Recent research has uncovered the dark side of creativity by finding that creative individuals are more likely to engage in unethical behavior. However, we argue that not all creative individuals make trouble. Using moral self-regulation theory as our overarching theoretical framework, we examine individuals’ moral identity as a boundary condition and moral disengagement as a mediating mechanism to explain when and how individual creativity is associated with workplace deviant behavior. We conducted two field studies using multi-source data to test our (...) hypotheses. In Study 1, the results indicated that creativity positively predicted moral disengagement for those low in moral identity. In Study 2 with multi-wave data, we replicated the finding that moral identity moderated the effect of creativity on moral disengagement in Study 1 and further revealed that moral disengagement mediated the interactive effects of creativity and moral identity on workplace deviant behavior. The theoretical and practical implications of these findings and directions for future research are discussed. (shrink)

Corruption as a non-market strategy for firms has gained increasing attention in the field of strategy management. However, the effect of corruption on innovation is unclear, especially in the context of transition economies. Using institutional theory, we examine the relationship between corruption and new product innovation and identify the contextual conditions of the relationship. Using the World Bank Enterprise Survey data from China, our empirical results show that corruption has a positive effect on firms’ new product innovation. Moreover, we find (...) that policy instability and competitive threats from the informal sector positively moderate the relationship between corruption and new product innovation. Using post hoc analysis, we find that the potentially positive effect of corruption on new product innovation is the consequence of inherent institutional weaknesses in transition economies; as the level of institutional development increases, the effect of corruption on firms’ new product innovation will gradually decrease. Overall, our findings provide new insights into understanding corrupt behaviors in transition economies and present managerial implications for firms’ ethical dilemmas in a transition economy context. We argue that the key to overcoming these ethical dilemmas lies in promoting pro-market institutional reform to reduce the potential benefits of corruption. (shrink)

It would seem, on the surface, logical that entrepreneurs would treat stakeholders with honesty and respect. However, this is not always the case—at times, entrepreneurs lie to stakeholders in order to take a step closer to achieving legitimacy. It is these legitimacy lies that are the focus of the current work. Overall, while we know that legitimacy lies are told, we know very little about the psychological processes at work that may make it more likely for someone to tell a (...) legitimacy lie. Thus, we theorize about the pressure to pursue legitimacy, the situational and individual factors that affect this pursuit, as well as how this context can lead to moral disengagement and the telling of legitimacy lies. Our theorizing advances the existing literature and provides a dynamic framework by which future research can delve more deeply into the nuanced context that breeds the escalation of legitimacy lies. (shrink)

In this paper, we examine the relationships between three of the Big 5 personality traits and willingness to justify unethical behavior. We also consider the moderating relationship of four of the GLOBE cultural dimensions on the above relationship. We tested our propositions on a sample of 38,655 individuals from 23 different countries obtained from the latest data available from the World Values Survey Group’s survey. We found that conscientiousness and agreeableness were both negatively associated with willingness to justify unethical behavior. (...) We also conducted Hierarchical Linear Modeling and found significant interaction effects of selected GLOBE cultural dimensions on the relationships between personality traits and willingness to justify unethical behavior. We provide managerial implications of our findings, as well as suggestions for future research. (shrink)

This article answers several calls—coming as well from corporate governance practitioners as from corporate governance researchers—concerning the possibility of complying simultaneously with requirements of innovation and ethics. Revealing the long-term orientation as the variable which permits us to link the principal goal of organization, being “survival,” with innovation and ethic, the article devises a framework for incorporating ethics into a company’s processes and strategies for innovation. With the principal goal of organizations being “survival” in the long-term, it is assumed that (...) innovation is necessary in order to realize a going concern. Firms that do not innovate and adapt to rapidly changing business environments are less likely to be sustainable. Thus, it is in a business’ best interests to adopt an innovation process for long-term success. We posit that there are two simultaneous sources of innovation and change that are unavoidable and embedded in the corporate landscape. First, we argue for genetically embedded, Darwinian explanations for adaptations that enable an entity’s survival. This view is combined with more conventional, social science explanations for change. Our new, comprehensive model of the governance of innovation processes hinges on the one hand on an organization’s long-term orientation, which we argue, is not possible without a consideration of an ethical dimension. On the other hand, the model employs, for the first time, the concept of duality, in order to make the positive coexistence of innovation and ethic analytically visible. Guided by this concept the roots of the ethic within innovation are traced from both natural science forces for change, and cultural pressures operating on members of an organization. We present our Integrated Causal Model of Innovation and propose theoretical relationships that will generate numerous avenues for future research in the field, and help managers to reorient their governance strategies. (shrink)

This article answers several calls—coming as well from corporate governance practitioners as from corporate governance researchers—concerning the possibility of complying simultaneously with requirements of innovation and ethics. Revealing the long-term orientation as the variable which permits us to link the principal goal of organization, being “survival,” with innovation and ethic, the article devises a framework for incorporating ethics into a company’s processes and strategies for innovation. With the principal goal of organizations being “survival” in the long-term, it is assumed that (...) innovation is necessary in order to realize a going concern. Firms that do not innovate and adapt to rapidly changing business environments are less likely to be sustainable. Thus, it is in a business’ best interests to adopt an innovation process for long-term success. We posit that there are two simultaneous sources of innovation and change that are unavoidable and embedded in the corporate landscape. First, we argue for genetically embedded, Darwinian explanations for adaptations that enable an entity’s survival. This view is combined with more conventional, social science explanations for change. Our new, comprehensive model of the governance of innovation processes hinges on the one hand on an organization’s long-term orientation, which we argue, is not possible without a consideration of an ethical dimension. On the other hand, the model employs, for the first time, the concept of duality, in order to make the positive coexistence of innovation and ethic analytically visible. Guided by this concept the roots of the ethic within innovation are traced from both natural science forces for change, and cultural pressures operating on members of an organization. We present our Integrated Causal Model of Innovation and propose theoretical relationships that will generate numerous avenues for future research in the field, and help managers to reorient their governance strategies. (shrink)

This study participates in the discussion of the ethical culture of organizations by deepening the knowledge and understanding of the meaning of organizational ethical virtues in organizational innovativeness. The aim in this study was to explore how an organization’s ethical culture and, more specifically, organization’s ethical virtues support organizational innovativeness. The ethical culture of an organization is defined as the virtuousness of an organization. Organizational innovativeness is conceptualized as an organization’s behavioral propensity to produce innovative products and services. The empirical (...) data consisted of a total of 39 interviews from specialist organizations. Qualitative content analysis was used to analyze the data. The findings indicate that the organizational ethical virtues of feasibility, discussability, supportability, and congruency of management are those that support organizational innovativeness. The findings also show which specific elements of these virtues and related organizational practices are important to innovativeness. In addition, this study showed that the features of organizational innovativeness are not necessarily dichotomous but rather follow the ideas of virtues and are versatile in nature. (shrink)

In this article, we examine the relationship between ethical organisational culture and organisational innovativeness. A quantitative empirical analysis is based on a survey of a total of 719 respondents from all levels of three Finnish organisations, both general staff and managers. The organisations belong to both the private and public sectors. The results of this study show that organisations’ ethical culture is associated with their organisational innovativeness, and that different dimensions of ethical culture are associated with different dimensions of organisational (...) innovativeness. The ethical culture of the organisation had a specific role in process and behavioural innovativeness. It was found that congruency of management was the single dimension with the highest effect on organisational innovativeness overall and specifically on process and behavioural innovativeness. These findings suggest that when organisations are aiming for specific outcomes, such as organisational innovativeness, they need to be aware of what dimensions of ethical culture are particularly relevant. (shrink)

The paper explores the interrelations between ethical organisational culture and organisational innovativeness in two different socio-cultural contexts, Finland and Lithuania. According to the Global Innovation Index 2013, Finland ranked 6th and Lithuania 40th in terms of the national capacity to produce innovations. Prior research by Riivari and Lämsä and Riivari et al. argues the importance of the ethical dimension of organisational culture in fostering the organisational capacity to innovate. In this paper, a different context is taken to test hypothesised differences (...) between the two multidimensional phenomena. The paper discusses the findings of 2 surveys in Finnish and Lithuanian public organisations. Data analysis shows that ethical organisational culture affects organisational innovativeness, in particular process and behaviour innovativeness in both organisations. The findings suggest that some ethical virtues such as congruency of management, discussability and clarity can be explained by an institutional rather than socio-cultural context. However, the effect of transparency and sanctionability in the Finnish organisation and congruency of supervisors, supportability and feasibility in the Lithuanian organisation rests on peculiarities of a socio-cultural context. (shrink)

Drawing on the interactionist perspective of innovation and on the sustainable ethical strength framework, the present research examines the moderating role of supervisors’ moral courage to go beyond compliance in the relationships between teamwork quality, team creativity, and team idea implementation. Two field studies, using multi-source and multi-wave data, indicated that teamwork quality was positively related to team idea implementation via team creativity, particularly when team supervisors revealed moral courage to go beyond compliance. When supervisors lacked such courage, teams struggled (...) to develop creative ideas and to implement them. Robustness checks and tests of alternative theoretical explanations indicated that our model and findings are robust. From a theoretical perspective, our findings indicate that, due to its empowering and promotion focused orientation, supervisors’ courage to go beyond compliance has relevance for the teamwork and team innovation domains, playing an important moderating role in defining whether quality teamwork leads to enhanced team creativity and team idea implementation. (shrink)

Scandals in companies such as Enron have been a source of great concern in the last decade. The events that led to a global financial crisis in 2008 have heightened this concern. How does one account for executive behaviors that led to such a crisis? This article argues that a conjunction of motive, means, and opportunity creates ‘an ethical hazard’ making questionable executive decisions more probable. It then suggests that corporate unethical behavior can be minimized by creating a process to (...) identify and remove such ethical hazards, and by appointing an ‘ethical hazards marshal.’. (shrink)

With the rise of responsible innovation initiatives in firms that commercialize innovation in recent years, experts have argued that in order for RI to succeed, practical issues must be considered. Accordingly, this paper explores RI from the perspective of Korean emerging technology development firms. Although social benefits are expected from RI, which aims to reduce the side effects of innovations for society, the implementation of RI requires changing firms’ existing rules and routines. Therefore, predicting benefits and costs from the firm’s (...) perspective can shed light on the likelihood that RI will succeed. In this study, through an expert survey, the relative weights of RI-related benefit criteria and cost criteria were analyzed. On this basis, trends in priorities for RI levels were evaluated from present and future perspectives. Unexpectedly, firms recognized that even if constraints such as RI impose greater costs, they will eventually bring greater benefits. This finding indicates that innovation induced by RI overcomes obstacles, offsets costs, and then finally increases firms’ competitiveness, and that firms are willing to do good for society through RI. In the long term, a firm’s ethical activities may eventually result in improved performance by its management. Therefore, it can be concluded that, even if RI is enforced in a compulsory manner, it is highly likely that it can be well established and promoted even in firms that consider profit first. (shrink)

Organizational corruption is a wide-spread negative aspect of economic activity, and a seemingly never-ending series of corruption scandals has been made public around the globe. Although research is performed in a broad variety of disciplines, ranging from psychology to management to law, a fully satisfactory explanation for the causes of organizational corruption has not been found. By looking at organizational factors as potential triggers for corruptive behavior, this study draws upon the concept of entrepreneurial orientation. Diverse studies have shown that (...) EO, as an antecedent to company performance, has a positive effect. Recent EO literature, however, indicates that EO has not only positive but also negative consequences. In this line of reasoning, this study builds upon principal agent theory and makes a first step in exploring the impact of EO on a negative aspect of business behavior, namely organizational corruption. We gathered survey data and publicly available data from 411 firms, inquiring for both acts of corruption from within the top management team over the last 3 years and the level of entrepreneurial orientation within the organization. Results show diverging effects along the individual dimensions of EO; they point to risk orientation as the dark side of EO, as it significantly increases the likelihood of corrupt behavior in companies. In contrast, innovation orientation, to a certain extent, counterbalances by reducing the likelihood of corrupt behavior. (shrink)

Creativity and morality are key attributes that stakeholders demand of organizations. Accordingly, higher education institutions and professional training programs also seek to cultivate these attributes in future leaders. However, research has hitherto shown that, under certain conditions, creativity may conflict with morality. This complicates the development of creative individuals who are also moral. We examined the complex relationship between creativity and moral reasoning with data collected from a group of undergraduate students. By considering the cognitive processes behind creativity and moral (...) reasoning, we propose perspective taking as a moderating factor. Specifically, we found that while creative individuals might not necessarily adopt a lower level of moral reasoning, there was a more nuanced moderating relationship among creativity, perspective taking, and moral reasoning. That is, individuals who were weak in perspective taking tended to adopt a lower level of moral reasoning if they were also creative. Perspective taking was also directly and positively associated with moral reasoning. We explore the implications of our findings for future research and curriculum/program design. (shrink)

Based on ideology-infused psychological contract theory and cognitive evaluation theory, this study investigated the curvilinear relationship between ethical leadership and employee creativity. A curvilinear mediation model was proposed to explain the impact of ethical leadership on creativity, using employee intrinsic motivation as the mediator. Applying a two wave sampling design that consist 258 employees and their leaders, we found that employee creativity improved as ethical leadership increased from low to moderate levels. However, the employee creativity improvement was attenuated when ethical (...) leadership increased from moderate to high levels. Furthermore, the study also revealed that employee intrinsic motivation partially mediated this curvilinear relationship. The theoretical and managerial implications are discussed. (shrink)

A powerful set of projections has constructed post-apartheid higher education in South Africa. Among these is the expectation that technikons would become universities of technology, with a mission to drive the technology of national reconstruction and development. In this paper, one of the new universities of technology serves as a case study to explore organizational structure and to highlight the ethics of university management and leadership. Building a new university provides the opportunity to place ethics “upfront”, rather than as an (...) afterthought, by constructing an organizational framework that makes ethical issues integral to management and decision-making processes. In imagining the structure of a university of technology, the authors were inspired by future scripting methods developed by Bastiaan De Laat, and by Duncan Den Boer, Arie Rip and Sandra Speller. The research process firstly involved the identification of themes related to values and ethics through an analysis of the environment. These themes were incorporated into three scenarios of possible futures for this new university type. Using these scenarios, the ethical issues that emerged, are compared with the original themes. Conclusions are then drawn with regard to management structures that are hierarchical and entrench compliance, or that are traditionally collegiate and expertise-based, or that might enable mutual appreciation and allow for leaders to emerge within any functional space at a university of technology. (shrink)

Corporate sustainable innovation is a major driver of institutional change, and its success can be largely attributed to employees. While some scholars have described the importance of intrinsic motivations and flexibility to facilitate innovation, others have argued that constraints and extrinsic motivations stimulate innovation. In the context of sustainable innovation, we explore which employee work practices are more conducive to firm-level innovation in corporate sustainability. Our results, based on a sample of 4640 French employees from 1764 firms, confirm the positive (...) impact of intrinsic motivations, and the negative impact of job strain, on corporate sustainable innovation. We also find that extrinsic rewards, through pay satisfaction, counteract the negative effect of job strain to promote sustainable innovation. This indicates that intrinsic and extrinsic rewards can work in tandem to facilitate sustainable innovation. (shrink)

In a world that has become increasingly dependent upon employee ownership, commitment, and initiative, organizations need leaders who can inspire their␣employees and motivate them individually. Love, forgiveness, and trust are critical values of today’s organization leaders who are committed to maximizing value for organizations while helping organization members to become their best. We explain the importance of love, forgiveness, and trust in the modern organization and identify 10 commonalities of these virtues.

As a relational concept, responsible innovation can be made more tangible by asking innovation of what and responsibility of whom for what? Arranging the scattered field of responsible innovation comprehensively, starting from an anthropological point of view, into five fields of tension and five categories of spearheads, may be theoretically and practically helpful while offering suggestions for both research and management.

This article explores the hypothesis that third parties are motivated to seek information about agents who have behaved unethically in the past, even if the agent and available information are irrelevant to the third parties’ goals and interests. We explored two possible motives for this information seeking behavior: deonance, or the motive to care about ethics and justice simply for the sake of ethics and justice, and distrust-based threat monitoring. Participants in a consumer decision task were found to seek out (...) information about an agent who had behaved unethically even when the agent was explicitly excluded from the task; there were no intentions to purchase from the agent; performance expectations for the agent’s product were low; the information that could be sought was non-diagnostic, redundant or irrelevant to an ethical judgment; and alternatives in the market offered as good or better value as the unethical agent. Critically, this information seeking took place even when the observer could disengage from and was not vulnerable to the agent. The findings are discussed in terms of third party information seeking and its effects on ethical behavior in the marketplace. (shrink)