Designing a Model of Professional Ethics for Managers in Small and Medium Enterprises
Keywords:
Professional ethics, small and medium enterprises, organizational performance, leadershipAbstract
This study aims to design and validate a comprehensive model of professional ethics for managers in small and medium enterprises (SMEs) in Tehran. The research explores how professional ethics influence various organizational dimensions, including structural, contextual, environmental, and individual factors, to enhance organizational performance and leadership effectiveness. The study employed a quantitative research design using the Delphi method to gather expert opinions and refine the model through three iterative rounds. The sample included 380 active managers from SMEs in Tehran, selected through stratified random sampling based on Krejcie and Morgan’s table. Data were collected using a validated Likert-scale questionnaire developed from expert insights and tested for reliability and validity using Cronbach’s alpha, Spearman correlation, and composite reliability. Structural equation modeling (SEM) and confirmatory factor analysis (CFA) were conducted using SPSS version 25 and PLS version 3 to evaluate the model's fit and significance. The results demonstrated that professional ethics significantly influence all examined organizational dimensions. The model exhibited strong predictive power, with adjusted R² values of 0.794 and a Goodness of Fit (Gof) index of 0.59, indicating very strong model quality. Path coefficients showed that ethics had substantial impacts on organizational factors (0.877), environmental factors (0.938), contextual factors (0.948), structural factors (0.946), and individual factors (0.955), with all relationships being statistically significant. These findings align with existing literature, emphasizing the crucial role of ethics in enhancing organizational stability, trust, and performance. The study highlights the pivotal role of professional ethics in shaping organizational behavior and performance in SMEs. The validated model underscores the importance of embedding ethical practices in leadership and organizational culture to achieve sustainable success. Future research should explore the model's applicability across different cultural contexts and industries and examine the long-term effects of ethical behavior.
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