Further Beyond the Basic Background Check: Predicting Future Unethical Behavior

Brody, Richard G.; Perri, Frank S.; Buren, Harry J. Van

doi:10.1111/basr.12074

Cited by 7 publications

(3 citation statements)

References 35 publications

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“…In this case, reductions in uncertainty regarding where to drill can have significant economic value. As it relates to trust, some business-related examples where gathering additional information can inform a trust decision include employers performing background checks and credit reports in hiring (Kiviat, 2019; Brody et al , 2015) and buyers consulting seller reviews on e-commerce platforms (Bhargava et al , 2016). Higher perceived risk in the strategic alliance will cause one party to pay more attention to the other's behavior (McKnight et al , 1998) and will lead to more information collection.…”

Section: Methodsmentioning

confidence: 99%

Balancing risk and trust for strategic alliance formation decisions

Collier

Wood

Henderson

2021

JSMA

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PurposeTrust entails the assumption of risk by the trustor to the extent that the trustee may act in a manner unaligned with the trustor's interests. Before a strategic alliance is formed, each firm formulates a subjective assessment regarding whether the other firm will behave in a trustworthy manner and not act opportunistically. To inform this partner analysis and selection process, the authors leverage the concept of value of information to quantify the benefit of information gathering activities on the trustworthiness of a potential trustee.Design/methodology/approachIn this paper, the authors develop a decision model that explicitly operationalizes trust as the subjective probability that a trustee will act in a trustworthy manner. The authors integrate the concept of value of information related to information gathering activities, which would inform a trustor about a trustee's trustworthiness.FindingsTrust inherently involves some degree of risk, and the authors find that there is practical value in carrying out information gathering activities to facilitate the partner analysis process. The authors present a list of trustworthiness indicators, along with a scoring sheet, to facilitate learning more about a potential strategic alliance partner.Originality/valueThe need for a quantitative model that can support risk-based strategic alliance decision-making for partner analysis represents a research gap in the literature. The modeling of strategic alliance partner analysis decisions from a value of information (VOI) perspective adds a contribution to the trust literature.

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Section: Methodsmentioning

confidence: 99%

Balancing risk and trust for strategic alliance formation decisions

Collier

Wood

Henderson

2021

JSMA

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“…Aamdot (2006) defined a reference as an “expression of an opinion, either orally or through a written checklist, regarding an applicant's ability, previous performance, work habits, character, or potential for future success.” The purpose of soliciting such references, which may be an element of a larger background check or due diligence effort, is to uncover “counterproductive work behaviors” which include illegal, immoral and/or deviant behavior which may be impactful to the organization (Brody et al , 2015). References are not highly accurate predictors of behavior, however, and are prone to two failure modes – falsely identifying bad partners as good, and falsely identifying good partners as bad (Brody et al , 2015). Aamdot and Williams (2005) found the predictive validity of references to be around 0.29, while McCarthy and Goffin (2001) reported values from the literature between 0.01 and 0.38.…”

Section: Numerical Example Of the Microelectronics Supply Chainmentioning

confidence: 99%

“…One potential way to gather information about a potential supply chain partner would be to ask for references. Aamdot (2006) defined a reference as an “expression of an opinion, either orally or through a written checklist, regarding an applicant's ability, previous performance, work habits, character, or potential for future success.” The purpose of soliciting such references, which may be an element of a larger background check or due diligence effort, is to uncover “counterproductive work behaviors” which include illegal, immoral and/or deviant behavior which may be impactful to the organization (Brody et al , 2015). References are not highly accurate predictors of behavior, however, and are prone to two failure modes – falsely identifying bad partners as good, and falsely identifying good partners as bad (Brody et al , 2015).…”

Section: Numerical Example Of the Microelectronics Supply Chainmentioning

confidence: 99%

Decision model with quantification of buyer-supplier trust in advanced technology enterprises

Collier

Guin

Sarkis

et al. 2021

BIJ

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PurposeIn the buyer-supplier relationship of a high-technology enterprise, the concepts of trust and risk are closely intertwined. Entering into a buyer-supplier relationship inherently involves a degree of risk, since there is always an opportunity for one of the parties to act opportunistically. Purchasing and supply managers play an important role in reducing the firm's risk profile, and must make decisions about whether or not to enter into, or remain in, a relationship with a supplier based on a subjective assessment of trust and risk.Design/methodology/approachIn this paper, the authors seek to explore how trust in the buyer-supplier relationship can be quantitatively modeled in the presence of risk. The authors develop a model of trust between a buyer and supplier as a risk-based decision, in which a buyer decides to place trust in a supplier, who may either act cooperatively or opportunistically. The authors use a case study of intellectual property (IP) piracy in the electronics industry to illustrate the conceptual discussion and model development.FindingsThe authors produce a generalizable model that can be used to aid in decision-making and risk analysis for potential supply-chain partnerships, and is both a theoretical and practical innovation. However, the model can benefit a variety of high-technology enterprises.Originality/valueWhile the topic of trust is widely discussed, few studies have attempted to derive a quantitative model to support trust-based decision making. This paper advanced the field of supply chain management by developing a model which relates risk and trust in the buyer-supplier relationship.

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In employees we Trust: Employee fraud in small businesses

Othman

Ameer

2022

J Manag Control

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This paper examines how and why employees used online computer access to commit fraud in New Zealand small businesses. Drawing on data from 18 court documents between 2006 and 2020, we use document analysis to examine the pressure, opportunity, rationalization, and capability elements using the fraud diamond framework. We provide three major findings. First, the employee frauds were motivated by vice and family circumstances. The combination of opportunity and capability had a devastating effect on the length of the fraud and the amount of financial loss. Second, the frauds were mostly perpetrated by middle-aged women in both managerial and nonmanagerial positions who displayed unusual behaviour but had no prior convictions. Third, small businesses are vulnerable to fraud in their billing, accounts payable, and payroll systems; thus, relevant prevention strategies are recommended. Overall, we conclude that the tendency for fraud is heightened in small businesses where trusted employees: have multiple responsibilities; have an occupational position that provides them with opportunity; are capable of manipulating online access; and have external pressures of addictions or adverse family circumstances. Our multiple cases approach facilitates a better understanding of the employee fraud contexts, including the motivation and the methods employed to commit such fraud in New Zealand.

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Further Beyond the Basic Background Check: Predicting Future Unethical Behavior

Cited by 7 publications

References 35 publications

Balancing risk and trust for strategic alliance formation decisions

Balancing risk and trust for strategic alliance formation decisions

Decision model with quantification of buyer-supplier trust in advanced technology enterprises

In employees we Trust: Employee fraud in small businesses

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