Trade-Control Compliance in SMEs: Do Decision-Makers and Supply Chain Position Make a Difference?
Christian Hauser ()
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Christian Hauser: University of Applied Sciences of the Grisons
Journal of Business Ethics, 2022, vol. 179, issue 2, No 9, 473-493
Abstract:
Abstract In recent years, trade-control laws and regulations such as embargoes and sanctions have gained importance. However, there is limited empirical research on the ways in which small- and medium-sized enterprises (SMEs) respond to such coercive economic measures. Building on the literature on organizational responses to external demands and behavioral ethics, this study addresses this issue to better understand how external pressures and managerial decision-making are associated with the scope of trade-control compliance programs. Based on a sample of 289 SMEs, the findings show that the organizational responses of SMEs reflect proportionate adjustments to regulatory pressures but only if decision-makers are well informed and aware of the prevailing rules and regulations. Conversely, uninformed decision-making leads to a disproportionate response resulting in an inadequately reduced scope of the compliance program. In addition, the results indicate that SMEs that are highly integrated into supply chains are susceptible to passing-the-buck behavior.
Keywords: Small and medium-sized enterprises; Corporate response; Trade control; Compliance management; Risk management; Supply chain position (search for similar items in EconPapers)
JEL-codes: D22 D8 F51 K22 M16 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)
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Persistent link: https://EconPapers.repec.org/RePEc:kap:jbuset:v:179:y:2022:i:2:d:10.1007_s10551-021-04825-0
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DOI: 10.1007/s10551-021-04825-0
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