When does Ethical Code Enforcement Matter in the Inter-Organizational Context? The Moderating Role of Switching Costs

    Authors

    S. R. Colwell; M. J. Zyphur;M. Schminke

    Comments

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    Abbreviated Journal Title

    J. Bus. Ethics

    Keywords

    Ethical code enforcement; Switching costs; Commitment; Inter-organizational relationships; SIDE-BET THEORY; METHOD VARIANCE; SOCIAL-RESPONSIBILITY; ORGANIZATIONAL; RESEARCH; EMPIRICAL-ANALYSIS; COMMITMENT; PERFORMANCE; DISTRIBUTOR; INDUSTRY; POLICY; Business; Ethics

    Abstract

    Drawing on signaling theory, we suggest that a supplier's enforcement of ethical codes sends signals about the supplier that affect a buyer's decision to continue their commitment to the supplier. We then draw on side-bet theory to hypothesize how switching costs influence the importance of a supplier's enforcement of ethical codes in predicting a buyer's continuance commitment to a supplier. We empirically test our model with data from 158 purchasing managers across three manufacturing industries. Results confirm the connection between ethical code enforcement and continuance commitment, but suggest that a supplier's enforcement of ethical codes matter less when switching suppliers is perceived as too costly.

    Journal Title

    Journal of Business Ethics

    Volume

    104

    Issue/Number

    1

    Publication Date

    1-1-2011

    Document Type

    Article

    Language

    English

    First Page

    47

    Last Page

    58

    WOS Identifier

    WOS:000296087400003

    ISSN

    0167-4544

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