6533b7d9fe1ef96bd126c357

RESEARCH PRODUCT

Ethical Behavior and Organizational Innovation: Analysis of Small and Medium-Sized Enterprises in Latvia

Ricardo Martín FloresMadara Apsalone

subject

competitivenessOrganizational innovationComputingMilieux_THECOMPUTINGPROFESSIONorganizational cultureHF5001-6182ethical behavior05 social sciencessmall and medium-sized enterprisesOrganizational cultureFace (sociological concept)Ethical behaviorCompetitive advantageEconomics as a scienceWork (electrical)organizational innovation0502 economics and businessBusinessOrganizational structureBusiness050207 economicsBusiness ethicsHB71-74050203 business & managementIndustrial organization

description

Abstract Innovations can provide small and medium-sized enterprises (SMEs) a significant competitive advantage considering the ambiguous business environment. SMEs may face lower capacity and more constrained funding for long-term investments, however, understanding innovation in a broader sense and looking into organizational structures, behaviors and processes, SMEs have an opportunity to become more competitive. This study analyzes the impact of ethical behavior as a part of an organizational culture on organizational innovation performance in SMEs. Six hundred SMEs in Latvia were surveyed to assess whether employees follow the principles of business ethics in their work and what is the organizational innovation performance in these enterprises. We found that more ethical behavior leads to better organizational innovation performance, and that the size of enterprise is the most significant factor affecting this relationship. The study proposes insights that contribute to theoretical and practical discussions on fostering small businesses innovation in small economies.

yearjournalcountryeditionlanguage
2018-04-01Economics and Business
https://doi.org/10.2478/eb-2018-0006