IDEAS home Printed from https://ideas.repec.org/a/zna/indecs/v16y2018i1p71-87.html
   My bibliography  Save this article

The Nexus of Ethical Leadership, Job Performance, and Turnover Intention: The Mediating Role of Job Satisfaction

Author

Listed:
  • Imran Shafique

    (COMSATS Institute of Information Technology, Department of Management Sciences, Lahore, Pakistan)

  • Masood N. Kalyar

    (Government College University Faisalabad, Faculty of Economics & Management Sciences, Department of Business Administration, Faisalabad, Pakistan)

  • Bashir Ahmad

    (Government College University Faisalabad, Faculty of Economics & Management Sciences, Department of Business Administration, Faisalabad, Pakistan)

Abstract

This study aims to examine the impact of ethical leadership on employees' job satisfaction, job performance, and turnover intention. A conceptual framework is developed which integrates job satisfaction as a mediating mechanism in explaining the nexus among ethical leadership, employee job performance, and turnover intention. The proposed model is tested by using the data collected from a sample (n = 196) of tourist companies in Pakistan. The results reveal that ethical leadership has a positive effect on employees' job satisfaction, job performance and negative effect on employees' turnover intentions. Further, job satisfaction mediates the effect of ethical leadership on employees' job performance and turnover intentions. The findings recommend that the demonstration of ethical leadership behaviours by managers at the workplace increases the likelihood of employees' job satisfaction and performance, while reducing their intention to leave the job. This study elucidates that, in Pakistani tourism sector, ethical leadership plays a key role in achieving performance goals. Future research could analyse the said nexus in different sectors and across different cultures while considering other measures of individual performance. The originality of this study is theorizing as well as empirically testing the intervening mechanism of job satisfaction in probing the linkages among ethical leadership, job performance, and turnover intention in Pakistani workplace context.

Suggested Citation

  • Imran Shafique & Masood N. Kalyar & Bashir Ahmad, 2018. "The Nexus of Ethical Leadership, Job Performance, and Turnover Intention: The Mediating Role of Job Satisfaction," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 16(1), pages 71-87.
  • Handle: RePEc:zna:indecs:v:16:y:2018:i:1:p:71-87
    as

    Download full text from publisher

    File URL: http://indecs.eu/2018/indecs2018-pp71-87.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. James Avey & Tara Wernsing & Michael Palanski, 2012. "Exploring the Process of Ethical Leadership: The Mediating Role of Employee Voice and Psychological Ownership," Journal of Business Ethics, Springer, vol. 107(1), pages 21-34, April.
    2. Rosse, Joseph G. & Hulin, Charles L., 1985. "Adaptation to work: An analysis of employee health, withdrawal, and change," Organizational Behavior and Human Decision Processes, Elsevier, vol. 36(3), pages 324-347, December.
    3. Charles Pettijohn & Linda Pettijohn & A. Taylor, 2008. "Salesperson Perceptions of Ethical Behaviors: Their Influence on Job Satisfaction and Turnover Intentions," Journal of Business Ethics, Springer, vol. 78(4), pages 547-557, April.
    4. 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.
    5. Ozgur Demirtas & A. Akdogan, 2015. "The Effect of Ethical Leadership Behavior on Ethical Climate, Turnover Intention, and Affective Commitment," Journal of Business Ethics, Springer, vol. 130(1), pages 59-67, August.
    6. Joop J. Hox & Cora J. M. Maas & Matthieu J. S. Brinkhuis, 2010. "The effect of estimation method and sample size in multilevel structural equation modeling," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 64(2), pages 157-170, May.
    7. Brown, Michael E. & Trevino, Linda K. & Harrison, David A., 2005. "Ethical leadership: A social learning perspective for construct development and testing," Organizational Behavior and Human Decision Processes, Elsevier, vol. 97(2), pages 117-134, July.
    8. Dave Bouckenooghe & Asma Zafar & Usman Raja, 2015. "How Ethical Leadership Shapes Employees’ Job Performance: The Mediating Roles of Goal Congruence and Psychological Capital," Journal of Business Ethics, Springer, vol. 129(2), pages 251-264, June.
    9. Herman Wold, 1980. "Model Construction and Evaluation When Theoretical Knowledge Is Scarce," NBER Chapters, in: Evaluation of Econometric Models, pages 47-74, National Bureau of Economic Research, Inc.
    10. Treviño, Linda Klebe & Butterfield, Kenneth D. & McCabe, Donald L., 1998. "The Ethical Context in Organizations: Influences on Employee Attitudes and Behaviors," Business Ethics Quarterly, Cambridge University Press, vol. 8(3), pages 447-476, July.
    11. Jay Mulki & Jorge Jaramillo & William Locander, 2008. "Effect of Ethical Climate on Turnover Intention: Linking Attitudinal- and Stress Theory," Journal of Business Ethics, Springer, vol. 78(4), pages 559-574, April.
    12. Yau-De Wang & Conna Yang, 2016. "How Appealing are Monetary Rewards in the Workplace? A Study of Ethical Leadership, Love of Money, Happiness, and Turnover Intention," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(3), pages 1277-1290, December.
    13. Scott Vitell & Encarnación Ramos & Ceri Nishihara, 2010. "The Role of Ethics and Social Responsibility in Organizational Success: A Spanish Perspective," Journal of Business Ethics, Springer, vol. 91(4), pages 467-483, February.
    14. Wynne W. Chin & Barbara L. Marcolin & Peter R. Newsted, 2003. "A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion/Adoption Study," Information Systems Research, INFORMS, vol. 14(2), pages 189-217, June.
    15. Valentine, Sean & Greller, Martin M. & Richtermeyer, Sandra B., 2006. "Employee job response as a function of ethical context and perceived organization support," Journal of Business Research, Elsevier, vol. 59(5), pages 582-588, May.
    16. Mitchell Neubert & Dawn Carlson & K. Kacmar & James Roberts & Lawrence Chonko, 2009. "The Virtuous Influence of Ethical Leadership Behavior: Evidence from the Field," Journal of Business Ethics, Springer, vol. 90(2), pages 157-170, December.
    17. 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.
    18. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qiangzhen Jian & Xiuting Wang & Hisham Mohammad Al-Smadi & Aamer Waheed & Alina Badulescu & Sarminah Samad, 2022. "Proposing a Robust Model to Reduce Employees’ Turnover Intentions in an Ethical Leadership Framework: Empirical Evidence from the Healthcare Sector," IJERPH, MDPI, vol. 19(15), pages 1-20, July.
    2. Li Ma & Yue Cao & Dake Jiang & Yang Gao & Xiaomin Du, 2020. "Does ethics really matter to the sustainability of new ventures? The relationship between entrepreneurial ethics, firm visibility and entrepreneurial performance," PLOS ONE, Public Library of Science, vol. 15(1), pages 1-23, January.
    3. Jiajing Shao & Jacob Cherian & Li Xu & Muhammad Zaheer & Sarminah Samad & Ubaldo Comite & Liana Mester & Daniel Badulescu, 2022. "A CSR Perspective to Drive Employee Creativity in the Hospitality Sector: A Moderated Mediation Mechanism of Inclusive Leadership and Polychronicity," Sustainability, MDPI, vol. 14(10), pages 1-22, May.
    4. repec:thr:techub:10015:y:2021:i:1:p:400-426 is not listed on IDEAS
    5. Rana Muhammad Shahid Yaqub & Shanayyara Mahmood & Nazim Hussain & H. Azhar Sohail, 2021. "Ethical Leadership And Turnover Intention: A Moderated Mediation Model Of Job Embeddedness And Organizational Commitment," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(1), pages 66-83, March.
    6. Salih Katircioglu & Huseyin Arasli & Mehmet Necati Cizreliogullari, 2022. "The Role of Ethical Leadership in Psychological Capital and Job Satisfaction of Immigrant Workers: Evidence From the Hotel Industry of Cyprus," SAGE Open, , vol. 12(3), pages 21582440211, July.
    7. Hanna Choi & Sujin Shin, 2022. "The Factors That Affect Turnover Intention According to Clinical Experience: A Focus on Organizational Justice and Nursing Core Competency," IJERPH, MDPI, vol. 19(6), pages 1-12, March.

    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. Pablo Ruiz-Palomino & Ricardo Martínez-Cañas & Joan Fontrodona, 2013. "Ethical Culture and Employee Outcomes: The Mediating Role of Person-Organization Fit," Journal of Business Ethics, Springer, vol. 116(1), pages 173-188, August.
    2. 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.
    3. Akanksha Bedi & Can M. Alpaslan & Sandy Green, 2016. "A Meta-analytic Review of Ethical Leadership Outcomes and Moderators," Journal of Business Ethics, Springer, vol. 139(3), pages 517-536, December.
    4. Omar S. Itani & Fernando Jaramillo & Larry Chonko, 2019. "Achieving Top Performance While Building Collegiality in Sales: It All Starts with Ethics," Journal of Business Ethics, Springer, vol. 156(2), pages 417-438, May.
    5. Yidong Tu & Xinxin Lu & Yue Yu, 2017. "Supervisors’ Ethical Leadership and Employee Job Satisfaction: A Social Cognitive Perspective," Journal of Happiness Studies, Springer, vol. 18(1), pages 229-245, February.
    6. Pablo Ruiz-Palomino & Ricardo Martínez-Cañas, 2014. "Ethical Culture, Ethical Intent, and Organizational Citizenship Behavior: The Moderating and Mediating Role of Person–Organization Fit," Journal of Business Ethics, Springer, vol. 120(1), pages 95-108, March.
    7. Q. Miao & A. Newman & J. Yu & L. Xu, 2013. "The Relationship Between Ethical Leadership and Unethical Pro-Organizational Behavior: Linear or Curvilinear Effects?," Journal of Business Ethics, Springer, vol. 116(3), pages 641-653, September.
    8. Dave Bouckenooghe & Asma Zafar & Usman Raja, 2015. "How Ethical Leadership Shapes Employees’ Job Performance: The Mediating Roles of Goal Congruence and Psychological Capital," Journal of Business Ethics, Springer, vol. 129(2), pages 251-264, June.
    9. Vishag Badrinarayanan & Indu Ramachandran & Sreedhar Madhavaram, 2019. "Mirroring the Boss: Ethical Leadership, Emulation Intentions, and Salesperson Performance," Journal of Business Ethics, Springer, vol. 159(3), pages 897-912, October.
    10. S. Hansen & Bradley Alge & Michael Brown & Christine Jackson & Benjamin Dunford, 2013. "Ethical Leadership: Assessing the Value of a Multifoci Social Exchange Perspective," Journal of Business Ethics, Springer, vol. 115(3), pages 435-449, July.
    11. Tran Quang Bao Phuc & Khalida Parveen & Duyen Thi Truc Tran & Dao Thi Anh Nguyen, 2021. "The linkage between ethical leadership and lecturer job satisfaction at a private higher education institution in Vietnam," Journal of Social Sciences Advancement, Science Impact Publishers, vol. 2(2), pages 39-50.
    12. Chenghao Men & Patrick S. W. Fong & Weiwei Huo & Jing Zhong & Ruiqian Jia & Jinlian Luo, 2020. "Ethical Leadership and Knowledge Hiding: A Moderated Mediation Model of Psychological Safety and Mastery Climate," Journal of Business Ethics, Springer, vol. 166(3), pages 461-472, October.
    13. Robert Cialdini & Yexin Jessica Li & Adriana Samper & Ned Wellman, 2021. "How Bad Apples Promote Bad Barrels: Unethical Leader Behavior and the Selective Attrition Effect," Journal of Business Ethics, Springer, vol. 168(4), pages 861-880, February.
    14. Colina Frisch & Markus Huppenbauer, 2014. "New Insights into Ethical Leadership: A Qualitative Investigation of the Experiences of Executive Ethical Leaders," Journal of Business Ethics, Springer, vol. 123(1), pages 23-43, August.
    15. Rita Paralta & Eduardo Simões & Ana Patrícia Duarte, 2023. "Subjective Well-Being in Organizations: Effects of Internal Ethical Context and Ethical Leadership," IJERPH, MDPI, vol. 20(5), pages 1-17, March.
    16. Yuhyung Shin, 2012. "CEO Ethical Leadership, Ethical Climate, Climate Strength, and Collective Organizational Citizenship Behavior," Journal of Business Ethics, Springer, vol. 108(3), pages 299-312, July.
    17. Damini Saini & Sunita Singh Sengupta, 2021. "Leading the Indian Managers to Satisfaction: The Mediating Role of Ethical Climate," Global Business Review, International Management Institute, vol. 22(2), pages 485-499, April.
    18. Conna Yang, 2014. "Does Ethical Leadership Lead to Happy Workers? A Study on the Impact of Ethical Leadership, Subjective Well-Being, and Life Happiness in the Chinese Culture," Journal of Business Ethics, Springer, vol. 123(3), pages 513-525, September.
    19. Dan Wang & Taiwen Feng & Alan Lawton, 2017. "Linking Ethical Leadership with Firm Performance: A Multi-dimensional Perspective," Journal of Business Ethics, Springer, vol. 145(1), pages 95-109, September.
    20. Shirel Damti & Guy Hochman, 2022. "Personality Characteristics as Predictors of the Leader’s Ethical Leadership in Regular Times and in Times of Crisis," Sustainability, MDPI, vol. 14(16), pages 1-17, August.

    More about this item

    Keywords

    ethical leadership; job performance; turnover intention; job satisfaction;
    All these keywords.

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

    Statistics

    Access and download statistics

    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:zna:indecs:v:16:y:2018:i:1:p:71-87. 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: Josip Stepanic (email available below). General contact details of provider: .

    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.