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The Effect of Ethical Leadership and Leadership Effectiveness on Employee’s Turnover Intention in SMEs: The Mediating Role of Work Engagement

Author

Listed:
  • Georgios Theriou
  • Dimitrios Chatzoudes
  • Cesar Augusto Diaz Moya

Abstract

Purpose: The purpose of the present study is to examine the impact of ethical leadership and leadership effectiveness on employee’s turnover intention in SMEs, with an emphasis on the mediating role of work engagement. Design/Methodology/Approach: A quantitative approach was used. In particular, a research model has been empirically tested, using primary data collected from SMEs employees in two different countries. Findings: Ethical leadership and leadership effectiveness play an important role in predicting turnover intention. Moreover, work engagement mediates the relationship between ethical leadership, leadership effectiveness and turnover intention. Practical Implications: Α leadership approach which is both ethical and effective at the same time is more likely to create a productive, ethical and trusting work climate, conducive to the work engagement of employees and, therefore, reduce turnover. Originality/value: The role of ethical leadership and leadership effectiveness as well as work engagement on employee turnover in SMEs is currently under-researched.

Suggested Citation

  • Georgios Theriou & Dimitrios Chatzoudes & Cesar Augusto Diaz Moya, 2020. "The Effect of Ethical Leadership and Leadership Effectiveness on Employee’s Turnover Intention in SMEs: The Mediating Role of Work Engagement," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 947-963.
    • Handle: RePEc:ers:journl:v:xxiii:y:2020:i:4:p:947-963
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    References listed on IDEAS

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    Cited by:

    1. Anne Domurath & Simon Taggar & Holger Patzelt, 2023. "A contingency model of employees’ turnover intent in young ventures," Small Business Economics, Springer, vol. 60(3), pages 901-927, March.
    2. Justyna Dobroszek & Przemyslaw Kabalski & Aleksandra Baszczynska, 2023. "The Turnover Intention οf Supply Chain Managers Because οf Burnout: Reality οr Abstraction?," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 85-105.

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    More about this item

    Keywords

    Ethical leadership; leadership effectiveness; turnover intention; work engagement; Small and Medium Enterprises (SMEs).;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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