Business Ethics and International Trade Performance: A Dual Mediation Model of Ethical Leadership and Organizational Identification

Cheng-Wen Lee and Yu-Ting Jhou

Advances in Management and Applied Economics, 2026, vol. 16, issue 4, 2

Abstract: Abstract This study examines the impact of business ethics on international trade performance, with particular emphasis on the mediating roles of ethical leadership and organizational identification. Drawing on Social Learning Theory and Social Identity Theory, a dual-path mediation framework is proposed to explain how ethical values are translated into organizational outcomes. Data were collected from 342 employees engaged in international trade activities within Taiwanese small and medium-sized enterprises (SMEs). Structural Equation Modeling (SEM) was employed to test the hypothesized relationships. The results indicate that business ethics has a significant positive effect on international trade performance. In addition, business ethics significantly enhances ethical leadership and organizational identification, both of which positively influence performance. Mediation analysis confirms that ethical leadership (behavioral mechanism) and organizational identification (psychological mechanism) serve as parallel mediators, partially transmitting the effect of business ethics on performance. This study contributes to the literature by integrating ethical leadership and organizational identification into a unified multi-level framework, offering a more comprehensive explanation of how business ethics influences performance. From a managerial perspective, the findings highlight the importance of ethical governance, leadership development, and employee identification in fostering trust, strengthening cross-border relationships, and achieving sustainable competitive advantage in international markets. JEL classification numbers: F23, F14, M12, M14.

Keywords: Business Ethics; International Trade Performance; Ethical Leadership; Organizational Identification. (search for similar items in EconPapers)
Date: 2026
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