Impact of Ethical Leadership on Organizational Cronyism through Mediating Role of Ethical Culture and Moderating Role of Leader Member Exchange

The purpose of this study is to develop a mediation model for understanding how ethical leadership influences organizational cronyism via ethical culture. This study further investigates the role of leader–member exchange in moderating the effects of ethical culture on organizational cronyism. In...

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Main Authors: Adnan Riaz, Shams u Zaman
Format: Article
Language:English
Published: Johar Education Society 2018-12-01
Series:Pakistan Journal of Commerce and Social Sciences
Subjects:
Online Access:http://jespk.net/publications/4317.pdf
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author Adnan Riaz
Shams u Zaman
author_facet Adnan Riaz
Shams u Zaman
author_sort Adnan Riaz
collection DOAJ
description The purpose of this study is to develop a mediation model for understanding how ethical leadership influences organizational cronyism via ethical culture. This study further investigates the role of leader–member exchange in moderating the effects of ethical culture on organizational cronyism. In contrast to previous research, which has examined the direct effects of ethical leadership on ethical culture, our study examined the underlying mediated and moderated mechanism. A representative sample of 306 employees was collected from organizations operating in private sector. Inferential statistics was applied with the help of descriptive, correlation, moderated and mediated regression analysis. Results confirmed all the direct hypothesis as well as the mediating role of ethical culture was substantiated between ethical leadership and organizational cronyism. LMX also moderated the inverse relationship between ethical culture and organizational cronyism such that the relationship was stronger for employees enjoying high leader member exchange relationship. Discussion and implications are presented based on the results of the study.
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spelling doaj.art-dee933fbf66647c09a669edc0bf040812022-12-21T19:44:52ZengJohar Education SocietyPakistan Journal of Commerce and Social Sciences1997-85532309-86192018-12-01123831850Impact of Ethical Leadership on Organizational Cronyism through Mediating Role of Ethical Culture and Moderating Role of Leader Member ExchangeAdnan Riaz 0Shams u Zaman 1Department of Business Administration, Allama Iqbal Open University Islamabad, PakistanArmy Public College of Management and Sciences, Rawalpindi, PakistanThe purpose of this study is to develop a mediation model for understanding how ethical leadership influences organizational cronyism via ethical culture. This study further investigates the role of leader–member exchange in moderating the effects of ethical culture on organizational cronyism. In contrast to previous research, which has examined the direct effects of ethical leadership on ethical culture, our study examined the underlying mediated and moderated mechanism. A representative sample of 306 employees was collected from organizations operating in private sector. Inferential statistics was applied with the help of descriptive, correlation, moderated and mediated regression analysis. Results confirmed all the direct hypothesis as well as the mediating role of ethical culture was substantiated between ethical leadership and organizational cronyism. LMX also moderated the inverse relationship between ethical culture and organizational cronyism such that the relationship was stronger for employees enjoying high leader member exchange relationship. Discussion and implications are presented based on the results of the study.http://jespk.net/publications/4317.pdfethical leadershipethical cultureorganizational cronyismleader member exchangeprivate sectorpakistan
spellingShingle Adnan Riaz
Shams u Zaman
Impact of Ethical Leadership on Organizational Cronyism through Mediating Role of Ethical Culture and Moderating Role of Leader Member Exchange
Pakistan Journal of Commerce and Social Sciences
ethical leadership
ethical culture
organizational cronyism
leader member exchange
private sector
pakistan
title Impact of Ethical Leadership on Organizational Cronyism through Mediating Role of Ethical Culture and Moderating Role of Leader Member Exchange
title_full Impact of Ethical Leadership on Organizational Cronyism through Mediating Role of Ethical Culture and Moderating Role of Leader Member Exchange
title_fullStr Impact of Ethical Leadership on Organizational Cronyism through Mediating Role of Ethical Culture and Moderating Role of Leader Member Exchange
title_full_unstemmed Impact of Ethical Leadership on Organizational Cronyism through Mediating Role of Ethical Culture and Moderating Role of Leader Member Exchange
title_short Impact of Ethical Leadership on Organizational Cronyism through Mediating Role of Ethical Culture and Moderating Role of Leader Member Exchange
title_sort impact of ethical leadership on organizational cronyism through mediating role of ethical culture and moderating role of leader member exchange
topic ethical leadership
ethical culture
organizational cronyism
leader member exchange
private sector
pakistan
url http://jespk.net/publications/4317.pdf
work_keys_str_mv AT adnanriaz impactofethicalleadershiponorganizationalcronyismthroughmediatingroleofethicalcultureandmoderatingroleofleadermemberexchange
AT shamsuzaman impactofethicalleadershiponorganizationalcronyismthroughmediatingroleofethicalcultureandmoderatingroleofleadermemberexchange