.1007/s10551-010-0586-y
Fennell, M.L. (1980). The effects of environmental characteristics on the structure of hospital clusters. Administrative Science Quarterly, 25, 485-510. https://doi.org/10.2307/2392265
Longenecker, J.G., Moore, C.W., Petty, J.W., Palich, L.E., & McKinney, J.A. (2006). Ethical attitudes in small businesses and large corporations: Theory and empirical findings from a tracking study spanning three decades. Journal of Small Business Management, 44 (2), 167-183. https://doi.org/10.1111/j.1540-627X.2006.00162.x
Maron, S., Lussier, R. N., & Sonfield, M. (2019). Entrepreneurial strategy: The relationship between firm size and levels of innovation and risk in small businesses. Journal of Small Business Strategy, 29 (3), 33-45.
Moore, G., & Spence, L.J. (2006). Small and medium-sized enterprises & corporate social responsibility: Identifying the knowledge gaps. Journal of Business Ethics, 67 (3), 219-226. https://doi.org/10.1007/s10551-006-9180-8Murphy, M. (1996). Small Business Management. London: Pitman Publishing.
Quinn, J.J. (1997). Personal ethics and business ethics: The ethical attitudes of owner/managers of small business. Journal of Business Ethics, 16 (2), 119-127. https://doi.org/10.1023/A:1017901032728
Sinclair, A. (1993). Approaches on organisational culture and ethics. Journal of Business Ethics, 12 (1), 63-73. https://doi.org/10.1007/BF01845788
Spence, L.J. (1999). Does size matter? The state of the art in small business ethics. Business Ethics, the Environment & Responsibility, 8 (3), 163-174. https://doi.org/10.1111/1467-8608.00144
Spence, L.J., & Rutherfoord, R. (2003). Small business and empirical perspectives in business ethics: Editorial. Journal of Business Ethics, 47, 1–5. https://doi.org/10.1023/A:1026284727037
https://doi.org/10.1023/A:1026205109290
Spence, E., & Van Heekeren, B. (2005). Advertising Ethics. Upper Saddle River: Pearson Education Inc.
Thompson, J., & Smith, H. (1991). Social responsibility and small business: Suggestions for research. Journal of Small Business Management, 29 (1), 30-44.
Turyakira, P.K. (2018). Ethical practices of small and medium-sized enterprises in developing countries: Literature analysis. South African Journal of Economic and Management Sciences, 21 (1), a1756. https://doi.org/10.4102/sajems.v21i1.1756
Vyakarnam, S. (1995). Focus groups: Are they viable in ethics research?' Business Ethics: A European Review, 4 (1), 24-29. https://doi.org/10.1111/j.1467-8608.1995.tb00106.x
Vyakarnam, S., Bailey, A., Myers, A., & Burnett, D. (1997). Towards an understanding of ethical behaviour in small firms. Journal of Business Ethics, 16, 1625–1636. https://doi.org/10.1023/A:1022452502299
Westhead, P., & Storey, D.J. (1996). Management training and small firm performance: Why is the link so weak? International Small Business Journal, 14 (4), 13-24. https://doi.org/10.1177/0266242696144001
Wolinski, S. (2010). Leadership theories. Retrieved June 30, 2017, from http://managementhelp.org/blogs/leadership/ 2010/04/21/leadership-theories/