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Linking retailers' ethical leadership to frontline employee outcomes: a structural equation model approach

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  • Arto Lindblom
  • Sami Kajalo
  • Lasse Mitronen

Abstract

This study aims to explore how frontline employee perceptions of the retailer's ethical leadership influence their work-related thoughts and behaviours. To achieve this we develop hypotheses about the influence of the retailer's ethical leadership on frontline employee job satisfaction, self-efficacy, organisational identification, and turnover intentions. Using structural equation modelling we test our hypotheses with a sample of 208 frontline employees from the Finnish retail industry. Our research results suggest that retailers' ethical leadership relates positively to frontline employee job satisfaction, self-efficacy and organisational identification. This study also shows that frontline employee job satisfaction has a strong negative impact on their turnover intentions. In addition, the results indicate that there is a relatively strong negative impact directly from ethical leadership on turnover intentions. Theoretical and practical implications as well as future research opportunities are also discussed.

Suggested Citation

  • Arto Lindblom & Sami Kajalo & Lasse Mitronen, 2017. "Linking retailers' ethical leadership to frontline employee outcomes: a structural equation model approach," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 14(1), pages 18-38.
    • Handle: RePEc:ids:ijbire:v:14:y:2017:i:1:p:18-38
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