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| Author: | Colwell, S. Zyphur, M. Schminke, M. |
| Title: | When does ethical code enforcement matter in the inter-organizational context? The moderating role of switching costs |
| Journal: | Journal of Business Ethics
2011 : NOV, VOL. 104:1, p. 47-58 |
| Index terms: | suppliers ethics purchasing supply chain organizational commitment |
| Language: | eng |
| Abstract: | This article suggests that a buyer's choice of supplier is affected by the supplier's enforcement of ethical codes. This observation draws on signaling theory. Drawing on side-bet theory, a hypothesis on how switching costs influence the importance of enforcing ethical codes is made. The model is empirically tested with data from 158 purchasing managers across three manufacturing industries. The results verify the model, although the supplier's enforcement of ethical codes has a small significance when switching suppliers is seen as too costly. |
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