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Journal of Business Ethics

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31-01-2017 | Original Paper

The Respective Effects of Virtues and Inter-organizational Management Control Systems on Relationship Quality and Performance: Virtues Win

Authors: Carole Donada, Caroline Mothe, Gwenaëlle Nogatchewsky, Gisele de Campos Ribeiro

Published in: Journal of Business Ethics | Issue 1/2019

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Abstract

In this study, we evaluate how individual virtues and inter-organizational management control systems (IOMCS) influence buyer–supplier performance through relationship quality. Results from a sample of 232 firms confirm that virtues and IOMCS relate positively to relationship quality and performance, respectively. However, IOMCS lose their positive influence on relationship quality when considered along with virtues. That is, when both variables enter the regression model simultaneously, virtues win. This interesting finding has particular resonance at a time when research on ethics still needs to reinforce its positive effects on the practice of management.

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Small (2013) provides a more comprehensive analysis of Cicero’s conception of virtues.

For many philosophers, prudence is included in the virtue of “wisdom” [σοφία], which implies full perception and intelligent development of what is true (Small 2013).

Thesame received financial support from F2i (Fund for Innovation in Industry), and the data were collected by an independent consultancy firm specializing in professional ethics (Socrates http://socratesonline.com/).

We excluded micro firms (less than 10 employees) from the European Union’s 2003/361/CE recommendation.

Many companies provide both products and services, so it is difficult to categorize them clearly as one or the other. Survey respondents may have been confused about how they should respond for their organizations, which would compromise the accuracy of the data for this control variable. However, the results show that, for service firms, the link between IOMCS and relationship quality and performance is higher, which corroborates previous studies (e.g., Flikkema et al. 2007; Gallouj and Weinstein 1997) that emphasize the importance of buyer–supplier relationships for such activities.

Conditional indices values greater than 30 and correlation values greater than .9 indicate multicollinearity problems (Hair et al. 2010). Even if we were to proceed to the second step using a threshold value of 15 (instead of 30) for the condition index, we would select only one coefficient loading higher than .9 (the intercept).

We thank an anonymous reviewer for this suggestion.

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Title: The Respective Effects of Virtues and Inter-organizational Management Control Systems on Relationship Quality and Performance: Virtues Win
Authors: Carole Donada
Caroline Mothe
Gwenaëlle Nogatchewsky
Gisele de Campos Ribeiro
Publication date: 31-01-2017
Publisher: Springer Netherlands
Published in: Journal of Business Ethics / Issue 1/2019
Print ISSN: 0167-4544
Electronic ISSN: 1573-0697
DOI: https://doi.org/10.1007/s10551-016-3418-x

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