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Ethical climate and job satisfaction among organizational buyers: an empirical study
Nwamaka A. Anaza Brian Rutherford Minna Rollins David Nickell
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Nwamaka A. Anaza Brian Rutherford Minna Rollins David Nickell , (2015),"Ethical climate and job satisfaction among
organizational buyers: an empirical study", Journal of Business & Industrial Marketing, Vol. 30 Iss 8 pp. 962 - 972
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Abstract
Purpose The purpose of this study is to examine the relationship between ethical climate and facets of job satisfaction among organizational
buyers.
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Design/methodology/approach This research is an empirical study. Data are collected from the industrial buyers using online panel. The
INDSALES scale, the scale developed to measure job satisfaction of boundary spanners, was used to measure the job satisfaction. Partial least
squares, a components-based structural equation modeling approach, was employed to conduct data analysis.
Findings The key finding was that buyers organizational policy mediates the relationship between buyers perception of ethical climate and
buyers satisfaction with pay and promotion as well as satisfaction with coworkers and supervisors. The findings also show that work satisfaction
can be achieved at different levels based on particular components associated to the work environment.
Practical implications The role of ethical climate in this study offers insights into managers who constantly observe lower levels of job
satisfaction among their buying team. Given that companies specify rules and regulations as a way to standardize employee behaviors and prevent
unethical practices, managers must ensure that such codes specifically address issue pertaining to compensation, supervision and promotion.
Originality/value Most of the previous studies in the business-to-business boundary spanning literature address ethical climate primarily from
the salespersons perspective. Ethical issues relating to organizational buyers in business-to-business setting has largely gone underexplored. This
research is one of the few studies that focus on industrial buyers and ethical issues.
Keywords Ethical climate, Job satisfaction, Business-to-business marketing, INDSALES, Organizational buying
Paper type Research paper
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Ethical climate and job satisfaction Journal of Business & Industrial Marketing
Nwamaka A. Anaza, Brian Rutherford, Minna Rollins and David Nickell Volume 30 Number 8 2015 962972
standpoint of organizational buyers. Thus, revealing a gap organizations ethical climate dictates for its employees what
within the current boundary spanner literature. are acceptable and unacceptable behaviors. It shows
Second, researchers have found that ethical climate employees ways to tackle ethical dilemmas that arise as a result
influences job satisfaction (Jaramillo et al., 2006; Mulki et al., of ones job responsibilities, including how to deal with
2006; Pettijohn et al., 2008; Schwepker, 2001). However, day-to-day interactions with people both inside and outside
these studies display a common limitation. These studies have the companys perimeters (Mayer et al., 2009). The lack of a
treated job satisfaction as a global or single-item measure. The clear ethical environment can lead to dissonance among
use of a global job satisfaction measure is limiting for several employees.
reasons. First, it under-identifies the roles of those whose jobs When individuals feel dissonance in organizational settings,
span boundaries because it prevents them from accurately people immediately experience a negative attitude shift that
evaluating their degree of satisfaction with differential aspects lowers job satisfaction and increases tension among colleagues
(e.g. incentives) and objects (e.g. people) in the work (Viswesvaran and Deshpande, 1996; Viswesvaran et al.,
environment (Churchill et al., 1974). For example, an 1998). Once satisfaction is reduced as a consequence of
individual may be highly satisfied with company policies, but dissonance, individuals grow increasingly motivated to lessen
less satisfied with pay. Hence, a global measure of satisfaction the presence of dissonance by doing one of the following three
makes it difficult for managers to observe these differences. In things:
addition, a global job satisfaction measure obscures the 1 modifying their initial conflicting cognition;
heterogeneity of each satisfaction facet as a distinct, 2 preventing a future reoccurrence of the same action; or
independent construct with unique properties that are 3 introducing additional cognitions that help to minimize
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discriminate from one another (Churchill et al., 1974). The differences in thought processes (Festinger, 1957).
lack of job satisfaction research at various facet levels reveals
that the means through which ethics lead to satisfaction has Understanding facets of job satisfaction
not been fully examined within the b-t-b boundary spanner Job satisfaction is the positive and favorable judgments or
context, and deserves further investigation, thus, revealing a evaluations a person makes about aspects of his/her job and
second gap. working environment (Churchill et al., 1974; Weiss, 2002).
Third, an emerging stream of research builds on the Churchill et al. (1974), along with other scholars (Smith et al.,
multifaceted job satisfaction literature by examining how the 1969; Weiss et al., 1967), have noted that a boundary
facets are sequenced. Specifically, Friend et al. (2013) propose spanners job satisfaction level must take into account various
that the facets of job satisfaction are sequenced starting with aspects and objects of ones job including: company policy and
satisfaction with policy and ending with satisfaction with work. support, promotion and advancement, pay, coworkers,
Although the model provides a strong support within a sales supervision, customers and the overall work itself. As a result,
context, questions remain about the validity of this model the INDSALES scale was created as a deviation from past
outside of the salesperson context. Thus, another gap emerges summated or single-item measures of global job satisfaction
pertaining to the validity of the sequenced facets of job that did not capture the depth and multidimensionality of
satisfaction. the satisfaction construct (Churchill et al., 1974). The
For this reason, examining these relationships using a INDSALES scale was the first of its kind to measure the
multifaceted job satisfaction scale will echo the need for ethics satisfaction levels of employees in boundary spanning roles
research to capture not only the direct link between ethical (industrial salespeople). This was a departure from previous
climate and overall job satisfaction but also the intervening measures of job satisfaction like the Job Descriptive Index
process used in achieving multiple satisfactions targeted (Smith et al., 1969) and the Minnesota Satisfaction
toward various workplace objects and aspects. Therefore, Questionnaire (Weiss et al., 1967) that neglected to evaluate
building on the ethics dialogue to date, the purpose of this the exclusive characteristics of the boundary spanners (Futrell,
study is to investigate the interrelationships between the job 1979).
satisfaction facets and ethical climate within an organizational Considering the multidimensionality of job satisfaction,
buying context. Nerkar et al. (1996) presented a different approach to
clustering satisfaction. Using data from 40 different firms,
Theoretical background Nerkar and his colleagues disaggregated the job satisfaction
construct based on task responsibility toward meeting firm
Cognitive dissonance theory
goals, maintaining social interactions and achieving personal
Cognitive dissonance theory (Festinger, 1957) provides the
rewards. Relying on psychological, sociological and economic
theoretical framework to explain the relationship between
theories, they classified job satisfaction and its facets into the
ethical climate and job satisfaction. The cognitive dissonance
following three dimensions:
theory argues that individuals who perceive inconsistent
1 instrumental satisfaction;
cognitions with their belief systems will experience a
2 social satisfaction; and
heightened state of psychological uneasiness (Festinger,
3 egocentric satisfaction.
1957). An organizations ethical climate can act as the basis
for dissonance with their belief systems. Ethical climate Instrumental satisfaction, according to Nerkar et al. (1996),
is defined as the stable, psychologically meaningful reflects the positive reactions that emanate from performing
perceptions members of organizations hold concerning ethical ones work responsibilities in a manner that promotes
procedures and policies existing in their organizations and organizational goals. Instrumental satisfaction likened to
organizational subunits (Winbush et al., 1997, p. 1705). An Herzberg et al.s (1959) motivator factors depict the progress
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Ethical climate and job satisfaction Journal of Business & Industrial Marketing
Nwamaka A. Anaza, Brian Rutherford, Minna Rollins and David Nickell Volume 30 Number 8 2015 962972
an employee makes in accomplishing his/her task, to avoid societies and governmental institutions, satisfaction with
performance gaps. Because instrumental satisfaction relate to policy and support is posited in this study as the driving force
narrowing performance gaps by doing the work itself, the for all other job satisfaction facets. Accordingly, satisfaction
INDSALES facet of work satisfaction is identified as a form of with policy and support is classified as a key element of
instrumental satisfaction. governance satisfaction.
Social satisfaction entails the gratifying aspects of ones job This paper adopts and validates the accuracy of categorizing
that arises from maintaining a working relationship with other the INDSALES facets into Nerkar et al.s (1996) satisfaction
members of ones organizational group including superiors, dimensions within an organizational buying context.
subordinates and coworkers (Nerkar et al., 1996). Based on Specifically, this study models six facets of the INDSALES
the definition of social satisfaction, the facets of the instrument into four satisfaction dimensions (instrumental,
INDSALES scale most closely associated with this dimension social, egocentric and governance). The seventh facet,
are satisfaction with coworkers and satisfaction with satisfaction with customers, is excluded from this study
supervision. because customer interactions do not fit into the role
Egocentric satisfaction focuses on maximizing the economic responsibilities of organizational buyers. The model, as
benefits and overall utility an individual receives from his/her depicted in Figure 1, proposes that buyers who perceive a
job. According to Nerkar et al. (1996), rationale people behave positive ethical organizational climate will hold favorable
in ways that help them increase the benefits they receive on impressions of the firms policies. This subsequently leads to
and from their jobs. In an effort to boost their egocentric additional satisfaction with supervision, coworkers,
satisfaction, people will improve their performance level promotion, pay and the overall work itself.
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Social
Supervision
H3a H7a
H8
H6
H2a H5b
Pay
Egocentric
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Ethical climate and job satisfaction Journal of Business & Industrial Marketing
Nwamaka A. Anaza, Brian Rutherford, Minna Rollins and David Nickell Volume 30 Number 8 2015 962972
Surprisingly, neither of these two studies evaluated the impact employee code of conduct, nurses were more satisfied with
of ethical climate on policy and support satisfaction. their supervisors and coworkers. According to their findings,
Moreover, neither study assessed policy and support the presence of ethical rules ensured that all nurses strictly
satisfaction as a facet of job satisfaction. followed hospital policies regardless of rank or status. Policies
The Deshpande (1996) study dealt with pay, promotion, accessible and applicable to all employees also helped
coworker, supervisor and work satisfaction, whereas Tsai and administrators minimize cognitive dissonance. For example, if
Huang (2008) examined similar facets. Evidence from the an employee perceives a supervisors behavior to be contrary
Tsai and Huang (2008) study, nonetheless, illustrated that in to the companys ethical stipulation, internal moral
organizations where rules and policies applied to all personnel, contentions will follow because the employee may become
the potential for employees to experience multiple cognitions uncertain of whether to follow the supervisors contrary
contrary to the companys ethical standards were less. behavior or the companys rules (Viswesvaran and
Accordingly, when ethical policies and rules help individuals Deshpande, 1996). In contrast, if all employees (supervisors
minimize cognitive dissonance, an individuals satisfaction and subordinates) are aware of the company policies and
with his/her supervisors, coworkers, pay and overall work follow the established ethical rules, workers are less likely to
tends to increase. Given that the relationship between ethical experience internal conflicts, thus experiencing higher social
climate and facets of job satisfaction has primarily been satisfaction. Thus, the following hypotheses are offered:
examined in non-profit settings, and no study to date has
examined ethical climate in relation to satisfaction with policy H3a. Buyers satisfaction with policy and support will have a
and support from an organizational buyers perspective, the positive effect on buyers satisfaction with supervision.
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Ethical climate and job satisfaction Journal of Business & Industrial Marketing
Nwamaka A. Anaza, Brian Rutherford, Minna Rollins and David Nickell Volume 30 Number 8 2015 962972
H5a. Buyers satisfaction with promotion and advancement Interrelationship among social satisfaction facets
will have a positive effect on buyers satisfaction with Researchers contend that employees are more likely to form
work. close relationships with other employees and their firms when
they perceive that their supervisors value their contributions
H5b. Buyers satisfaction with pay will have a positive effect (Eisenberger et al., 2001; Wayne et al., 1997). According to
on buyers satisfaction with work. the organizational support theory, employees generally feel an
obligation to help their coworkers when they believe they have
Interrelationship between egocentric satisfaction been treated equitably and appropriately by their supervisors
facets and the organization as a whole (Eisenberger et al., 2001). As
This study argues that a buyers satisfaction with promotion a result, they become more likely to reciprocate this behavior
and advancement in his/her buying firm will have a positive by engaging in extra-role activities, such as helping a new hire
effect on the buyers satisfaction with the companys pay. get familiar with his/her job, assisting other employees when
Promotions are often followed by increases in job amenities their workload increases and socializing with colleagues
and rewards such as bigger office space, authority and income outside the office (Wayne et al., 1997). As such, when
(Kosteas, 2011). Companies use promotions to incentivize supervisor support increases, employees satisfaction with
productive employees, thus giving them an opportunity to their supervisors also increases. This serves as a strong
earn a pay raise. Labor economists assert that mobility up the indication that employees are pleased with the people around
professional ladder is often accompanied by increases in pay them, including their coworkers. Based on this, the following
(Booth et al., 2003). Booth et al. (2003) maintains that the hypothesis is offered:
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Ethical climate and job satisfaction Journal of Business & Industrial Marketing
Nwamaka A. Anaza, Brian Rutherford, Minna Rollins and David Nickell Volume 30 Number 8 2015 962972
technique that can handle many independent variables and individual paths, and their significance. Figure 2 shows the
does not require a sample size as large as covariance-based PLS results for direct effects and R2 values. First, we examine
SEM (Hair et al., 2013). We used SmartPLS software to the AVE for the constructs. Ethical climate accounts for 37
conduct the analysis (Ringle et al., 2005: SmartPLS 2.0 , per cent of the variance in buyers satisfaction on policy.
www.smartpls.de). The PLS data analysis involves the Satisfaction with policy accounts for 48 per cent of the
following two stages: variance in satisfaction with promotion and 24 per cent in
1 assessing measurement models; and satisfaction pay. Buyers satisfaction with policy and
2 analyzing the structural model (Chin, 1998; Hair et al., supervision accounts for 30 per cent of variance in coworker
2011). satisfaction. Finally, satisfaction with policy, pay, promotion,
Supervision
H3a: 0.57**
R 2 = 0.33
H7a: 0.12 ns
H8: 0.26**
H6: 0.52**
H5b: 0.21**
H2a: 0.05 ns
Pay
R 2 = 0.24
967
Ethical climate and job satisfaction Journal of Business & Industrial Marketing
Nwamaka A. Anaza, Brian Rutherford, Minna Rollins and David Nickell Volume 30 Number 8 2015 962972
coworkers and supervisor accounts for 48 per cent of the a positive effect on work satisfaction. H7a was not supported
variance in buyers overall work satisfaction. ( 0.12, ns), indicating that satisfaction with supervision
Second, we assess the predictive validity of exogenous latent does not have a direct effect on work satisfaction. In H7b, the
variables employing the cross-validated redundancy measure study hypothesized that the buyer satisfaction with coworkers
Q2, StoneGeisser test (Tenenhaus et al., 2005; Hair et al., would have a positive effect on work satisfaction. We found
2011). The values greater than zero refer to situation where support for this hypothesis ( 0.29, p 0.01). Thus, H7b is
exogenous constructs have predictive relevance for the supported. H8 proposed that buyer satisfaction with
endogenous construct in the model (Chin, 1998; Hair et al., supervision would have a positive impact on satisfaction with
2011). In our research model, all the values for cross-validated coworkers. The results provide support for H8 ( 0.26, p
redundancy are greater than zero, ranging from 0.14 to 0.65. 0.01). Overall, 12 hypotheses were proposed and 9 were
Therefore, we can conclude that our model has predictive supported. To confirm the mediating effect of organizational
relevance. policy in our model, the direct effects between a buyers
Third, we examine the individual path coefficients and their perception of ethical climate and satisfaction with supervisor,
significance. Table III provides the results of path analyses. coworkers, pay, promotion and the work satisfaction were
Our results showed that the buyers perception of ethical tested. No significant relationships were found.
climate had a strong positive effect on buyer satisfaction with
company policy and support ( 0.61, p 0.01), thus
supporting H1. H2a predicted that a buyers satisfaction with Discussion
organizational policy and support would have a positive effect Ethic research in general has been extensive, but nowhere has
on buyers satisfaction with pay. H2a was not supported (
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Ethical climate and job satisfaction Journal of Business & Industrial Marketing
Nwamaka A. Anaza, Brian Rutherford, Minna Rollins and David Nickell Volume 30 Number 8 2015 962972
support has the strongest effect on work satisfaction. The Managerial implications for purchasing managers and
findings also demonstrate that buyers work satisfaction is organizational buyers
directly influenced by workplace interactions with coworkers, as Drawing on the cognitive dissonance theory, this studys
well as incentive properties associated with financial rewards. findings support previous arguments made in non-b-t-b
Fourth, the results reveal that motivations for organizational settings regarding the influence of ethical climate on job
buyers work satisfaction in b-t-b firms differ from other satisfaction facets (Viswesvaran and Deshpande, 1996;
industries, particularly sales and non-profit firms. For Viswesvaran et al., 1998). The role of ethical climate in this
example, satisfaction with pay is a critical instigator for buyers study offers insights into managers who constantly observe
work satisfaction. However, pay satisfaction does not predict lower levels of job satisfaction among their buying team.
work satisfaction in salespeople (Friend et al., 2013). Fifth, we Given that companies specify rules and regulations as a way
successfully find support to cluster the INDSALES facets of to standardize employee behaviors and prevent unethical
satisfaction into Nerkar et al.s (1996) satisfaction practices, managers must ensure that such codes specifically
subconstructs. Furthermore, this study extends Nerkar et al.s address issue pertaining to compensation, supervision and
(1996) satisfaction classification by successfully introducing promotion. For example, when it comes to compensation,
and validating a fourth distinct satisfaction dimension ethical policies must clearly spell out for purchasers the
governance satisfaction. companys rules regarding gift giving, illegal payments,
commissions, contest fees and benefits (Saini, 2010).
This studys application of the INDSALES scale further
Research implications
shows managers the need to understand the complexity of the
This study provides several research contributions to advance
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969
Ethical climate and job satisfaction Journal of Business & Industrial Marketing
Nwamaka A. Anaza, Brian Rutherford, Minna Rollins and David Nickell Volume 30 Number 8 2015 962972
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Ethical climate and job satisfaction Journal of Business & Industrial Marketing
Nwamaka A. Anaza, Brian Rutherford, Minna Rollins and David Nickell Volume 30 Number 8 2015 962972
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Ethical climate and job satisfaction Journal of Business & Industrial Marketing
Nwamaka A. Anaza, Brian Rutherford, Minna Rollins and David Nickell Volume 30 Number 8 2015 962972
Industrial Marketing Management and the Journal of Business Minna Rollins is the corresponding author and can be
and Industrial Marketing. contacted at: mrollins@westga.edu
Minna Rollins (DSc in Economics and Business David Nickell is Associate Professor of Marketing at the
Administration) is an Associate Professor of Marketing at the University of West Georgia. He has published in journals
University of West Georgia and Visiting Professor of such as the Journal of Business Research, Industrial Marketing
International Business and Sales Management at the Management and the Journal of Business and Industrial
University of Eastern Finland, Kuopio. Her research interests Marketing. Dr. Nickell has over 15 years of experience
include customer information usage, sales management and designing and implementing high-impact marketing
international marketing. She has published her research in strategies for companies such as Nabisco, Honeywell, UPS,
the journals including Industrial Marketing Management, the Chick-fil-A, Aflac, Kimberly-Clark and the Atlanta
Journal of Business Research, International Journal of Physical Falcons. Dr. Nickell earned his PhD at Georgia State
Distribution and Logistics Management and Journal of Business University, his MBA from the Goizueta Business School at
and Industrial Marketing. Minna teaches undergraduate-, Emory University and his undergraduate degree from the
graduate- and doctoral-level courses and seminars. University of Kentucky.
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