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Article
Publication date: 25 September 2019

Ana Cristina O Siqueira and Benson Honig

Ingenuity can be viewed as the use of creativity to develop innovation within constraints. The authors investigate how entrepreneurial ingenuity is enhanced by self-imposed ethical

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Abstract

Purpose

Ingenuity can be viewed as the use of creativity to develop innovation within constraints. The authors investigate how entrepreneurial ingenuity is enhanced by self-imposed ethical constraints, by using a case study of sustainability-driven technology enterprises in an emerging economy. The authors find that self-imposed ethical constraints can enhance entrepreneurial ingenuity because they encourage entrepreneurs to solve more complex problems as a result of considering the impact of the business on a more diverse set of stakeholders. The aim of this study is to show that while additional resources are normally considered an advantage, a dearth of resources can be a source of competitive advantage leading to ingenuity. By self-imposing ethical constraints, founders increase engagement of stakeholders who shape the firm’s industry toward greater sustainability knowledge.

Design/methodology/approach

The authors used semi-structured interviews which are typically the most important data source in the Gioia methodology because they provide both retrospective and present accounts by individuals experiencing the phenomenon of theoretical interest (Gioia et al., 2012). The authors focused on founders at each enterprise who had sufficient knowledge to speak comprehensively and authoritatively about their organizations. The goals of the semi-structured interview protocol were to focus on the research question, avoid the use of terminology that could lead interviewees in their answers and maintain flexibility to explore spontaneous themes during the interviews.

Findings

The authors examined the influence of entrepreneurial ingenuity on the creation of knowledge in an organization's environment. They defined entrepreneurial ingenuity as a type of organizational ingenuity (Lampel et al., 2014a, 2014b) and by focusing on the role of ethical constraints, examined the conditions under which it is influenced. They emphasized that ethical constraints warrant consideration in the knowledge management process (Rechberg and Syed, 2013) because they can stimulate entrepreneurial ingenuity. The authors also investigated the relevance of ethical constraints for founders of social enterprises in Brazil, an emerging economy of growing interest to knowledge management scholars.

Research limitations/implications

This study brings the following three main contributions. First, by incorporating the scope of social entrepreneurship, the research contributes to the perspective that both ethics and innovation can positively coexist within an organization while contributing to knowledge management creation and success (Borghini, 2005; Schumacher and Wasieleski, 2013). Second, the authors establish ethics as an important type of constraint that can spark ingenuity and help break through the constraints of bounded awareness for knowledge management (Kumar and Chakrabarti, 2012). Third, by highlighting the role of self-imposed ethical constraints, this study helps answer a recent call for research on “entrepreneurial actions that benefit others” (Shepherd, 2015, p. 490) addressing “What are the constraints that disable or obstruct an organization’s normal routines from alleviating human suffering?..It could be less about whether it is good or bad to ignore constraints and more about which constraints are ignored and which are abided by” (Shepherd, 2015, pp. 499, 501, emphasis added).

Practical implications

In this study, the authors show that entrepreneurs facing ethical dilemmas experience a unique cycle of equilibration, essentially throwing customary norms of equilibrium into disequilibrium. Treating ethics as both a lever and a constraint allows a more unique set of problems to be solved through knowledge management and entrepreneurship, so solutions to these problems can themselves become new sustainability-driven businesses.

Social implications

This study opens up several opportunities for future research. The authors conducted a study with five sustainability-driven enterprises from Brazil. New research may benefit from examining a larger number of organizations in other countries to investigate potential environmental differences that affect ingenuity and knowledge management. This study highlights the notion of ethical constraints as enabling mechanisms, and thus self-imposed ethical constraints merit a more systematic consideration as a key additional factor that may inspire disruptive innovation (Christensen, 2013), blue-ocean strategy (Kim and Mauborgne, 2004), as well as value-creation for stakeholders (Tantalo and Priem, 2016).

Originality/value

Resources are critical to both knowledge management and entrepreneurial activity and have been examined from numerous perspectives (Alvarez & Busenitz, 2001; Barney, Wright, & Ketchen, 2001; Moustaghfir and Schiuma, 2013). Entrepreneurs following a creation strategy depend less on accumulating existing knowledge and resources before beginning, and more on forming new knowledge or relationships that do not yet exist. They do this through a process of entrepreneurial trial and error (Alvarez & Barney, 2007, 2010). From a knowledge management perspective, individual knowledge sharing through both experimentation and learning by doing provide consistently high levels of knowledge sharing (Burns, Acar and Datta, 2011). This research emphasizes that constraints, such as limited resources and self-imposed ethical standards, can be a source of advantage leading to ingenuity and knowledge creation.

Details

Journal of Knowledge Management, vol. 23 no. 10
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 1 April 2004

Christopher J. Cowton

Ethical investment funds are retail financial products which explicitly add social or ethical goals or constraints to normal financial criteria in selecting their underlying share…

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Abstract

Ethical investment funds are retail financial products which explicitly add social or ethical goals or constraints to normal financial criteria in selecting their underlying share portfolio. By means of a case study of a UK fund, this paper explores how the relationship between ethical criteria and financial performance might be handled, which is one of the critical issues that arise in putting ethical investment into practice. The research confirms perceptions of a tension between the implementation of an ethical policy and the achievement of good financial performance, and it identifies some of the ways which fund managers might seek to cope with that tension. However, by studying the financial management of an ethical fund in practice, the paper also reveals the ways in which there might be a positive correlation between the financial performance and the ethical effectiveness of a fund, thus providing a complementary perspective to the earlier empirical studies and discussions which have focused on the possibility of ethical concerns undermining financial success.

Details

Accounting, Auditing & Accountability Journal, vol. 17 no. 2
Type: Research Article
ISSN: 0951-3574

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Article
Publication date: 1 December 2001

Viviane M.J. Robinson

While in agreement with the broad coherentist approach of Evers and Lakomski, the position taken here is that coherentism, in itself, does not provide a sufficiently developed…

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Abstract

While in agreement with the broad coherentist approach of Evers and Lakomski, the position taken here is that coherentism, in itself, does not provide a sufficiently developed normative framework to underpin an ethics of educational administration. The coherentist approach to ethics is that the requirements of survival and social problem solving ensure the development of neurally‐based moral prototypes. Following writers such as Clark and Flanagan, argues that the normative resources of coherentism should be enriched by sententially expressed normative standards, and that the approach to such standards taken by virtue ethicists is fruitful. Virtue ethicists reject a rule‐based approach to morality and embrace the idea of moral prototypes. This is consistent with a naturalised epistemology, including the learning of ethical administrative practice.

Details

Journal of Educational Administration, vol. 39 no. 6
Type: Research Article
ISSN: 0957-8234

Keywords

Article
Publication date: 25 October 2022

Hanwen Chen, Siyi Liu, Xin Liu and Jiani Wang

The paper aims to examine the corporate social responsibility (CSR) activity of audit firms.

Abstract

Purpose

The paper aims to examine the corporate social responsibility (CSR) activity of audit firms.

Design/methodology/approach

Using hand-collected data on all Chinese audit firms’ CSR activities from 2007 to 2020, this study constructs two measures to proxy for audit firms’ CSR engagement: a dummy variable to indicate whether an auditor engages in CSR activities in year t and the frequency with which auditors conduct CSR activities in year t. The authors use ordinary least squares regression as a baseline methodology, along with the entropy balancing method and instrumental variable approach to alleviate potential endogeneity concerns.

Findings

The baseline results show that socially responsible audit firms provide higher quality audit services than their counterparts. In particular, the authors find that clients audited by socially responsible audit firms are less likely to receive an aggressively clean opinion. Moreover, the findings suggest that CSR activities related to community and employees are more relevant in improving audit quality compared with those related to other dimensions of CSR. Further analyses show that capital markets and audit clients react positively to audit-firm CSR activity. Audit firms engaging in CSR increase their audit inputs in response to risky clients, as compared with their counterparts. Finally, cross-sectional analyses show that the positive relationship is more pronounced for non-Big 4 and non-industry experts and is attenuated by within-firm geographic dispersion. In terms of client characteristics, the positive effect of audit-firm CSR is stronger when their clients face the higher financial risk or have lower CSR awareness than others. Taken together, these findings are consistent with the ethical view of audit-firm CSR engagement.

Practical implications

The study advances investors’ understanding of audit-firm CSR engagement and helps them evaluate the credibility of audited financial reports. Besides, the findings may also help guide the audit firms to conduct more CSR activities and help guide the audit clients to choose CSR audit firms.

Originality/value

To the best of the authors’ knowledge, this study provides the first large-sample evidence by empirically examining the association between audit-firm CSR activity and audit service performance. Besides, this paper also explores audit-firm CSR activity from two competing perspectives, thereby providing a comprehensive understanding of this issue. Finally, this work responds to the call for more CSR research in emerging markets.

Details

Managerial Auditing Journal, vol. 38 no. 2
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 1 February 1983

Robert Kreitner

Considering the highly publicised ethical crisis in public and private administration recently, the flurry of management‐oriented articles on ethics is an encouraging sign. But in…

Abstract

Considering the highly publicised ethical crisis in public and private administration recently, the flurry of management‐oriented articles on ethics is an encouraging sign. But in their rush to recommend solutions, management theorists have gone off in many different directions. For example, while using the term business ethics, Owens has called for written codes of ethics enforced by appropriate sanctions. Boling, meanwhile, preferring the term management ethics, has suggested democratically developed codes of ethics to reduce emphasis on policing. Finally, Payne has deplored the lack of substantive behavioural research in the area he labels organisation ethics. This somewhat confusing array of terminology aside for a moment, an important remedial option has been ignored or overlook‐ed in these and related treatments. Namely, in the face of encouraging testimonial evidence that business ethics instruction works, the business management classroom affords an excellent opportunity to begin redressing the ethics crisis. Moreover, formal business ethics instruction can help reestablish the administrative importance of such ethically‐grounded values as idealism, compassion, and generosity that researchers have found to be seriously atrophied among business school seniors.

Details

Journal of Management Development, vol. 2 no. 2
Type: Research Article
ISSN: 0262-1711

Book part
Publication date: 18 February 2004

Ranney Ramsey

This article identifies the concept of market value as a standardizing concept that coordinates the actions of market participants in relatively inefficient real estate markets…

Abstract

This article identifies the concept of market value as a standardizing concept that coordinates the actions of market participants in relatively inefficient real estate markets. The paper also identifies different levels of discourse that reflect the organizational/institutional complexity of the real estate appraisal profession. The standardizing effect of market value includes a cognitive and fiduciary component. Using this framework, the paper traces the influence of Richard T. Ely’s institutional economics – and its legacy in the form of the research program of Urban Land Economics at the University of Wisconsin – on the formation and development of the standards of appraisal and ethical practice. This complexity is traced historically from the early part of the 19th century to the formation of the professional organizations and the establishment of their standards, and also through a series of reform efforts in the 1960s and 1980s that were articulated in the academic community. The paper illustrates the manner in which Institutional Economics has been influential in the continuing development of the real estate appraisal profession and suggests reasons for its continuing relevance.

Details

Wisconsin "Government and Business" and the History of Heterodox Economic Thought
Type: Book
ISBN: 978-0-76231-090-6

Article
Publication date: 1 December 1999

Eamon Cahill, Hector Hernández and Felix Bellido

Materials and materials technologies are recognized to be key underpinning and critically enabling areas of R&D. Most industrial sectors and fields of technology application…

Abstract

Materials and materials technologies are recognized to be key underpinning and critically enabling areas of R&D. Most industrial sectors and fields of technology application depend upon them. Materials research can provide new solutions capable of optimizing the application of current technologies, minimizing their negative side effects and reducing production costs. However, the long development time and slow return on materials research investments make industry reluctant to take on the associated risks. This alone suggests that policy initiatives to sustain long‐term research efforts are necessary. This article considers the policy findings of national foresight initiatives in the area of materials and material technologies.

Details

Foresight, vol. 1 no. 6
Type: Research Article
ISSN: 1463-6689

Keywords

Book part
Publication date: 10 June 2015

Alexandra E. MacDougall, Zhanna Bagdasarov, James F. Johnson and Michael D. Mumford

Business ethics provide a potent source of competitive advantage, placing increasing pressure on organizations to create and maintain an ethical workforce. Nonetheless, ethical

Abstract

Business ethics provide a potent source of competitive advantage, placing increasing pressure on organizations to create and maintain an ethical workforce. Nonetheless, ethical breaches continue to permeate corporate life, suggesting that there is something missing from how we conceptualize and institutionalize organizational ethics. The current effort seeks to fill this void in two ways. First, we introduce an extended ethical framework premised on sensemaking in organizations. Within this framework, we suggest that multiple individual, organizational, and societal factors may differentially influence the ethical sensemaking process. Second, we contend that human resource management plays a central role in sustaining workplace ethics and explore the strategies through which human resource personnel can work to foster an ethical culture and spearhead ethics initiatives. Future research directions applicable to scholars in both the ethics and human resources domains are provided.

Details

Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-78560-016-6

Keywords

Article
Publication date: 9 January 2024

Srividhya Raju Sridharan, Sagar Malsane and Govinda Shashikant Bhutada

The purpose of the paper is to analyse the sequence of forces acting as barriers in the usage of drones in the construction industry using interpretive structural modelling (ISM)…

Abstract

Purpose

The purpose of the paper is to analyse the sequence of forces acting as barriers in the usage of drones in the construction industry using interpretive structural modelling (ISM). The usage of drones in the construction industry is brought out phase-wise with the help of literature and live cases. Barriers to the usage of drones in construction and steps to derive the interaction between them are described in detail.

Design/methodology/approach

The extraction of barriers to the usage of drones in construction is done through cases and supported by the literature. The identification of the interaction between the barriers is done through multi-criteria decision models, namely, ISM and Matriced Impacts Croises Multiplication Appliquee a un Classement (MICMAC) and the results are presented in the form of a hierarchical structure. The paper highlights the potential for the usage of drones in every phase of construction across three stages of construction and eight different applications.

Findings

The findings on the interaction between barriers show that technical and research and development-related barriers have a higher driving power, ultimately influencing negativity among stakeholders in drone usage for construction. By analysing interrelationships between barriers, management can frame suitable strategies to adopt drone usage in projects. Awareness about the strength of certain barriers can help management take steps to mitigate the same.

Research limitations/implications

By analysing interrelationships between barriers, management can frame suitable strategies to adopt drone usage in projects. A major limitation is a restriction of the study area to the Indian subcontinent. However, the authors believe that the results can be applied across countries where drone technology is at the nascent stage.

Practical implications

Awareness about the strength of certain barriers can help stakeholders take steps to mitigate the same.

Social implications

The results of this research also give some inputs to the government’s drone policy for wider usage of drones in the construction industry.

Originality/value

To the best of the authors’ knowledge, most studies on drones in construction industry bring out a list various challenges to their adoption. In this study, the authors have gone further to perform a hierarchical sequencing of barriers to drone adoption based on challenges faced in an emerging economy like India.

Details

World Journal of Engineering, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1708-5284

Keywords

Article
Publication date: 1 September 2023

KyuJin Shim, Young Kim and ChihYao Chang

This study aims to propose a model of publics' ethical activism, testing the role of emotional outrage in an extended framework of the previously established STOPS model. Thus…

Abstract

Purpose

This study aims to propose a model of publics' ethical activism, testing the role of emotional outrage in an extended framework of the previously established STOPS model. Thus, this study aims to investigate (1) how ethical perception of a social issue affects situational motivation that leads to participation in public activism, and (2) how emotional outrage plays a role in mediating between situational motivation and activism behaviors.

Design/methodology/approach

The study aims at investigating the mediating role of emotional outrage between situational motivation and activism behaviors, which have not been investigated thoroughly in public relations research. By conducting a national survey with 386 people (N = 386) living in Australia, the study's suggestive model was tested in the context of two ethical issues (e.g. climate change and anti-racism). This study found that people who perceive an ethical issue are likely to be motivated to participate in activism behaviors. Specifically, three situational perceptions (i.e. problem recognition, constraint recognition and involvement recognition) were found to be significant factors affecting situational motivation (SM) in problem solving. A high level of emotional outrage was found to play a mediating role between SM and consequential ethical activism behaviors. The more people feel outraged about an ethical issue, the more likely they will engage in punitive behavior. This study contributes to the theoretical development of public relations by illuminating how situational perceptions lead to emotional outrage that promotes behavioral intentions in an ethical context. This study also suggests that a practitioner should be sought to manage the levels of perceptual factors when setting up a communication plan in response to an ethical public crisis.

Findings

This study found that people who perceive an ethical issue are likely to be motivated to participate in activism behaviors. Specifically, three situational perceptions (i.e. problem recognition, constraint recognition and involvement recognition) were found to be significant factors affecting situational motivation (SM) in problem solving. A high level of emotional outrage was found to play a mediating role between SM and consequential ethical activism behaviors. The more people feel outraged about an ethical issue, the more likely they will engage in punitive behavior.

Research limitations/implications

This study substantiates how three perceptual antecedents may conjointly affect situational motivation. Also, the findings in this study also contribute to theoretical development in predicting ethical activism intentions. Another contribution of this study is to demonstrate the mediating role of emotional outrage between situational motivation and ethical activism. The authors strived to explore individuals' perceptions and its impact on intention to boycott against ethical problematic social issues. It should be considered that this study used a hypothetical and manipulated situation where respondents are exposed to the visual stimuli that focus on the moral problems that those specific issues have raised.

Practical implications

First, as problem recognition plays a prime mover role in the overall problem-solving process in an ethical context, organizations should reduce individual's ethical problem recognition. When setting up a communication plan, an organization should showcase their positive role in addressing the ethical problems (e.g. to show Adani's commitment to indigenous people and efforts to protect the environment). The response strategy should be effective enough to create an “ethical dilemma,” which refers to a situation in which one has a difficult choice to make between two ethical options.

Originality/value

This study contributes to theoretical development of public relations by illuminating how situational perceptions lead to emotional outrage that promotes behavioral intentions in an ethical context. This study also suggests that a practitioner should be sought to manage the levels of perceptual factors when setting up a communication plan in response to an ethical public crisis.

Details

Corporate Communications: An International Journal, vol. 28 no. 6
Type: Research Article
ISSN: 1356-3289

Keywords

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