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

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

Addresses: Department of Computer Science and Engineering, Sonargaon University (SU), 147/I, Green Road Panthapath, 1215, Dhaka, Bangladesh ' College of Business, Al Ain University, 64141 Al Ain, United Arab Emirates ' Business School, Tecnologico de Monterrey, Av. Carlos Lazo 100, Santa Fe, La Loma, Alvaro Obregon, 01389 Ciudad de México, México ' School of Business, Universidad de Lima, Javier Prado Este 4600, Santiago de Surco, Lima, Peru

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.

Keywords: confidence level; ethical decision making; empirical study; risk acceptance; structural equation modelling; SEM; United Arab Emirates; UAE.

DOI: 10.1504/IJBGE.2022.126172

International Journal of Business Governance and Ethics, 2022 Vol.16 No.4, pp.437 - 462

Received: 15 Mar 2021
Accepted: 10 May 2021
Published online: 14 Oct 2022 *

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