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Ethical decision-making practices in SMEs: the role of risk acceptance and confidence level

Author

Listed:
  • Mohammad Rashed Hasan Polas
  • Mosab I. Tabash
  • Asghar Afshar Jahanshahi
  • Valentina Gomes Haensel Schmitt

Abstract

The aim of this study is to examine the factors influencing ethical business decision-making on environmental issues, among employees of SMEs. To do so, a survey study was performed with 394 top managers of SMEs in the UAE using a questionnaire, and the data was statistically evaluated using SmartPLS 3.0. The results suggest that prior technology use has significant positive relationships with ethical decision-making and the level of risk acceptance. Furthermore, perceived competitive pressure has significant positive relationships with ethical decision-making and confidence level. In comparison, the level of risk acceptance and confidence level have significant positive relationships with ethical decision-making. Results also demonstrate that the level of risk acceptance mediates the relationship between prior technology use and ethical decision-making. There is also a significant and positive association between perceived competitive pressure and ethical decision-making with a mediating impact of the confidence level.

Suggested Citation

  • Mohammad Rashed Hasan Polas & Mosab I. Tabash & Asghar Afshar Jahanshahi & Valentina Gomes Haensel Schmitt, 2022. "Ethical decision-making practices in SMEs: the role of risk acceptance and confidence level," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 16(4), pages 437-462.
    • Handle: RePEc:ids:ijbget:v:16:y:2022:i:4:p:437-462
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