The criticality of ethical practices in B2B service delivery is increasingly recognised for its substantial impact on firm performance. However, there remains a gap in understanding how ethicality at managerial and staff levels translates into tangible business outcomes in B2B contexts. This study aims to bridge this gap, focusing on the impact of ethicality on perceived service delivery performance and firm performance, mainly through ethical leadership and climate lenses. The research objectives include unravelling the dynamics between staff-level ethical perceptions and (...) managerial-level ethical practices and their collective impact on service delivery and firm performance. Employing a multilevel data collection and analytical framework, the study collected data from 5500 employees and 110 managers, providing a comprehensive view of ethical influences across different organisational strata. This approach facilitated a nuanced examination of how ethical perceptions and behaviours permeate through the organisational hierarchy. Major findings reveal that individual-level ethical perceptions enhance service delivery through positive citizenship behaviour of the employees and reduced opportunism. A culture of shared ethical values, reinforced by robust ethical leadership and a supportive climate, significantly bolstered firm performance at the organisational level. These insights contribute significantly to B2B theory by elucidating the mechanisms through which ethicality at various levels influences firm outcomes. The study underscores the importance of fostering an ethical culture at the individual level and holistically across the organisation to enhance service delivery and achieve superior firm performance. (shrink)

In the past few decades, a growth in ethical consumerism has led brands to increasingly develop conscientiousness and depict ethical image at a corporate level. However, most of the research studying business ethics in the field of corporate brand management is either conceptual or has been empirically conducted in relation to goods/products contexts. This is surprising because corporate brands are more relevant in services contexts, because of the distinct nature of services and the key role that employees have in the (...) services sector. Accordingly, this article aims at empirically examining the effects of customer perceived ethicality in the context of corporate services brands. Based on data collected for eight service categories using a panel of 2179 customers, the hypothesized structural model is tested using path analysis. The results show that, in addition to a direct effect, customer perceived ethicality has a positive and indirect effect on customer loyalty, through the mediators of customer affective commitment and customer perceived quality. Further, employee empathy positively influences the impact of customer perceived ethicality on customer affective commitment, and customer loyalty positively impacts customer positive word-of-mouth. The first implication of these results is that corporate brand strategy needs to be aligned with human resources policies and practices if brands want to turn ethical strategies into employee behavior. Second, corporate brands should build more authentic communications grounded in their ethical beliefs and supported by evidence from actual employees. (shrink)

PurposeGiven the digital transformation of service businesses by providing online food services and the influence of online reviews on consumers’ purchasing decisions, this study examines how service recovery attributes in different stages influence relationship marketing strategies, i.e., relationship quality and customer loyalty after service failure. This study is built upon a revised service recovery cycle model by accounting for three stages and their corresponding attributes; whereon a conceptual stage model of service recovery is proposed. This conceptual stage model incorporates stages (...) of service recovery, their respective attributes, and how they influence relationship marketing strategies.Design/methodology/approachAn online marketing company was employed for data collection in 2019, which resulted in 301 valid responses. A Structural Equation Model was conducted with all the data to test the relationships between the constructs. The individual measurement model was tested using the Exploratory Factor Analysis and Confirmatory Factor Analysis. A structural model was estimated using AMOS to test all the hypotheses.FindingsThe findings demonstrate that the attributes paired with the first two stages of service recovery can significantly influence consumer loyalty in a positive state. The findings also manifest the intermediary role that relationship quality has played in the association of service recovery and consumer loyalty, which implies that the food delivery businesses could attain a more comprehended relationship quality with consumers through active and timely compensatory service recovery consumer loyalty to the food businesses.Originality/valueThis study examines how these different stages of the service recovery cycle influence the decision-making of relationship marketing strategies on the prerequisite of service failure. This study aspires to expand the service recovery research by objectifying a conceptual stage model of service recovery, incorporating stages’ recovery attributes and how these recovery attributes reciprocally influence relationship quality and customer loyalty. (shrink)

The objective of this study was to assess whether, and how, the attitudes towards business ethics of former South African business students have changed between the early 1990s and 2010. The study used the Attitudes Toward Business Ethics Questionnaire and applied a comparative analysis between leading business schools in South Africa. The findings of this study found a significant change in attitudes based on a set time frame, with a trend towards stronger opinions on business ethics and espoused values. Eleven (...) factors came out as fundamental, although they were less able to explain the variation in the attitudes than the previous study. A significant change in the rankings of variables was noted and indicated a shift in attitude toward a teleological moral philosophy as well as utilitarian motives. This shows a clear trend towards compliance-based ethics, which can be explained by the proliferation of business legislation and regulation in the wake of recent corporate governance failures and the subsequent global financial crisis. (shrink)

The article reports the findings of a study conducted among 387 consumers regarding their perceptions of the unethicality of business practices of firms and how these affect their response behavior, in terms of trust, satisfaction, and loyalty. The study confirmed that high levels of perceived corporate unethicality decrease consumer trust. This in turn reduces consumer satisfaction, which ultimately has negative effects on customer loyalty. It was also revealed that, although both consumer gender and urbanity have a moderating effect on the (...) link between perceived unethicality and trust, the age group and level of education of the consumer did not exhibit such an effect. With regard to consumer cultural characteristics, both high uncertainty avoidance and low individualism were found to increase the negative impact of business unethicality on trust, as opposed to power distance and masculinity that did not have any moderating effect on this relationship. Implications for managers are extracted from the study findings, as well as directions for future research. (shrink)

Recent events and popularized stereotypes call into question the ethics of salesperson behaviors. Although prior research demonstrates that salespeople’s emotional exhaustion can have negative consequences for several job outcomes, little is known about the factors that can mitigate such relationships—particularly the relationship between emotional exhaustion and ethical behavior. To remedy this knowledge gap, we draw from self-control theory to propose a novel theoretical framework and develop hypotheses. These hypotheses are tested on a unique dataset consisting of survey data collected from (...) 123 matched business-to-business salesperson–manager dyads. The findings reveal that emotional exhaustion is negatively associated with sales performance, emotional exhaustion is negatively associated with ethical behaviors, ethical behaviors are positively associated with sales performance, ethical behaviors mediate emotional exhaustion’s negative effect on sales performance, perceived supervisor support attenuates the negative association between emotional exhaustion and ethical behaviors, and contrary to expectations, grit strengthens the negative association between emotional exhaustion and ethical behaviors. As we show here, perceived supervisor support may attenuate the undesirable effects of emotional exhaustion on ethical behaviors and sales performance. The article’s broader contribution thus lies in its suggestion that managers pay special attention to these factors. Moreover, factors such as grit can have unexpected and undesirable influences; therefore, we draw attention to the importance of scrutinizing these interactions, even when the factors involved are almost universally touted as beneficial. Theoretical and practical implications of the research are discussed. (shrink)

While consumer motivation to maintain a relationship with a retailer is a function of personal idiosyncratic characteristics, specific perceptions of retailers may play a role in influencing receptivity to relationship maintenance. This study integrates relationship marketing tactics and corporate associates into a model of consumer ethical purchasing behavior that improves the relationship between sellers and buyers. Results show social benefits, special treatment benefits, CSR, and service quality have direct and indirect impact on ethically questionable consumer behaviors in retailing. This study (...) also modifies the consumer ethics scale of Muncy and Vitell for the East Asian market with good reliability and validity in order to measure ethically questionable consumption behaviors in retailing. Finally, some theoretical contribution and practical implications are discussed. (shrink)

This conceptual article applies the customer value (CV) concept in the context of green marketing aiming to provide insights on the factors that motivate and/or hinder the development of consumer–green brand relationships. The article draws upon existing literature on the streams of CV, relationship marketing and environmental behaviour and synthesises relevant findings to propose an integrated conceptual framework entailing all identified types of value and cost, psychographic characteristics, as well as dimensions of relationship quality (RQ) and loyalty. Furthermore, it addresses (...) existing questions on the links among constructs and proposes several relationships that may lead to a better understanding of consumer behaviour towards green brands. Through the here-proposed conceptual model, the article initiates the process of empirically examining the consumer adoption of and relationship development with green brands. The CV framework adopted here may provide practitioners with knowledge on the value and sacrifice factors, as well as the dimensions of RQ that are the most important in targeting green consumers and designing relationship marketing strategies. The article also fulfils an identified gap in the literature, as it is the first that brings together and applies research findings from CV and relationship marketing fields in the green marketing context and proposes an integrated approach to understanding consumer–green brands relationships. (shrink)

Management scholars have paid close attention to the construct of organizational or corporate reputation, particularly in the applied business ethics and corporate social responsibility fields. Extant research demonstrates that CR is one of the key mediators between CSR and important organizational outcomes, which ultimately improve organizational performance. Yet, hitherto the research focused on CR construct has been plagued by multiple definitions, conflicting conceptualizations, and unclear operationalizations. The purpose of this article is to provide theoretical ground for positioning of CR as (...) an assessment construct that is modeled as a second-order factor affecting individual first-order dimensions, and to provide methodological and empirical support toward such conceptualization. We assert that intangible, socially complex, and causally ambiguous CR can be accurately estimated through its individual measurable dimensions. Using survey data from Peru, we empirically test the hypothesized second-order reflective model within a hierarchy of nested and non-nested models, and compare its model fit and predictive power with alternative conceptualizations. Modeling CR as a second-order reflective construct relies on a set of theoretical propositions and yields several methodological advantages, including strong conceptual interpretability and parsimony when tested within a nomological context. We explicitly demonstrate positive organizational outcomes of CR: customer trust, corporate identification, in-role behavior, and extra-role behavior. Then, we demonstrate that the shorter scales of CR can be used as a good proxy for the full construct measure. The paper concludes by highlighting theoretical insights, and methodological and managerial implications of the findings. (shrink)

This research investigates the influence that consumers’ perceptions of retail business ethics have on their responses when retailers either create social discount spaces or do not. Using scenarios to imply these social practices and structural equation modeling to test the hypotheses among a sample of 689 respondents, the authors find that consumers’ perceptions of retail business ethics have positive effects on consumer loyalty, both directly and through consumer trust, as well as positive, strong influences on the retailer’s corporate social responsibility (...) and corporate reputation. Furthermore, consumers’ perceptions of retail business ethics exert a stronger effect on consumer trust in integrated social discount spaces, though social discount practices do not affect the link between such perceptions and loyalty. Compared with when the retailer does not offer discount space, collaborative and integrated social discount spaces have weaker effects on trust and loyalty to the retailer. These findings have several notable theoretical and practical implications. (shrink)

The value of a company’s ethical reputation has become a focal point for management researchers. We seek to join this conversation and extend the research centered on a firm’s ethical reputation. We accomplish this by shifting our focus away from its impact on external stakeholders to its impact on internal stakeholders. To this end, we rely on signaling theory to explain why a firm’s ethical reputation matters to its employees in an effort to bridge the macro–micro research gap. Across two (...) studies, we propose and demonstrate that a firm’s ethical reputation impacts employee subjective career success in form of career opportunities and work–life balance. Given our signaling theory framework, we also identify and explain when two industry-level characteristics operate as boundary conditions that distort a firm’s ethical reputation signaling properties. Specifically, the results demonstrate that a firm’s ethical reputation is positively related to employees’ perceptions of career opportunities and work–life balance. The results of our studies also demonstrate that the relatively high levels of industry competition and industry regulation weaken the positive impact of a firm’s ethical reputation on career opportunities and work–life balance. Theoretical and practical implications are discussed. (shrink)

This study utilizes hierarchical regression analysis to explore how environmental management systems influence financial performance through customer satisfaction and customer loyalty, and the moderating effects of switching cost. The originality of the present research is to unpack the “black box” through which a firm can profit from EMSs. The empirical results indicate that EMSs have positive and significant impacts on customer satisfaction, customer loyalty, and financial performance. In addition, switching cost negatively and significantly moderates the relationship between EMSs and customer (...) satisfaction, but does not significantly moderates the relationship between EMSs and customer loyalty. The results also demonstrate that customer satisfaction and customer loyalty partially mediate the relationship between EMSs and financial performance. Our findings highlight that customer satisfaction, customer loyalty, and switching cost play important roles for a firm to profit from EMSs. (shrink)