The role of i-deals negotiated by small business managers in job satisfaction and firm performance: Do company ethics matter?

• Published in: Journal of business research 2023-03, Vol.158, p.113697, Article 113697
• Main Authors: Velasco Vizcaíno, Franklin, Martin, Silvia L., Jaramillo, Fernando
• Format: Article
• Language: English
• Subjects: Ethical climate; Idiosyncratic deals; Job satisfaction; Psychological capital; Small business managers
• ISSN: 0148-2963; 1873-7978
• DOI: 10.1016/j.jbusres.2023.113697

Scant studies have examined the chain of positive effects of idiosyncratic deals (i-deals) in organizational behavior. This study contributes to the i-deals literature by inquiring their impact on small business managers (SBMs) attempting to enhance the small firms’ performance. Building on the psychological capital framework, this novel study develops a model of the relationships among i-deals, job satisfaction and small firms’ performance. By using a dyadic sample of SBMs and objective revenue performance from an emerging country (Ecuador), this study provides a unique research environment that we analyze with structural equation modeling to shed additional light on the chain of i-deals’ effects. The findings have significant implications for small business decision making by suggesting that task i-deals mediate the relationship between schedule i-deals and job satisfaction. Further, this study reveals the moderating effect of ethical climate, which strengthens the relationship between task i-deals and job satisfaction.