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Purpose

– The purpose of this paper is to consider business ethics as a concept and behavior that is worthy of attracting more proponents, and to explore how the diffusion of business ethics can effectively promote service innovation in an organization.

Design/methodology/approach

– This study applies a quantitative research approach to 357 businesses in the travel and tourism industry on both sides of the Taiwan Strait.

Findings

– The results reveal that the increased visibility of business ethics activities in an organization strengthens its ability to display service innovation, with the condition that knowledge sharing actively occurs as the mediating variable.

Originality/value

– This study proposes a business ethics diffusion model that is advantageous for industries seeking innovations in service provision.

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