Impact of ethical practices on small and medium enterprises’ performance in Saudi Arabia: An Partial Least Squares-Structural Equation Modeling analysis

Purpose: The real challenge of establishing and maintaining business ethics in small medium enterprises (SMEs) has become a global issue. We investigated the driving forces ethical practices (EP) its contribution to overall performance businesses. Design/methodology/approach: This study collected primary data from 117 Saudi Arabia by using well-designed questionnaire survey amongst SMEs draw inferences structural equation modelling (SEM) analysis. Findings/results: Findings suggested that top management’s characters commitment, policy culture organisation external pressure positively influence practice organisation, which leads significant positive impact on both financial non-financial performances SMEs. But level fraud corruption monitoring show mixed moderating effect relationships between performance. Practical implications: findings this research will help SMEs’ administrators managers, as well companies instil workplace ethics, manages policymakers other relevant authorities can also utilise outcomes develop guidelines frameworks improve competitiveness sustain their long run. Originality/value: unique feature is causes effects EP are considered one integrated model. gives more vivid picture issue organisation.