Decision Making in SMEs

2015 ◽  
pp. 1049-1062
Author(s):  
Gizem Öksüzoğlu-Güven

This chapter explores theories and concepts of ethical decision making in SMEs and how individuality of entrepreneurs affects their organisations. In order to investigate the entrepreneurial ethical decision-making process, the chapter crossbreeds the concepts of greed and power, cognitive moral development, ethical ideologies, and individual psychological characteristics as determinant of ethical decision making. Through discussion of relevant models, the chapter presents arguments on determinants of individual ethical decision making as well as external factors that influence the decision-making process. In doing so, it aims to provide a distinctive perspective on understanding decision making in SMEs through forming a bridge between individual moral psychology and entrepreneurial decision making. This understanding enables us to have an alternative reasoning when examining employment-related issues.

Author(s):  
Gizem Öksüzoğlu-Güven

This chapter explores theories and concepts of ethical decision making in SMEs and how individuality of entrepreneurs affects their organisations. In order to investigate the entrepreneurial ethical decision-making process, the chapter crossbreeds the concepts of greed and power, cognitive moral development, ethical ideologies, and individual psychological characteristics as determinant of ethical decision making. Through discussion of relevant models, the chapter presents arguments on determinants of individual ethical decision making as well as external factors that influence the decision-making process. In doing so, it aims to provide a distinctive perspective on understanding decision making in SMEs through forming a bridge between individual moral psychology and entrepreneurial decision making. This understanding enables us to have an alternative reasoning when examining employment-related issues.


Author(s):  
Gizem Öksüzoğlu-Güven

This chapter looks into determinants and contexts that influence an entrepreneur's decision where ethical judgment is required. By looking into relevant theories and research in the field of ethical decision making, concepts of greed and power and their influence on ethical decision making, cognitive moral development, individual psychological characteristics, ethical ideologies, organizational, environmental, industrial, and moral intensity are discussed through relevant models. The aim is to provide a perspective on understanding ethical decision making in the entrepreneurial context by forming a bridge between our understanding of individual moral psychology and entrepreneurial decision making. This discussion further augments the existing research on entrepreneurship and SME literature within the ethical decision-making context. What is presented in this chapter provides an alternative understanding of reasoning when examining entrepreneurial behaviour.


2015 ◽  
pp. 1331-1347
Author(s):  
Gizem Öksüzoğlu-Güven

This chapter looks into determinants and contexts that influence an entrepreneur's decision where ethical judgment is required. By looking into relevant theories and research in the field of ethical decision making, concepts of greed and power and their influence on ethical decision making, cognitive moral development, individual psychological characteristics, ethical ideologies, organizational, environmental, industrial, and moral intensity are discussed through relevant models. The aim is to provide a perspective on understanding ethical decision making in the entrepreneurial context by forming a bridge between our understanding of individual moral psychology and entrepreneurial decision making. This discussion further augments the existing research on entrepreneurship and SME literature within the ethical decision-making context. What is presented in this chapter provides an alternative understanding of reasoning when examining entrepreneurial behaviour.


2020 ◽  
Vol 11 (5) ◽  
pp. 93
Author(s):  
Abdul Hamid Habbe ◽  
Andi Kusumawati ◽  
Alimuddin ◽  
Yohanis Rura ◽  
Iskandar Muda

This study examines the effect of the interaction between cognitive moral development (pragmatic, accommodating, and autonomous) and an organizational situation (agency and stewardship) in business ethical decision making (earnings management and expropriation). This research employed a laboratory experiment design of full factorial factor 3x2 between-within subjects.There were 97 postgraduate students of Hasanuddin University that acted as participants. Data were analyzed by ANOVA and t-test. The results showed that the level of cognitive moral development is positively related to the degree of ethical decisions in accounting and expropriation. The higher the level of cognitive moral development, the more managers act ethically in decisions relating to accounting and expropriation. Meanwhile, the agency and stewardship situation have no effect on the differences in ethical decision making both in accounting and expropriation. Similarly, the exposure to an organizational situation has no impact on the relationship between levels of cognitive moral development and ethical decision making.The assumption stating that cognitive moral development of each participant has been an anchor and not easily changed to the different or the opposite situations is empirically proven.


1998 ◽  
Vol 8 (3) ◽  
pp. 431-445 ◽  
Author(s):  
Thomas M. Jones ◽  
Lori Verstegen Ryan

Abstract:To date, our understanding of ethical decision making and behavior in organizations has been concentrated in the area of moral judgment, largely because of the hundreds of studies done involving cognitive moral development. This paper addresses the problem of our relative lack of understanding in other areas of human morality by applying a recently developed construct—moral approbation—to illuminate the link between moral judgment and moral action. This recent work is extended here by exploring the effect that organizations have on ethical behavior in terms of the moral approbation construct.


2006 ◽  
Vol 16 (4) ◽  
pp. 449-473 ◽  
Author(s):  
Neal M. Ashkanasy ◽  
Carolyn A. Windsor ◽  
Linda K. Treviño

Abstract:In this study, we test the interactive effect on ethical decision-making of (1) personal characteristics, and (2) personal expectancies based on perceptions of organizational rewards and punishments. Personal characteristics studied were cognitive moral development and belief in a just world. Using an in-basket simulation, we found that exposure to reward system information influenced managers’ outcome expectancies. Further, outcome expectancies and belief in a just world interacted with managers’ cognitive moral development to influence managers’ ethical decision-making. In particular, low-cognitive moral development managers who expected that their organization condoned unethical behavior made less ethical decisions while high cognitive moral development managers became more ethical in this environment. Low cognitive moral development managers also behaved less ethically when their belief in a just world was high.


2005 ◽  
Vol 4 (2) ◽  
Author(s):  
Djuwari . ◽  
Tatik Suryani

How to make ethical decision making is very important in many aspect managerial process, because its implication can impact many other activities. Research found that many unethical behavior in business process is caused by unethical decision making. The recent research indicates that gender has important role in decision making process. The research is aimed to examine the effects of gender in decision making process in management. Beside it, the research also wants to examine the influence of moral reasoning to ethical decision making. Research involved 105 respondent from many non profit organizations located in East Java. By using t-test, the result reveals that there is significant difference between women and man in decision making. Women more ethical in decision making than men, in some aspect. Women more commit to autonomy, equality, win-win principle and moral integrity. By using simple regression analysis, the result indicates that moral reasoning influences significantly to ethical decision making. This research support the previously research that is conducted by Glover (2002) which the culture setting similarly with this research. The result can't be separated by the Indonesia cultural that expect women more ethical, obedience and respect to moral value.


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