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The Respective Effects of Virtues and Inter-organizational Management Control Systems on Relationship Quality and Performance: Virtues Win

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Abstract

In this study, we evaluate how individual virtues and inter-organizational management control systems (IOMCS) influence buyer–supplier performance through relationship quality. Results from a sample of 232 firms confirm that virtues and IOMCS relate positively to relationship quality and performance, respectively. However, IOMCS lose their positive influence on relationship quality when considered along with virtues. That is, when both variables enter the regression model simultaneously, virtues win. This interesting finding has particular resonance at a time when research on ethics still needs to reinforce its positive effects on the practice of management.

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Notes

  1. Small (2013) provides a more comprehensive analysis of Cicero’s conception of virtues.

  2. For many philosophers, prudence is included in the virtue of “wisdom” [σοφία], which implies full perception and intelligent development of what is true (Small 2013).

  3. Thesame received financial support from F2i (Fund for Innovation in Industry), and the data were collected by an independent consultancy firm specializing in professional ethics (Socrates http://socratesonline.com/).

  4. We excluded micro firms (less than 10 employees) from the European Union’s 2003/361/CE recommendation.

  5. Many companies provide both products and services, so it is difficult to categorize them clearly as one or the other. Survey respondents may have been confused about how they should respond for their organizations, which would compromise the accuracy of the data for this control variable. However, the results show that, for service firms, the link between IOMCS and relationship quality and performance is higher, which corroborates previous studies (e.g., Flikkema et al. 2007; Gallouj and Weinstein 1997) that emphasize the importance of buyer–supplier relationships for such activities.

  6. Conditional indices values greater than 30 and correlation values greater than .9 indicate multicollinearity problems (Hair et al. 2010). Even if we were to proceed to the second step using a threshold value of 15 (instead of 30) for the condition index, we would select only one coefficient loading higher than .9 (the intercept).

  7. We thank an anonymous reviewer for this suggestion.

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Acknowledgements

The authors are grateful to the chair Ethic and governance from the Paris-Dauphine University for its support. They also thank PEAK (Purchasing European Alliance for Knowledge) and Thésame stakeholders: the Fund for Innovation and Industry, UDIMERA, the Rhône-Alpes Regional Council, the Haute-Savoie General Council and The Mont-Blanc Industries competitiveness cluster.

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Authors and Affiliations

  1. ESSEC Business School, Cergy-Pontoise, France

    Carole Donada & Gisele de Campos Ribeiro

  2. IREGE, University Savoie Mont Blanc, Annecy-le-Vieux, France

    Caroline Mothe

  3. PSL Research University, CNRS, UMR (7088), DRM, (MOST), Université Paris-Dauphine, Paris, France

    Gwenaëlle Nogatchewsky

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  1. Carole Donada
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  2. Caroline Mothe
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Correspondence to Caroline Mothe or Gwenaëlle Nogatchewsky.

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Donada, C., Mothe, C., Nogatchewsky, G. et al. The Respective Effects of Virtues and Inter-organizational Management Control Systems on Relationship Quality and Performance: Virtues Win. J Bus Ethics 154, 211–228 (2019). https://doi.org/10.1007/s10551-016-3418-x

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