IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v198y2025i3d10.1007_s10551-024-05810-z.html
   My bibliography  Save this article

Ethicality in B2B Service Delivery: Examining the Impact of Individual and Organisational Ethics on Firm Performance Through Ethical Leadership and Climate

Author

Listed:
  • S. Sreejesh

    (Indian Institute of Management Kozhikode (IIMK))

  • Subhadip Roy

    (Indian Institute of Management Ahmedabad (IIMA))

Abstract

The criticality of ethical practices in B2B service delivery is increasingly recognised for its substantial impact on firm performance. However, there remains a gap in understanding how ethicality at managerial and staff levels translates into tangible business outcomes in B2B contexts. This study aims to bridge this gap, focusing on the impact of ethicality on perceived service delivery performance and firm performance, mainly through ethical leadership and climate lenses. The research objectives include unravelling the dynamics between staff-level ethical perceptions and managerial-level ethical practices and their collective impact on service delivery and firm performance. Employing a multilevel data collection and analytical framework, the study collected data from 5500 employees and 110 managers, providing a comprehensive view of ethical influences across different organisational strata. This approach facilitated a nuanced examination of how ethical perceptions and behaviours permeate through the organisational hierarchy. Major findings reveal that individual-level ethical perceptions enhance service delivery through positive citizenship behaviour of the employees and reduced opportunism. A culture of shared ethical values, reinforced by robust ethical leadership and a supportive climate, significantly bolstered firm performance at the organisational level. These insights contribute significantly to B2B theory by elucidating the mechanisms through which ethicality at various levels influences firm outcomes. The study underscores the importance of fostering an ethical culture at the individual level and holistically across the organisation to enhance service delivery and achieve superior firm performance.

Suggested Citation

  • S. Sreejesh & Subhadip Roy, 2025. "Ethicality in B2B Service Delivery: Examining the Impact of Individual and Organisational Ethics on Firm Performance Through Ethical Leadership and Climate," Journal of Business Ethics, Springer, vol. 198(3), pages 695-714, May.
    • Handle: RePEc:kap:jbuset:v:198:y:2025:i:3:d:10.1007_s10551-024-05810-z
    DOI: 10.1007/s10551-024-05810-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10551-024-05810-z
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-024-05810-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. C Zhang & S T Cavusgil & A S Roath, 2003. "Manufacturer governance of foreign distributor relationships: do relational norms enhance competitiveness in the export market?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 550-566, November.
    2. Robert Peterson & Gerald Albaum & Dwight Merunka & Jose Munuera & Scott Smith, 2010. "Effects of Nationality, Gender, and Religiosity on Business-Related Ethicality," Journal of Business Ethics, Springer, vol. 96(4), pages 573-587, November.
    3. Yi-Ching Hsieh & Hung-Chang Chiu & Yun-Chia Tang & Wei-Yun Lin, 2018. "Does Raising Value Co-creation Increase All Customers’ Happiness?," Journal of Business Ethics, Springer, vol. 152(4), pages 1053-1067, November.
    4. Katja Brunk, 2012. "Un/ethical Company and Brand Perceptions: Conceptualising and Operationalising Consumer Meanings," Journal of Business Ethics, Springer, vol. 111(4), pages 551-565, December.
    5. Yuhyung Shin, 2012. "CEO Ethical Leadership, Ethical Climate, Climate Strength, and Collective Organizational Citizenship Behavior," Journal of Business Ethics, Springer, vol. 108(3), pages 299-312, July.
    6. Willy Bolander & William J. Zahn & Terry W. Loe & Melissa Clark, 2017. "Managing New Salespeople’s Ethical Behaviors during Repetitive Failures: When Trying to Help Actually Hurts," Journal of Business Ethics, Springer, vol. 144(3), pages 519-532, September.
    7. Ozgur Demirtas & A. Akdogan, 2015. "The Effect of Ethical Leadership Behavior on Ethical Climate, Turnover Intention, and Affective Commitment," Journal of Business Ethics, Springer, vol. 130(1), pages 59-67, August.
    8. David Mayer & Maribeth Kuenzi & Rebecca Greenbaum, 2010. "Examining the Link Between Ethical Leadership and Employee Misconduct: The Mediating Role of Ethical Climate," Journal of Business Ethics, Springer, vol. 95(1), pages 7-16, September.
    9. Darren D. Lee & Robert W. Faff & Kim Langfield-Smith, 2009. "Revisiting the Vexing Question: Does Superior Corporate Social Performance Lead to Improved Financial Performance?," Australian Journal of Management, Australian School of Business, vol. 34(1), pages 21-49, June.
    10. Kristof De Wulf & Patrick Van Kenhove & Sarah Steenhaut, 2003. "The relationship between consumers unethical behavior and customer loyalty in a retail environment," Vlerick Leuven Gent Management School Working Paper Series 2003-17, Vlerick Leuven Gent Management School.
    11. Leslier Valenzuela & Jay Mulki & Jorge Jaramillo, 2010. "Impact of Customer Orientation, Inducements and Ethics on Loyalty to the Firm: Customers’ Perspective," Journal of Business Ethics, Springer, vol. 93(2), pages 277-291, May.
    12. Jay Mulki & Jorge Jaramillo & William Locander, 2009. "Critical Role of Leadership on Ethical Climate and Salesperson Behaviors," Journal of Business Ethics, Springer, vol. 86(2), pages 125-141, May.
    13. S. Steenhaut & P. Van Kenhove, 2006. "The Mediating Role of Anticipated Guilt in Consumers’ Ethical Decision-Making," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 06/370, Ghent University, Faculty of Economics and Business Administration.
    14. Robert Peterson & Gerald Albaum & Dwight Merunka & Jose Luis Munuera & Scott Smith, 2010. "Effects of Nationality, Gender, and Religiosity on Business-Related Ethicality," Post-Print hal-01822303, HAL.
    15. Nigel Piercy & Nikala Lane, 2007. "Ethical and Moral Dilemmas Associated with Strategic Relationships between Business-to-Business Buyers and Sellers," Journal of Business Ethics, Springer, vol. 72(1), pages 87-102, April.
    16. Sarah Steenhaut & Patrick Kenhove, 2006. "The Mediating Role of Anticipated Guilt in Consumers’ Ethical Decision-Making," Journal of Business Ethics, Springer, vol. 69(3), pages 269-288, December.
    17. Charles Schwepker & David Good, 2011. "Moral Judgment and its Impact on Business-to-Business Sales Performance and Customer Relationships," Journal of Business Ethics, Springer, vol. 98(4), pages 609-625, February.
    18. Craig VanSandt & Jon Shepard & Stephen Zappe, 2006. "An Examination of the Relationship Between Ethical Work Climate and Moral Awareness," Journal of Business Ethics, Springer, vol. 68(4), pages 409-432, November.
    19. Olga Dziubaniuk & Wilhelm Barner-Rasmussen & Nikolina Koporcic & Maria Ivanova-Gongne & Tibor Mandják & Stefan Markovic, 2021. "Business-to-business marketing research: Assessing readability and discussing relevance to practitioners," Post-Print hal-05013195, HAL.
    20. Yau-De Wang & Wen-Chuan Sung, 2016. "Predictors of Organizational Citizenship Behavior: Ethical Leadership and Workplace Jealousy," Journal of Business Ethics, Springer, vol. 135(1), pages 117-128, April.
    21. Behera, Rajat Kumar & Bala, Pradip Kumar & Rana, Nripendra P. & Kizgin, Hatice, 2022. "Cognitive computing based ethical principles for improving organisational reputation: A B2B digital marketing perspective," Journal of Business Research, Elsevier, vol. 141(C), pages 685-701.
    22. John Hulland & Hans Baumgartner & Keith Marion Smith, 2018. "Marketing survey research best practices: evidence and recommendations from a review of JAMS articles," Journal of the Academy of Marketing Science, Springer, vol. 46(1), pages 92-108, January.
    23. Chin-Shan Lu & Chi-Chang Lin, 2014. "The Effects of Ethical Leadership and Ethical Climate on Employee Ethical Behavior in the International Port Context," Journal of Business Ethics, Springer, vol. 124(2), pages 209-223, October.
    24. Kelly Martin & John Cullen, 2006. "Continuities and Extensions of Ethical Climate Theory: A Meta-Analytic Review," Journal of Business Ethics, Springer, vol. 69(2), pages 175-194, December.
    25. Bruno Lussier & Nathaniel N. Hartmann & Willy Bolander, 2021. "Curbing the Undesirable Effects of Emotional Exhaustion on Ethical Behaviors and Performance: A Salesperson–Manager Dyadic Approach," Journal of Business Ethics, Springer, vol. 169(4), pages 747-766, April.
    26. Sean Valentine & Connie Bateman, 2011. "The Impact of Ethical Ideologies, Moral Intensity, and Social Context on Sales-Based Ethical Reasoning," Journal of Business Ethics, Springer, vol. 102(1), pages 155-168, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bruno Lussier & Nathaniel N. Hartmann & Willy Bolander, 2021. "Curbing the Undesirable Effects of Emotional Exhaustion on Ethical Behaviors and Performance: A Salesperson–Manager Dyadic Approach," Journal of Business Ethics, Springer, vol. 169(4), pages 747-766, April.
    2. Yu-Shan Huang & Shuqin Wei & Tyson Ang, 2022. "The Role of Customer Perceived Ethicality in Explaining the Impact of Incivility Among Employees on Customer Unethical Behavior and Customer Citizenship Behavior," Journal of Business Ethics, Springer, vol. 178(2), pages 519-535, June.
    3. Sophie Lythreatis & Abdul-Nasser El-Kassar & Palie Smart & Alberto Ferraris, 2024. "Participative leadership, ethical climate and responsible innovation perceptions: evidence from South Korea," Asia Pacific Journal of Management, Springer, vol. 41(3), pages 1285-1312, September.
    4. Maria Saleem & Faisal Qadeer & Faisal Mahmood & Antonio Ariza-Montes & Heesup Han, 2020. "Ethical Leadership and Employee Green Behavior: A Multilevel Moderated Mediation Analysis," Sustainability, MDPI, vol. 12(8), pages 1-16, April.
    5. Omar S. Itani & Fernando Jaramillo & Larry Chonko, 2019. "Achieving Top Performance While Building Collegiality in Sales: It All Starts with Ethics," Journal of Business Ethics, Springer, vol. 156(2), pages 417-438, May.
    6. He Peng & Feng Wei, 2020. "How and When Does Leader Behavioral Integrity Influence Employee Voice? The Roles of Team Independence Climate and Corporate Ethical Values," Journal of Business Ethics, Springer, vol. 166(3), pages 505-521, October.
    7. Damini Saini & Sunita Singh Sengupta, 2021. "Leading the Indian Managers to Satisfaction: The Mediating Role of Ethical Climate," Global Business Review, International Management Institute, vol. 22(2), pages 485-499, April.
    8. Jie Feng & Yucheng Zhang & Xinmei Liu & Long Zhang & Xiao Han, 2018. "Just the Right Amount of Ethics Inspires Creativity: A Cross-Level Investigation of Ethical Leadership, Intrinsic Motivation, and Employee Creativity," Journal of Business Ethics, Springer, vol. 153(3), pages 645-658, December.
    9. Connie Bateman & Sean Valentine & Terri Rittenburg, 2013. "Ethical Decision Making in a Peer-to-Peer File Sharing Situation: The Role of Moral Absolutes and Social Consensus," Journal of Business Ethics, Springer, vol. 115(2), pages 229-240, June.
    10. Robert Cialdini & Yexin Jessica Li & Adriana Samper & Ned Wellman, 2021. "How Bad Apples Promote Bad Barrels: Unethical Leader Behavior and the Selective Attrition Effect," Journal of Business Ethics, Springer, vol. 168(4), pages 861-880, February.
    11. Lu-Ming Tseng, 2019. "How Implicit Ethics Institutionalization Affects Ethical Selling Intention: The Case of Taiwan’s Life Insurance Salespeople," Journal of Business Ethics, Springer, vol. 158(3), pages 727-742, September.
    12. M. Guerci & Giovanni Radaelli & Elena Siletti & Stefano Cirella & A. Rami Shani, 2015. "The Impact of Human Resource Management Practices and Corporate Sustainability on Organizational Ethical Climates: An Employee Perspective," Journal of Business Ethics, Springer, vol. 126(2), pages 325-342, January.
    13. K. Praveen Parboteeah & Matthias Weiss & Martin Hoegl, 2024. "Ethical Climates Across National Contexts: A Meta-Analytical Investigation," Journal of Business Ethics, Springer, vol. 189(3), pages 573-590, January.
    14. Henrike Andersch & Jörg Lindenmeier & Florian Liberatore & Dieter K. Tscheulin, 2018. "Resistance against corporate misconduct: an analysis of ethical ideologies’ direct and moderating effects on different forms of active rebellion," Journal of Business Economics, Springer, vol. 88(6), pages 695-730, August.
    15. Behera, Rajat Kumar & Bala, Pradip Kumar & Rana, Nripendra P. & Kizgin, Hatice, 2022. "Cognitive computing based ethical principles for improving organisational reputation: A B2B digital marketing perspective," Journal of Business Research, Elsevier, vol. 141(C), pages 685-701.
    16. Kumar Alok, 2017. "Sāttvika Leadership: An Indian Model of Positive Leadership," Journal of Business Ethics, Springer, vol. 142(1), pages 117-138, April.
    17. Akanksha Bedi & Can M. Alpaslan & Sandy Green, 2016. "A Meta-analytic Review of Ethical Leadership Outcomes and Moderators," Journal of Business Ethics, Springer, vol. 139(3), pages 517-536, December.
    18. Raghda Abulsaoud Ahmed Younis & Aida Said Moawad Elsaid, 2021. "Enhancing the In-Role Behaviour and Organizational Citizenship Behaviours in the Workplace: A Multidimensional View for the Role of Ethical Climate," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(12), pages 1-1, July.
    19. Mbaye Fall Diallo & Christine Lambey-Checchin, 2017. "Consumers’ Perceptions of Retail Business Ethics and Loyalty to the Retailer: The Moderating Role of Social Discount Practices," Journal of Business Ethics, Springer, vol. 141(3), pages 435-449, March.
    20. S. Duane Hansen & Benjamin B. Dunford & Bradley J. Alge & Christine L. Jackson, 2016. "Corporate Social Responsibility, Ethical Leadership, and Trust Propensity: A Multi-Experience Model of Perceived Ethical Climate," Journal of Business Ethics, Springer, vol. 137(4), pages 649-662, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:198:y:2025:i:3:d:10.1007_s10551-024-05810-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.