Do environmental and ethical aspects of interfunctional coordination lead to smaller business performance?
Abstract
The paper deals with interfunctional coordination (IFC) from ethical and environmental point of view. It will be interesting to know if the parts of IFC connected with ethical and environmental aspects have positive or negative influence on business performance. Data was gained from 60 SMEs producing electrical equipment and electronic components in the Czech Republic. Survey questionnaire and critical discussion with the literature were used. Kaiser-Meyer-Olkin (KMO) test and Bartett’s sphericity test were applied. For analysing the influence of ethical and environmental aspect on business performance Spearman’s rank correlation was used. The results show: (1) a positive relation between ethical aspects and business performance, (2) no positive relation between implementation of environmental aspects and business performance, and (3) no difference in results in marketing business performance and financial business performance. The results can suggest that a preference towards ethical decisions and behaviour leads to a higher business performance and by contraries, environmental aspects leads to smaller business performance. The collected data shows that environmental and ethical decisions of managers in the Czech Republic can differ from environmental and ethical decisions of managers in different countries.
Keyword : ethical aspects, environmental aspects, interfunctional coordination (IFC), business performance, SME
How to Cite
Tomášková, E., & Kaňovská, L. (2019). Do environmental and ethical aspects of interfunctional coordination lead to smaller business performance?. Technological and Economic Development of Economy, 25(6), 1282-1292. https://doi.org/10.3846/tede.2019.11245
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Manurung, D., Suhartadi, A. R., & Saefudin, N. (2015). The influence of organizational commitment on employee fraud with effectiveness of internal control and organizational justice as a moderating variable. Procedia – Social and Behavioral Sciences, 211, 1064-1072. https://doi.org/10.1016/j.sbspro.2015.11.142
Markovic, S., Iglesias, O., Singh, J. J., & Sierra, V. (2018). How does the perceived ethicality of corporate services brands influence loyalty and positive word-of-mouth? Analyzing the roles of empathy, affective commitment, and perceived quality. Journal of Business Ethics, 148(4), 721-740. https://doi.org/10.1007/s10551-015-2985-6
Nie, P. Y., & Wang, C. (2019). An analysis of cost-reduction innovation under capacity constrained inputs. Applied Economics, 51(6), 564-576. https://doi.org/10.1080/00036846.2018.1497850
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Porter, M. (2011). The big idea: Creating shared value. Harvard Business Review, January-February, 62-77.
Río, P., Romero-Jordán, D., & Peñasco, C. (2017). Analysing firm-specific and type-specific determinants of eco-innovation. Journal Technological and Economic Development of Economy, 23(2), 270295. https://doi.org/10.3846/20294913.2015.1072749
Schmidheiny, S. (1992). Changing course. Cambridge, MA: MIT Press.
Sedziuviene, N., & Vveinhardt, J. (2010). Competitiveness and innovations: Role of knowledge management at a knowledge organization. Inzinerine Ekonomika – Ingineering Economics, 21(5), 525-536.
Sousa, C. M. P., & Lengler, J. (2011). Examining the determinants of interfunctional coordination and export performance: An investigation of Brazilian exporters. Advances in International Marketing, 21(1), 189-206. https://doi.org/10.1108/S1474-7979(2011)0000021011
Wang, C., Nie, P. Y., & Meng, Y. (2018). Duopoly competition with corporate social responsibility. Australian Economic Papers, 57(3), 327-345. https://doi.org/10.1111/1467-8454.12119
Weaver, G. G., Trevino, L. K., & Cochran, P. L. (1999). Corporate programs as control systems: Influences of executive commitment and environmental factors. Academy of Management Journal, 42(1), 41-57. https://doi.org/10.2307/256873
Wong, H. K., & Ellis, P. D. (2007). Is market orientation affected by the product life cycle? Journal of World Business, 42(2), 145-156. https://doi.org/10.1016/j.jwb.2007.02.001
Barata, J. M., & Fontainha, E. (2017). Determinants of innovation in European construction firms. Journal Technological and Economic Development of Economy, 23(6), 915-936. https://doi.org/10.3846/20294913.2016.1212437
Berrone, P., Surroca, J., & Tribó, J. A. (2007). Corporate ethical identity as a determinant of firm performance: A test of the mediating role of stakeholder satisfaction. Journal of Business Ethics, 76(1), 35-53. https://doi.org/10.1007/s10551-006-9276-1
Belak, J., & Milfelner, B. (2011). Informal and formal institutional measures of business ethics implementation at the different stages of enterprise life cycle. Acta Polytech Hungary, 8(1), 105-122.
Bigné, E. M., Moliner, A., & Sanchez, J. (2003). Perceived quality and satisfaction in multi service organizations: The case of Spanish public services. The Journal of Services Marketing, 17(4), 420-442. https://doi.org/10.1108/08876040310482801
Chen, Y. H., Nie, P. Y., Wang, C., & Meng, Y. (2019). Effects of corporate social responsibility considering emission restrictions. Energy Strategy Reviews, 24, 121-131. https://doi.org/10.1016/j.esr.2019.02.002
Cheng, M.-Y., & Wang, L. (2015). The mediating effect of ethical climate on the relationship between paternalistic leadership and team identification: A team-level analysis in the Chinese context. Journal of Business Ethics, 129(3), 639-654. https://doi.org/10.1007/s10551-014-2189-5
Christman, P. (2000). Effects of “best practices”of environmental management on cost advantage: The role of complementary assets. Academy of Management Journal, 43(4), 663-680. https://doi.org/10.2307/1556360
Chryssides, G. D., & Kaler, H. J. (1993). An introduction to business ethics. London: Chapman and Hall.
Collins, D. (2010). Designing ethical organizations for spiritual growth and superior performance: An organization systems approach. Journal of Management, Spirituality and Religion, 7(2), 95-117. https://doi.org/10.1080/14766081003746414
Flammer, C. (2013). Corporate social responsibility and shareholder reaction: The environmental awareness of investors. Academy of Management Journal, 56(3), 758-781. https://doi.org/10.5465/amj.2011.0744
Flammer, C. (2015). Does corporate social responsibility lead to superior financial performance? A regression discontinuity approach. Management Science, 61(11), 2549-2568. https://doi.org/10.1287/mnsc.2014.2038
Green, C. F. (2004). Business ethics in banking. Journal of Business Ethics, 8(8), 631-634. https://doi.org/10.1007/BF00383031
Harrison, D. S., & Lewellyn, P. G. (2004). Russian management training programs: Do corporate responsibility topics have a place? Management Accounting Quarterly, 5(4), 25-36.
Hašková, S. (2017) Holistic assessment and ethical disputation on a new trend in solid biofuels. Science and Engineering Ethics, 23(2), 509-519. https://doi.org/10.1007/s11948-016-9790-1
Hernández-Espallardo, M., & Delgado-Ballester, E. (2009). Product innovation in small manufacturers, market orientation and the industry’s five competitive forces: Empirical evidence from Spain. European Journal of Innovation Management, 12(4), 470-491. https://doi.org/10.1108/14601060910996927
Itani, O., & Inyang, A. (2015). The effects of empathy and listening of salespeople on relationship quality in the retail banking industry. International Journal of Bank Marketing, 33(6), 692-716. https://doi.org/10.1108/IJBM-06-2014-0076
Kim, K. H., Kim, M., & Qian, C. (2018). Effects of corporate social responsibility on corporate financial performance: A competitive-action perspective. Journal of Management, 44(3), 1097-1118. https://doi.org/10.1177/0149206315602530
Klapilová Krbová, P. (2016). Shopping behaviour of generation Y: A comparison of Czech Republic and Slovakia. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 64(2), 617-626. https://doi.org/10.11118/actaun201664020617
Mardoyan, A., & Braun, P. (2015). Analysis of Czech subsidies for solid biofuels. International Journal of Green Energy, 12(4), 405-408. https://doi.org/10.1080/15435075.2013.841163
Maroušek, J. (2015). 4. Managing environmental innovation: Case study on biorefinery concept. Revista Técnica de la Facultad de Ingeniería Universidad del Zulia, 38(3).
Maroušek, J., Hašková, S., Zeman, R., & Vaníčková, R. (2015). Managerial preferences in relation to financial indicators regarding the mitigation of global change. Science and Engineering Ethics, 21(1), 203-207. https://doi.org/10.1007/s11948-014-9531-2
Maroušek, J., Vochozka, M., Plachý, J., & Žák, J. (2017). Glory and misery of biochar. Clean Technologies and Environmental Policy, 19(2), 311-317. https://doi.org/10.1007/s10098-016-1284-y
Manurung, D., Suhartadi, A. R., & Saefudin, N. (2015). The influence of organizational commitment on employee fraud with effectiveness of internal control and organizational justice as a moderating variable. Procedia – Social and Behavioral Sciences, 211, 1064-1072. https://doi.org/10.1016/j.sbspro.2015.11.142
Markovic, S., Iglesias, O., Singh, J. J., & Sierra, V. (2018). How does the perceived ethicality of corporate services brands influence loyalty and positive word-of-mouth? Analyzing the roles of empathy, affective commitment, and perceived quality. Journal of Business Ethics, 148(4), 721-740. https://doi.org/10.1007/s10551-015-2985-6
Nie, P. Y., & Wang, C. (2019). An analysis of cost-reduction innovation under capacity constrained inputs. Applied Economics, 51(6), 564-576. https://doi.org/10.1080/00036846.2018.1497850
Ogbari, M. E., Oke, A. O., Ibukunoluwa, A. A., Ajagbe, M. A., & Ologbo, A. C. (2016). Entrepreneurship and business ethics: Implications on corporate performance. International Journal of Economics and Financial Issues, 6(S3), 50-58.
Oh, W. Y., Chang, Y. K., & Kim, T. Y. (2018). Complementary or substitutive effects? Corporate governance mechanisms and corporate social responsibility. Journal of Management, 44(7), 2716-2739. https://doi.org/10.1177/0149206316653804
Porter, M. (2011). The big idea: Creating shared value. Harvard Business Review, January-February, 62-77.
Río, P., Romero-Jordán, D., & Peñasco, C. (2017). Analysing firm-specific and type-specific determinants of eco-innovation. Journal Technological and Economic Development of Economy, 23(2), 270295. https://doi.org/10.3846/20294913.2015.1072749
Schmidheiny, S. (1992). Changing course. Cambridge, MA: MIT Press.
Sedziuviene, N., & Vveinhardt, J. (2010). Competitiveness and innovations: Role of knowledge management at a knowledge organization. Inzinerine Ekonomika – Ingineering Economics, 21(5), 525-536.
Sousa, C. M. P., & Lengler, J. (2011). Examining the determinants of interfunctional coordination and export performance: An investigation of Brazilian exporters. Advances in International Marketing, 21(1), 189-206. https://doi.org/10.1108/S1474-7979(2011)0000021011
Wang, C., Nie, P. Y., & Meng, Y. (2018). Duopoly competition with corporate social responsibility. Australian Economic Papers, 57(3), 327-345. https://doi.org/10.1111/1467-8454.12119
Weaver, G. G., Trevino, L. K., & Cochran, P. L. (1999). Corporate programs as control systems: Influences of executive commitment and environmental factors. Academy of Management Journal, 42(1), 41-57. https://doi.org/10.2307/256873
Wong, H. K., & Ellis, P. D. (2007). Is market orientation affected by the product life cycle? Journal of World Business, 42(2), 145-156. https://doi.org/10.1016/j.jwb.2007.02.001