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A three-level examination of the cascading effects of ethical leadership on employee outcomes: A moderated mediation analysis

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  • Byun, Gukdo
  • Karau, Steven J.
  • Dai, Ye
  • Lee, Soojin

Abstract

Based on social learning theory, we developed a moderated-mediation model of trickle-down effects to test how the ethical leadership of high-level leaders influences the ethical leadership of low-level leaders and the work outcomes of subordinate employees. Data were collected from 224 leader-employee dyads at six large companies in South Korea. The results of hierarchical regression analyses provided support for this model. Our results indicated that the ethical leadership of high-level leaders trickles down to low-level leaders, which then reduces the social loafing of employees while increasing their task performance. We also found that the self-enhancement motives of low-level leaders moderate the positive relationship between the ethical leadership of high and low-level leaders in a way that strengthens this relationship when the motives are low rather than high. This finding further suggests that low levels of self-enhancement motives strengthen the indirect effects of ethical, high-level leadership on employee social loafing and task performance.

Suggested Citation

  • Byun, Gukdo & Karau, Steven J. & Dai, Ye & Lee, Soojin, 2018. "A three-level examination of the cascading effects of ethical leadership on employee outcomes: A moderated mediation analysis," Journal of Business Research, Elsevier, vol. 88(C), pages 44-53.
    • Handle: RePEc:eee:jbrese:v:88:y:2018:i:c:p:44-53
    DOI: 10.1016/j.jbusres.2018.03.004
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    References listed on IDEAS

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    11. Pablo Ruiz & Carmen Ruiz & Ricardo Martínez, 2011. "Improving the “Leader–Follower” Relationship: Top Manager or Supervisor? The Ethical Leadership Trickle-Down Effect on Follower Job Response," Journal of Business Ethics, Springer, vol. 99(4), pages 587-608, April.
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    7. Salas-Vallina, Andrés & Simone, Cristina & Fernández-Guerrero, Rafael, 2020. "The human side of leadership: Inspirational leadership effects on follower characteristics and happiness at work (HAW)," Journal of Business Research, Elsevier, vol. 107(C), pages 162-171.
    8. Yousaf, Saira & Imran Rasheed, Muhammad & Kaur, Puneet & Islam, Nazrul & Dhir, Amandeep, 2022. "The dark side of phubbing in the workplace: Investigating the role of intrinsic motivation and the use of enterprise social media (ESM) in a cross-cultural setting," Journal of Business Research, Elsevier, vol. 143(C), pages 81-93.
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    10. Cheng, Ken & Wei, Feng & Lin, Yinghui, 2019. "The trickle-down effect of responsible leadership on unethical pro-organizational behavior: The moderating role of leader-follower value congruence," Journal of Business Research, Elsevier, vol. 102(C), pages 34-43.

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