Abstract
The paper deals with interfunctional coordination (IFC) from ethical and environmental point of view. It will be interesting to know if the parts of IFC connected with ethical and environmental aspects have positive or negative influence on business performance. Data was gained from 60 SMEs producing electrical equipment and electronic components in the Czech Republic. Survey questionnaire and critical discussion with the literature were used. Kaiser-Meyer-Olkin (KMO) test and Bartett’s sphericity test were applied. For analysing the influence of ethical and environmental aspect on business performance Spearman’s rank correlation was used. The results show: (1) a positive relation between ethical aspects and business performance, (2) no positive relation between implementation of environmental aspects and business performance, and (3) no difference in results in marketing business performance and financial business performance. The results can suggest that a preference towards ethical decisions and behaviour leads to a higher business performance and by contraries, environmental aspects leads to smaller business performance. The collected data shows that environmental and ethical decisions of managers in the Czech Republic can differ from environmental and ethical decisions of managers in different countries.
Highlights
interfunctional coordination (IFC) is essential for managers because (1) it obtains information about the market, (2) shares this information, (3) integrates all knowledge and activities, functions and processes within the company, and (4) assists in responses to this information with regard to the coordination activities
Five following questions were used for the analysis: We offer services, renovation or refurbishing and provide reusing of products
Ethical aspects are measured using two items related to ethical decisions and identifications of workers with the company
Summary
IFC is essential for managers because (1) it obtains information about the market, (2) shares this information, (3) integrates all knowledge and activities, functions and processes within the company, and (4) assists in responses to this information with regard to the coordination activities. Ethics within IFC is often connected with the behaviour of employees, e. Manurung, Suhartadi, and Saefudin (2015) stress ethics and ethical decisions in the relationship with IFC. They emphasize that employees who work with ethical principles do not transgress these principles. According to Cheng and Wang (2015), ethics can lead to an increase in the identification of every employee with the team and with the company. Hašková (2017) shows that regarding the ethical aspect, the new production technology is beneficial in terms of environmental responsibility
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