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How Does Ethical Leadership Trickle Down? Test of an Integrative Dual-Process Model

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  • Zhen Wang

    (Central University of Finance and Economics)

  • Haoying Xu

    (Central University of Finance and Economics)

  • Yukun Liu

    (National University of Singapore)

Abstract

Although the trickle-down effect of ethical leadership has been documented in the literature, its underlying mechanism still remains largely unclear. To address this gap, we develop a cross-level dual-process model to explain how the effect occurs. Drawing on social learning theory, we hypothesize that the ethical leadership of high-level managers could cascade to middle-level supervisors via its impact on middle-level supervisors’ two ethical expectations. Using a sample of 69 middle-level supervisors and 381 subordinates across 69 sub-branches from a large banking firm in China, we found that middle-level supervisors’ ethical efficacy expectation and unethical behavior–punishment expectation (as one form of ethical outcome expectations) accounted for the trickle-down effect. The explanatory role of middle-level supervisors’ ethical behavior–reward expectation (as the other form of ethical outcome expectations), however, was not supported. The theoretical and practical implications are discussed.

Suggested Citation

  • Zhen Wang & Haoying Xu & Yukun Liu, 2018. "How Does Ethical Leadership Trickle Down? Test of an Integrative Dual-Process Model," Journal of Business Ethics, Springer, vol. 153(3), pages 691-705, December.
    • Handle: RePEc:kap:jbuset:v:153:y:2018:i:3:d:10.1007_s10551-016-3361-x
    DOI: 10.1007/s10551-016-3361-x
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    References listed on IDEAS

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    1. Ashkanasy, Neal M. & Windsor, Carolyn A. & Treviño, Linda K., 2006. "Bad Apples in Bad Barrels Revisited: Cognitive Moral Development, Just World Beliefs, Rewards, and Ethical Decision-Making," Business Ethics Quarterly, Cambridge University Press, vol. 16(4), pages 449-473, October.
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    4. 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.
    5. Walumbwa, Fred O. & Mayer, David M. & Wang, Peng & Wang, Hui & Workman, Kristina & Christensen, Amanda L., 2011. "Linking ethical leadership to employee performance: The roles of leader-member exchange, self-efficacy, and organizational identification," Organizational Behavior and Human Decision Processes, Elsevier, vol. 115(2), pages 204-213, July.
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    7. Sarah Fischbach, 2015. "Ethical Efficacy as a Measure of Training Effectiveness: An Application of the Graphic Novel Case Method Versus Traditional Written Case Study," Journal of Business Ethics, Springer, vol. 128(3), pages 603-615, May.
    8. Mayer, David M. & Kuenzi, Maribeth & Greenbaum, Rebecca & Bardes, Mary & Salvador, Rommel (Bombie), 2009. "How low does ethical leadership flow? Test of a trickle-down model," Organizational Behavior and Human Decision Processes, Elsevier, vol. 108(1), pages 1-13, January.
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    Cited by:

    1. Zhen Wang & Lu Xing & Haoying Xu & Sean T. Hannah, 2021. "Not All Followers Socially Learn from Ethical Leaders: The Roles of Followers’ Moral Identity and Leader Identification in the Ethical Leadership Process," Journal of Business Ethics, Springer, vol. 170(3), pages 449-469, May.
    2. Shuwen Li & Ruiqian Jia & Juergen H. Seufert & Jinlian Luo & Rui Sun, 2023. "You may not reap what you sow: How and when ethical leadership promotes subordinates’ online helping behavior," Asia Pacific Journal of Management, Springer, vol. 40(4), pages 1683-1702, December.
    3. Emmanuel Osafo & Amy Paros & Robert M. Yawson, 2021. "Valence–Instrumentality–Expectancy Model of Motivation as an Alternative Model for Examining Ethical Leadership Behaviors," SAGE Open, , vol. 11(2), pages 21582440211, June.

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