When does Ethical Code Enforcement Matter in the Inter-Organizational Context? The Moderating Role of Switching Costs
Abbreviated Journal Title
J. Bus. Ethics
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
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 of Business Ethics
"When does Ethical Code Enforcement Matter in the Inter-Organizational Context? The Moderating Role of Switching Costs" (2011). Faculty Bibliography 2010s. 1201.