IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i21p14257-d959897.html
   My bibliography  Save this article

Does Inclusive Leadership Improve the Sustainability of Employee Relations? Test of Justice Theory and Employee Perceived Insider Status

Author

Listed:
  • Hassan Jalil Shah

    (Government and Public Policy Department, School of Social Sciences and Humanities, National University of Science and Technology, Islamabad 44000, Pakistan)

  • Jenho Peter Ou

    (Department of Finance, Asia University, Taichung City 41354, Taiwan)

  • Saman Attiq

    (Air University School of Management, Air University, Islamabad 44000, Pakistan)

  • Muhammad Umer

    (Department of Management Sciences, COMSATS University, Islamabad 44000, Pakistan)

  • Wing-Keung Wong

    (Department of Finance, Fintech & Blockchain Research Center, and Big Data Research Center, Asia University, Taichung City 41354, Taiwan
    Department of Medical Research, China Medical University, Taichung City 40447, Taiwan
    Department of Economics and Finance, The Hang Seng University of Hong Kong, Hang Shin Link, Siu Lek Yuen 41354, Hong Kong, China)

Abstract

The concept of inclusion has moved beyond being a social construct and has received widespread attention from organisational scholars and practitioners due to its varied effects on employee behaviours and sustainable organisational outcomes. This study tests the impact of inclusive leadership on the withdrawal behaviours of employees. Perceived insider status is used as a mediator and distributive justice as a moderator. This study has collected data from nurses, physicians, and paramedics of selected tertiary hospitals in Pakistan. A convenience sampling technique was used to collect data. A total of 264 responses were analysed using the PLS-SEM approach. Results found that inclusive leadership was positively related to perceived insider status and negatively related to employee withdrawal. Perceived insider status mediated the link. The impact of inclusive leadership on perceived insider status was stronger when distributive justice was high. This study offers multiple theoretical and practical implications, as it uses justice theory as a mechanism to explain boundary conditions around the effects of inclusive leadership on employee perceptions of being insiders, managing employee withdrawals, and improving sustainability in employee relations.

Suggested Citation

  • Hassan Jalil Shah & Jenho Peter Ou & Saman Attiq & Muhammad Umer & Wing-Keung Wong, 2022. "Does Inclusive Leadership Improve the Sustainability of Employee Relations? Test of Justice Theory and Employee Perceived Insider Status," Sustainability, MDPI, vol. 14(21), pages 1-19, November.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:21:p:14257-:d:959897
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/21/14257/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/21/14257/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Massoud Moslehpour & Van Kien Pham & Wing-Keung Wong & İsmail Bilgiçli, 2018. "e-Purchase Intention of Taiwanese Consumers: Sustainable Mediation of Perceived Usefulness and Perceived Ease of Use," Sustainability, MDPI, vol. 10(1), pages 1-17, January.
    2. Lei Qi & Bing Liu & Xin Wei & Yanghong Hu, 2019. "Impact of inclusive leadership on employee innovative behavior: Perceived organizational support as a mediator," PLOS ONE, Public Library of Science, vol. 14(2), pages 1-14, February.
    3. Hair, Joe F. & Howard, Matt C. & Nitzl, Christian, 2020. "Assessing measurement model quality in PLS-SEM using confirmatory composite analysis," Journal of Business Research, Elsevier, vol. 109(C), pages 101-110.
    4. Saruultuya Tsendsuren & Chu-Shiu Li & Sheng-Chang Peng & Wing-Keung Wong, 2018. "The Effects of Health Status on Life Insurance Holdings in 16 European Countries," Sustainability, MDPI, vol. 10(10), pages 1-30, September.
    5. Andy Wui-Wing Cheng & Nikolai Sheung-Chi Chow & David Kam-Hung Chui & Wing-Keung Wong, 2019. "The Three Musketeers Relationships between Hong Kong, Shanghai and Shenzhen Before and After Shanghai–Hong Kong Stock Connect," Sustainability, MDPI, vol. 11(14), pages 1-20, July.
    6. Batmunkh John Munkh-Ulzii & Michael McAleer & Massoud Moslehpour & Wing-Keung Wong, 2018. "Confucius and Herding Behaviour in the Stock Markets in China and Taiwan," Sustainability, MDPI, vol. 10(12), pages 1-16, November.
    7. Ying Li & Yue Xia & Yang-Che Wu & Wing-Keung Wong, 2020. "The Sustainability of Energy Substitution in the Chinese Electric Power Sector," Sustainability, MDPI, vol. 12(13), pages 1-16, July.
    8. Rangan Gupta & Zhihui Lv & Wing-Keung Wong, 2019. "Macroeconomic Shocks and Changing Dynamics of the U.S. REITs Sector," Sustainability, MDPI, vol. 11(10), pages 1-12, May.
    9. Nguyen Duy Suu & Ho Thuy Tien & Wing-Keung Wong, 2021. "The Impact Of Capital Structure And Ownership On The Performance Of State Enterprises After Equitization: Evidence From Vietnam," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 16(02), pages 1-22, June.
    10. DeConinck, James B., 2010. "The effect of organizational justice, perceived organizational support, and perceived supervisor support on marketing employees' level of trust," Journal of Business Research, Elsevier, vol. 63(12), pages 1349-1355, December.
    11. Hania Aminah & Massoud Moslehpour & Hanif Rizaldy & Sarangerel Batchuluun & Jovi Sulistiawan, 2022. "Understanding the Linear and Curvilinear Influences of Job Satisfaction and Tenure on Turnover Intention of Public Sector Employees in Mongolia," Advances in Decision Sciences, Asia University, Taiwan, vol. 26(3), pages 25-53, September.
    12. WeiMing Mou & Wing-Keung Wong & Michael McAleer, 2018. "Financial Credit Risk Evaluation Based on Core Enterprise Supply Chains," Sustainability, MDPI, vol. 10(10), pages 1-17, October.
    13. Cohen-Charash, Yochi & Spector, Paul E., 2001. "The Role of Justice in Organizations: A Meta-Analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 86(2), pages 278-321, November.
    14. Anca-Maria Clipa & Cătălin-Ioan Clipa & Magdalena Danileț & Andreia Gabriela Andrei, 2019. "Enhancing Sustainable Employment Relationships: An Empirical Investigation of the Influence of Trust in Employer and Subjective Value in Employment Contract Negotiations," Sustainability, MDPI, vol. 11(18), pages 1-16, September.
    15. Zongxin Li & Xinge Li & Yongchang Hui & Wing-Keung Wong, 2018. "Maslow Portfolio Selection for Individuals with Low Financial Sustainability," Sustainability, MDPI, vol. 10(4), pages 1-11, April.
    16. Sumayya Chughtai & Tayyaba Rasool & Tahira Awan & Abdul Rashid & Wing-Keung Wong, 2021. "Birds of a Feather Flocking Together: Sustainability of Tax Aggressiveness of Shared Directors from Coercive Isomorphism," Sustainability, MDPI, vol. 13(24), pages 1-15, December.
    17. Colquitt, Jason A. & Scott, Brent A. & Judge, Timothy A. & Shaw, John C., 2006. "Justice and personality: Using integrative theories to derive moderators of justice effects," Organizational Behavior and Human Decision Processes, Elsevier, vol. 100(1), pages 110-127, May.
    18. Husam Rjoub & Jamiu Adetola Odugbesan & Tomiwa Sunday Adebayo & Wing-Keung Wong, 2021. "Investigating the Causal Relationships among Carbon Emissions, Economic Growth, and Life Expectancy in Turkey: Evidence from Time and Frequency Domain Causality Techniques," Sustainability, MDPI, vol. 13(5), pages 1-20, March.
    19. Massoud Moslehpour & Panita Chaiyapruk & Sahand Faez & Wing-Keung Wong, 2021. "Generation Y’s Sustainable Purchasing Intention of Green Personal Care Products," Sustainability, MDPI, vol. 13(23), pages 1-14, December.
    20. Riza Demirer & Rangan Gupta & Zhihui Lv & Wing-Keung Wong, 2019. "Equity Return Dispersion and Stock Market Volatility: Evidence from Multivariate Linear and Nonlinear Causality Tests," Sustainability, MDPI, vol. 11(2), pages 1-15, January.
    21. Shabir Mohsin Hashmi & Muhammad Akram Gilal & Wing-Keung Wong, 2021. "Sustainability of Global Economic Policy and Stock Market Returns in Indonesia," Sustainability, MDPI, vol. 13(10), pages 1-18, May.
    22. Huu Manh Nguyen & Thi Huong Giang Vuong & Thi Huong Nguyen & Yang-Che Wu & Wing-Keung Wong, 2020. "Sustainability of Both Pecking Order and Trade-Off Theories in Chinese Manufacturing Firms," Sustainability, MDPI, vol. 12(9), pages 1-25, May.
    23. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    24. Mou, W.M. & Wong, W.-K. & McAleer, M.J., 2018. "Financial Credit Risk and Core Enterprise Supply Chains," Econometric Institute Research Papers EI2018-27, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    25. Xu Guo & Gao-Rong Li & Michael McAleer & Wing-Keung Wong, 2018. "Specification Testing of Production in a Stochastic Frontier Model," Sustainability, MDPI, vol. 10(9), pages 1-10, August.
    26. Marcia Miceli & Janet Near & Terry Dworkin, 2009. "A Word to the Wise: How Managers and Policy-Makers can Encourage Employees to Report Wrongdoing," Journal of Business Ethics, Springer, vol. 86(3), pages 379-396, May.
    27. Aryee, Samuel & Chen, Zhen Xiong & Budhwar, Pawan S., 2004. "Exchange fairness and employee performance: An examination of the relationship between organizational politics and procedural justice," Organizational Behavior and Human Decision Processes, Elsevier, vol. 94(1), pages 1-14, May.
    28. Hongwei He & Weichun Zhu & Xiaoming Zheng, 2014. "Procedural Justice and Employee Engagement: Roles of Organizational Identification and Moral Identity Centrality," Journal of Business Ethics, Springer, vol. 122(4), pages 681-695, July.
    29. Husam Rjoub & Jamiu Adetola Odugbesan & Tomiwa Sunday Adebayo & Wing-Keung Wong, 2021. "Sustainability of the Moderating Role of Financial Development in the Determinants of Environmental Degradation: Evidence from Turkey," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    30. James K.C. Chen & Thitima Sriphon, 2022. "The Relationships among Authentic Leadership, Social Exchange Relationships, and Trust in Organizations during COVID-19 Pandemic," Advances in Decision Sciences, Asia University, Taiwan, vol. 26(1), pages 31-68, March.
    31. Anantha Raj A. Arokiasamy & Hanif Rizaldy & Ranfeng Qiu, 2022. "Exploring the Impact of Authentic Leadership and Work Engagement on Turnover Intention: The Moderating Role of Job Satisfaction and Organizational Size," Advances in Decision Sciences, Asia University, Taiwan, vol. 26(2), pages 26-47, June.
    32. Samah Ibnou-Laaroussi & Husam Rjoub & Wing-Keung Wong, 2020. "Sustainability of Green Tourism among International Tourists and Its Influence on the Achievement of Green Environment: Evidence from North Cyprus," Sustainability, MDPI, vol. 12(14), pages 1-24, July.
    33. Chi Dong & Hooi Hooi Lean & Zamri Ahmad & Wing-Keung Wong, 2019. "The Impact of Market Condition and Policy Change on the Sustainability of Intra-Industry Information Diffusion in China," Sustainability, MDPI, vol. 11(4), pages 1-20, February.
    34. Kim, Andrea & Moon, Jinhee & Shin, Jiseon, 2019. "Justice perceptions, perceived insider status, and gossip at work: A social exchange perspective," Journal of Business Research, Elsevier, vol. 97(C), pages 30-42.
    35. Ye, Qingyan & Wang, Duanxu & Guo, Weixiao, 2019. "Inclusive leadership and team innovation: The role of team voice and performance pressure," European Management Journal, Elsevier, vol. 37(4), pages 468-480.
    36. Wing-Keung Wong & Hooi Hooi Lean & Michael McAleer & Feng-Tse Tsai, 2018. "Why Are Warrant Markets Sustained in Taiwan but Not in China?," Sustainability, MDPI, vol. 10(10), pages 1-17, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ying Li & Yue Xia & Yang-Che Wu & Wing-Keung Wong, 2020. "The Sustainability of Energy Substitution in the Chinese Electric Power Sector," Sustainability, MDPI, vol. 12(13), pages 1-16, July.
    2. Kim-Hung Pho & Tuan-Kiet Tran & Thi Diem-Chinh Ho & Wing-Keung Wong, 2019. "Optimal Solution Techniques in Decision Sciences A Review," Advances in Decision Sciences, Asia University, Taiwan, vol. 23(1), pages 114-161, March.
    3. Andy Wui-Wing Cheng & Nikolai Sheung-Chi Chow & David Kam-Hung Chui & Wing-Keung Wong, 2019. "The Three Musketeers Relationships between Hong Kong, Shanghai and Shenzhen Before and After Shanghai–Hong Kong Stock Connect," Sustainability, MDPI, vol. 11(14), pages 1-20, July.
    4. Kim-Hung Pho & Thi Diem-Chinh Ho & Tuan-Kiet Tran & Wing-Keung Wong, 2019. "Moment Generating Function, Expectation And Variance Of Ubiquitous Distributions With Applications In Decision Sciences: A Review," Advances in Decision Sciences, Asia University, Taiwan, vol. 23(2), pages 65-150, June.
    5. Wenjing Xie & João Paulo Vieito & Ephraim Clark & Wing-Keung Wong, 2020. "Could Mergers Become More Sustainable? A Study of the Stock Exchange Mergers of NASDAQ and OMX," Sustainability, MDPI, vol. 12(20), pages 1-25, October.
    6. Massoud Moslehpour & Purevdulam Altantsetseg & Weiming Mou & Wing-Keung Wong, 2018. "Organizational Climate and Work Style: The Missing Links for Sustainability of Leadership and Satisfied Employees," Sustainability, MDPI, vol. 11(1), pages 1-17, December.
    7. Nguyen Huu Hau & Tran Trung Tinh & Hoa Anh Tuong & Wing-Keung Wong, 2020. "Review of Matrix Theory with Applications in Education and Decision Sciences," Advances in Decision Sciences, Asia University, Taiwan, vol. 24(1), pages 28-69, March.
    8. Tran Thai Ha Nguyen & Massoud Moslehpour & Thi Thuy Van Vo & Wing-Keung Wong, 2020. "State Ownership and Risk-Taking Behavior: An Empirical Approach to Get Better Profitability, Investment, and Trading Strategies for Listed Corporates in Vietnam," Economies, MDPI, vol. 8(2), pages 1-21, June.
    9. Massoud Moslehpour & Ka Yin Chau & Alaleh Dadvari & Ben-Roy Do & Victoria Seitz, 2019. "What Killed HTC and Kept Apple Alive? Brand Sustainability Comparison of Two Asian Countries," Sustainability, MDPI, vol. 11(24), pages 1-22, December.
    10. Xu Guo & Gao-Rong Li & Michael McAleer & Wing-Keung Wong, 2018. "Specification Testing of Production in a Stochastic Frontier Model," Sustainability, MDPI, vol. 10(9), pages 1-10, August.
    11. Sayyed Sadaqat Hussain Shah & Muhammad Asif Khan & Natanya Meyer & Daniel F. Meyer & Judit Oláh, 2019. "Does Herding Bias Drive the Firm Value? Evidence from the Chinese Equity Market," Sustainability, MDPI, vol. 11(20), pages 1-20, October.
    12. Wing-Keung Wong & Hooi Hooi Lean & Michael McAleer & Feng-Tse Tsai, 2018. "Why Are Warrant Markets Sustained in Taiwan but Not in China?," Sustainability, MDPI, vol. 10(10), pages 1-17, October.
    13. Purevdulam Altantsetseg & Alaleh Dadvari & Tsevegjav Munkhdelger & Gerelt-Od Lkhagvasuren & Massoud Moslehpour, 2020. "Sustainable Development of Entrepreneurial Orientation through Social Drivers," Sustainability, MDPI, vol. 12(21), pages 1-19, October.
    14. Hongwei He & Weichun Zhu & Xiaoming Zheng, 2014. "Procedural Justice and Employee Engagement: Roles of Organizational Identification and Moral Identity Centrality," Journal of Business Ethics, Springer, vol. 122(4), pages 681-695, July.
    15. Rosen, Christopher C. & Chang, Chu-Hsiang & Johnson, Russell E. & Levy, Paul E., 2009. "Perceptions of the organizational context and psychological contract breach: Assessing competing perspectives," Organizational Behavior and Human Decision Processes, Elsevier, vol. 108(2), pages 202-217, March.
    16. Jan Krämer & Lukas Wiewiorra, 2015. "When ‘Just’ is Just Not Enough," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 57(5), pages 325-338, October.
    17. Zhang, Lu & Cui, Li & Chen, Lujie & Dai, Jing & Jin, Ziyi & Wu, Hao, 2023. "A hybrid approach to explore the critical criteria of online supply chain finance to improve supply chain performance," International Journal of Production Economics, Elsevier, vol. 255(C).
    18. Suk-Kyu Kim & Yunduk Jeong, 2021. "Developing the Healthy and Competitive Organization in the Sports Environment: Focused on the Relationships between Organizational Justice, Empowerment and Job Performance," IJERPH, MDPI, vol. 18(17), pages 1-15, August.
    19. Tomoki Sekiguchi & Yoichiro Hayashi, 2008. "Self-Esteem and Justice Orientation as Moderators for Individual- and Group-Level Justice Effects," Discussion Papers in Economics and Business 08-15, Osaka University, Graduate School of Economics.
    20. Wang, Xiang & Yin, Jian & Yang, Yao & Muda, Iskandar & Abduvaxitovna, Shamansurova Zilola & AlWadi, Belal Mahmoud & Castillo-Picon, Jorge & Abdul-Samad, Zulkiflee, 2023. "Relationship between the resource curse, Forest management and sustainable development and the importance of R&D Projects," Resources Policy, Elsevier, vol. 85(PA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:21:p:14257-:d:959897. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.