Tahe nejad, A.; Seyed Gho ban, Z.; Raja A i in, R. N.; Babaei, H.
A icle
E hical leade ship and employee-o ganisa ional ou comes
in he ho el indus y
Sou h A ican Jou nal o Business Managemen
P o ided in Coope a ion wi h:
Uni e si y o S ellenbosch Business School (USB), Bell ille, Sou h A ica
Sugges ed Ci a ion: Tahe nejad, A.; Seyed Gho ban, Z.; Raja A i in, R. N.; Babaei, H. (2015) : E hical
leade ship and employee-o ganisa ional ou comes in he ho el indus y, Sou h A ican Jou nal o
Business Managemen , ISSN 2078-5976, A ican Online Scien i ic In o ma ion Sys ems (AOSIS),
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E hical leade ship and employee-o ganisa ional ou comes
in he ho el indus y
A. Tahe nejada*, Z. Seyed Gho banb, R.N. Raja A i inc and H. Babaeid
aFacul y o Economics and Adminis a ion, Uni e si y o Malaya (UM), Malaysia
bFacul y o Business and Economics, Monash Uni e si y, Aus alia
cFacul y o Economics and Adminis a ion, Uni e si y o Malaya (UM), Malaysia
dUni e si y o Teh an, I an
*To whom all co espondence should be add essed
[email p o ec ed]
E hical leade ship has been a ac ing a en ion o di e en kinds. While he concep is s ill in i s in ancy, con ibu ion
om all aspec s o business and managemen is equi ed o examine he c oss-sec ional, c oss-cul u al applicabili y o
p o ide u he insigh s. A emp s ha e been made o heo e ically and empi ically examine he ela ionship be ween
e hical leade ship and se e al ou comes (e.g. job sa is ac ion, o ganisa ional commi men ), howe e , mos o hese
s udies ha e been conduc ed in wes e n coun ies. This calls o u he analysis o his pa icula leade ship s yle o ill
he exis ing gap and en ich he li e a u e. Using 183 samples om middle manage s/supe iso s in he ho el indus y in
Malaysia, he p esen s udy ound ha e hical leade ship is posi i ely and signi ican ly ela ed o bo h job sa is ac ion and
o ganisa ional commi men among hese middle manage s, which hen esul ed in nega i e u no e and posi i e
o ganisa ional ci izenship beha io s amongs hem. While, con ibu ing signi ican ly o he cu en li e a u e on e hical
leade ship in he hospi ali y indus y, his esea ch also p o ides suppo o he no ion o cons uc i e consequences o
leade s becoming ole models in hei o ganisa ions by ollowing e hical s anda ds in hei beha io s and decision-
making p ocess.
In oduc ion
E hics and e hical beha iou s ha e been gaining ex ensi e
a en ion om bo h p ac i ione s and esea che s o di e en
kinds due o he publici y o he cu en scandals and hei
nega i e impac s on business communi ies, indus ies, and
many people (Ve schoo , 2006, 2007). Recen e hical
misconduc s such as En on, Wo ldComm, and Penn S a e
Uni e si y scandals (Jennings, 1999; Lang a d , 2012;
McC aw, Mo ei , & O'Malley, 2009; Russell & Smi h,
2003) imply he emendous des uc i e e ec s o une hical
beha iou s on o ganisa ions and upon on people.
Leade s in o ganisa ions a e he i s o a ge i e hical
misconduc s a e ound (McC aw e al., 2009), since i is
a gued ha hey a e o be la gely blamed o any une hical
inciden s in o ganisa ions (Ve schoo , 2007). To jus i y his
ep oach, i is belie ed ha employees’ adhe ence o e hical
conduc is highly dependen on ha o hei manage s and
di ec supe iso s (Ve schoo , 2007). On he o he hand,
becoming e hical ole models in o ganisa ions enable leade s
o p omo e e hical cul u e amongs hei subo dina es
(Hun e , 2008). Thus, leade s need o ac and beha e
e hically in hei o ganisa ions as esea ch indica es ha he
mos success ul o ganisa ions a e hose wi h e hical ack
eco d (Wins on, 2007).
B own, T e iño, and Ha ison (2005) ha e pionee ed in
s udying and concep ualising a dis inc leade ship s yle
known as e hical leade ship. This ype o leade ship, while
being ela i ely new, has been gaining schola s’ a en ions
(Gallaghe & Tschudin, 2010; Maye , Kuenzi, G eenbaum,
Ba des, & Sal ado , 2009; S enma k & Mum o d, 2011) o
in es iga e how i plays an in luen ial ole o imp o e
o ganisa ional pe o mance and he e o e a oid any
misconduc s in he wo k en i onmen . Lee and Cheng
(2010) explo ed ai s o leade ship in imp o ing manage ial
e hics in public ela ions and a gued ha he e a e 3 salien
ai s o an ideal leade as “pe sonal e hics”, “in e pe sonal
beha iou s”, and “a icula ion o e hical s anda ds”. They
belie e ha hese ai s can lead o knowledge ans e
acili a ion o e hics in public ela ion o ganisa ions. O he s
in simila ways a gue ha e hical leade ship leads o
pe cei ed e ec i eness o op manage s and b ing mo e
op imism among employees wi h ega d o he u u e o
hei o ganisa ion (De Hoogh & Den Ha og, 2008).
D awing om ecen empi ical in es iga ions on e hical
leade ship and i s ela ionship wi h di e en o ganisa ional
ou comes such as job sa is ac ion, o ganisa ional
commi men , and o ganisa ional ci izenship beha iou
(Maye e al., 2009; Ruiz-Palomino, Ruiz-Amaya, & Knö ,
2011; Walumbwa e al., 2011), an a gumen can be buil in
ega d o i s applicabili y and in luen ial ole in a di e en
se ings han hose ha ha e conduc ed so a , since
leade ship is belie ed o be a uni e sal phenomenon and o
ansla e ac oss cul u es (Bass, 1997). Few s udies a e
a ailable ha ha e ied o es ablish c oss-cul u al
90 S.A .J.Bus.Manage.2015,46(2)
applicabili y and gene alisabili y o e hical leade ship in a
non-US and a non-wes e n con ex , which p o ides u he
jus i ica ion o conduc he cu en esea ch.
Mo eo e , s udies a ge ing e hical leade ship in he
hospi ali y indus y a e sca ce (e.g. Kim & B yme , 2011)
and an addi ional inqui y is equi ed o en ich he ele an
li e a u e in his pa icula indus y. I is impo an o s udy
e hical leade ship in di e en indus ial se ings as e idence
indica es he subs an ial in luence o une hical leade ship o
e hical misconduc on he u u e o any o ganisa ions (e.g.
Lang a d , 2012). Conside he Penn S a e scandal, in which
leade s’ ailu e o ake se ious measu ed ac ions agains
illainous beha iou o a o me bu ac i ely p esen
employee led o a g a e scandal (Lang a d , 2012). We
belie e ha leade s a e able o se e y speci ic examples
and beha iou al models o hei employees a oiding public
shame and u he inancial and non- inancial bu dens
esul ing om i .
The main objec i e o his s udy is, he e o e, o empi ically
examine e hical leade ship in he ho el indus y in a non-
wes e n coun y such as Malaysia o ill he exis ing gap,
and o examine how becoming a ole model boos s
employee-o ganisa ional ou comes such as commi men ,
sa is ac ion, and ci izenship beha iou in a di e en se ing.
This would also assis o es ablish he c oss-cul u al alidi y
and applicabili y o e hical leade ship. Malaysia is
conside ed o be one o he mos a ac i e ou is
des ina ions in he wo ld oday. Howe e , ecen scandals in
Malaysia such as he one conce ning he bank o ice
a es ed o c edi ca ds o ge y (The S a Online, 2012a),
and he mo e ecen scandal ega ding he o me c edi
manage o a ho el who has been sen enced o 12 yea s
imp isonmen o illegally ans e ing nea ly 300,000
Malaysia Ringgi (equi alen o almos 100,000 USD) o he
own c edi ca d accoun om ho el gues s (Ta iq, 2012),
also encou age one o s udy e hical leade ship in his
coun y o ind ou he o e all gains. In his s udy, he main
in e es is o ocus on middle le el manage s/supe iso s o
in es iga e wha hey hink o hei supe io s in hei
espec i e o ganisa ions in e ms o ollowing e hical code
o conduc s in hei beha iou and decision making p ocess.
The eason o choose middle le el manage s/supe iso s is
ha hey a e mo e suscep ible o unde s and wha he op
leade s do in he o ganisa ion, and hei ealisa ions o op
leade s’ e hical code o conduc s would be mo e accu a e
due o hei hie a chical p oximi y o he leade s.
Backg ound o he li e a u e and hypo heses
de elopmen
E hical leade ship is de ined as “ he demons a ion o
no ma i ely app op ia e conduc h ough pe sonal ac ions
and in e pe sonal ela ionships, and he p omo ion o such
conduc o ollowe s h ough wo-way communica ion,
ein o cemen , and decision-making” (B own e al., 2005:
120). This de ini ion comp ises o ou componen s as 1)
ollowe s and employees conside e hical leade s o p esen
beha iou s such as ai ness, ca e, hones y, us wo hiness,
e c. in which hese leade s become ole models o hei
subo dina es; 2) e hics is he p ima y a en ion in he social
en i onmen and he e hical leade s p o ide oice o hei
ollowe s, which is in e ed as an in e pe sonally ai -
minded p ocedu e (Bass & S eidlmeie , 1999; Howell &
A olio, 1992); 3) e hical s anda ds a e se by e hical leade s,
e hical conduc s would be ewa ded and de ia ion o e hical
conduc s would be disciplined acco dingly (Gini, 1998;
T e iño, B own, & Ha man, 2003); and 4) e hical
consequences o he decisions made by e hical leade s
should be conside ed by hose leade s in such a ai and
p incipled way ha could be imi a ed and obse ed by
o he s (Bu ns, 1978; Howell & A olio, 1992).
S udying wha B own, e al. (2005) ha e concep ualised as
e hical leade ship s yle has been a ac ing schola s’
a en ion (e.g. Ma in, Resick, Kea ing, & Dickson, 2009;
Walumbwa e al., 2011). Simila o o he leade ship s yles,
di e en aspec s o his pa icula ype o leade ship need o
be in es iga ed o ind ou how and o wha ex en i bene i s
people and o ganisa ions. The e a e a ious s udies ha ha e
in es iga ed he concep o e hical leade ship and he ela ed
issues in he domain o gene al managemen (B own &
T e iño, 2006; B own e al., 2005; Cullen, Pa bo eeah, &
Vic o , 2003; Neube , Ca lson, Kacma , Robe s, &
Chonko, 2009; T e iño, B own, & Ha man, 2003);
howe e , B own and T e ino (2006) speci ically a gued ha
e hical leade ship impac s se e al o ganisa ional ou comes
such as ollowe e hical decision making, ollowe
sa is ac ion, commi men , and hei engagemen o pu in
ex a e o . Subsequen examina ions ha e p o ided suppo
o his no ion, and sugges ha e hical leade ship is di ec ly
and indi ec ly ela ed o ollowe s’ job sa is ac ion and
o ganisa ional commi men (e.g. Kim & B yme , 2011;
Neube e al., 2009), hei lowe u no e in en ion (e.g.
Kim & B yme , 2011) and highe o ganisa ional ci izenship
beha iou (e.g. Ruiz-Palomino e al., 2011).
The exis ing a gumen s indica e he signi ican ole o
e hical codes in di e en hospi ali y sec o s (Coughlan,
2001; Kincaid, Baloglu, & Co sun, 2008; S e ens, 1997);
none heless s udying e hical leade ship as B own e al.
(2005) ha e concep ualised would no only en ich he
li e a u e in he domain o gene al managemen , bu would
also p o ide u he insigh s in he hospi ali y indus y poin
o iew.
Job sa is ac ion is de ined as “a pleasu able o posi i e
emo ional s able esul ing om he app aisal o one’s job as
achie ing o acili a ing one’s job alue. (Locke, 1969:
316). I s posi i e ela ionship wi h e hical leade ship has
been pos ula ed (B own & T e iño, 2006; B own e al.,
2005) and u he examina ions ha e also p o ided
empi ical e idence suppo ing his ela ionship in o he
indus ies (e.g. Neube e al., 2009). As p e iously
explained, leade s who discipline w ongdoings and ea
hei ollowe s ai ly, would conside ably enhance job
sa is ac ion among hei ollowe s (B own e al., 2005).
Re e ing o he abo e pos ula ion and empi ical suppo s,
same logical in e ence can be d awn o he posi i e
ela ionship be ween e hical leade ship and employee job
S.A .J.Bus.Manage.2015,46(2) 91
sa is ac ion in he ho el indus y as one majo sec o o he
hospi ali y indus y in Malaysia. We, he e o e, p opose he
ollowing hypo hesis:
Hypo hesis 1: E hical leade ship o op manage s is
posi i ely ela ed o middle le el manage s’ job
sa is ac ion.
Leade ship-commi men link ha e long been in es iga ed
and he indings sugges he ela ionship be ween leade ship
and commi men is posi i e and signi ican (e.g. Ba ling,
Webe , & Kelloway, 1996; Bycio, Hacke , & Allen, 1995;
Podsako , Todo , G o e , & Hube , 1984). E hical
leade ship can impac o ganisa ional commi men in a
simila way as e hical leade s a e commi ed o pa icula
code o conduc s in hei beha iou s and could be in luen ial
on hei subo dina es’ beha iou s such as enhancing hei
le el o a ec i e commi men . Allen and Meye (1990)
de ined h ee cons uc s o o ganisa ional commi men as
“a ec i e”, “con inuance”, and “no ma i e” commi men .
A ec i e commi men is ega ded as he mos widesp ead
o m o o ganisa ional commi men (Allen & Meye , 1990;
Meye & Allen, 1987) and conside ed as one being
emo ionally and e ec i ely a ached o his/he o ganisa ion
and iden i ies him/he sel wi h i while enjoying he
membe ship in he o ganisa ion (Meye & Allen, 1997;
Meye , Allen, & Smi h, 1993).
The a gumen ega ding he posi i e and signi ican
ela ionship be ween e hical leade ship and o ganisa ional
commi men is suppo ed by wha B own and T e iño
(2006) posi ed as he di ec ela ionship o e hical leade ship
wi h ollowe s’ o ganisa ional commi men and by he
empi ical e idence ha suppo s his ela ionship (Kim &
B yme , 2011; Neube e al., 2009). D awing om he
abo e discussion we, hen, hypo hesise ha :
Hypo hesis 2: E hical leade ship o op manage s is
posi i ely ela ed o middle le el manage s’
o ganisa ional commi men .
The p io esea ch suppo he posi i e ela ionship be ween
job sa is ac ion and a ec i e o ganisa ional commi men
(e.g. Ma hieu & Zajac, 1990), and he causal ela ionship
has been es ablished in di e en li e a u es (Fle che &
Williams, 1996; Yang, 2010). Findings also suppo ha
employees wi h g ea e job sa is ac ion end o ha e highe
a ec i e commi men in hospi ali y indus y (Kim &
B yme , 2011; Kim, Leong, & Lee, 2005). Based on he
p e ious esul s, we p opose ha :
Hypo hesis 3: Middle le el manage s’ job sa is ac ion is
posi i ely ela ed o hei a ec i e commi men .
Bo h job sa is ac ion and a ec i e commi men ha e been
demons a ed o ha e nega i e ela ionship wi h u no e
in en ion. Job sa is ac ion is conside ed as an impo an
p edic o o u no e in en ion (Williams & Haze , 1986)
and employees wi h highe job sa is ac ion end o ha e
lowe in en ion o lea e hei o ganisa ions (Chen, 2006;
Eugenia, Sanz Valle, & A agón, 2007; Schwepke J , 2001).
On he o he hand, he nega i e ela ionship be ween
o ganisa ional commi men and u no e in en ion has been
subs an ia ed in se e al li e a u e; and empi ical esea ch
also p o ide suppo o he no ion ha employees’ highe
a ec i e commi men leads o hei lowe in en ion o lea e
hei o ganisa ions (Colbe & Kwon, 2000; Kim & B yme ,
2011; Schwepke J , 2001).
Based on he abo e discussions, we p opose he ollowing
hypo heses:
Hypo hesis 4: Middle le el manage s’ job sa is ac ion is
nega i ely ela ed o hei u no e in en ion.
Hypo hesis 5: Middle le el manage s’ a ec i e
commi men is nega i ely ela ed o hei u no e
in en ion.
O ganisa ional ci izenship beha iou is explained as an
impo an phenomenon in he wo k en i onmen o enhance
employee’s social and psychological a achmen o hei
o ganisa ions (Podsako , MacKenzie, Paine, & Bach ach,
2000; Ruiz-Palomino e al., 2011). B own, e al. (2005)
pos ula ed ha e hical leade ship could imp o e
subo dina es’ ex a e o s in o ganisa ions. Helping
beha iou , sha ing new ideas, being ex a in ol ed o he
success o he o ganisa ions (as di e en aspec s o
ci izenship beha iou s) a e all men ioned as he examples o
wha B own, e al. (2005) posi ed as ex a e o s (Ruiz-
Palomino e al., 2011).
While a emp s ha e been made o ela e e hical leade ship
o o ganisa ional ci izenship beha iou (Maye e al., 2009),
bo h job sa is ac ion and o ganisa ional commi men ha e
been empi ically shown o be impo an an eceden s o
o ganisa ional ci izenship beha iou (e.g. LePine, E ez, &
Johnson, 2002; Podsako e al., 2000). Empi ical indings
sugges ha employees wi h highe le el o job sa is ac ion
and commi men would engage ac i ely in hei
o ganisa ions (Ruiz-Palomino e al., 2011). O ganisa ional
ci izenship beha iou has also been shown o be he
consequence o bo h job sa is ac ion and o ganisa ional
commi men (e.g. Hacke , Fa h, Song, & Lapie e, 2003).
Acco dingly, we hypo hesise he ollowing:
Hypo hesis 6: Middle le el manage s’ job sa is ac ion is
posi i ely ela ed o hei o ganisa ional ci izenship
beha iou .
Hypo hesis 7: Middle le el manage s’ a ec i e
commi men is posi i ely ela ed o hei o ganisa ional
ci izenship beha iou .
92 S.A .J.Bus.Manage.2015,46(2)
Me hodology
Sample
To ob ain he desi ed samples o he pu pose o he cu en
s udy middle le el manage s in he ho el indus y in he ci y
o Kuala Lumpu we e eques ed o pa icipa e. This s udy
ied o include all le els o middle manage s in his
pa icula indus y anging om gene al manage s o
pu chasing manage s. The zones wi h ho el densi y wi hin
he same a ea we e iden i ied o collec he da a. These a eas
include, bu no limi ed o, Ci y Cen e, Golden T iangle,
Buki Bin ang, PWTC, and comp ise all kinds o ho els
(budge o luxu y) o be a ep esen a i e and gene alisable
sample.
Since his s udy ocused on s udying middle le el
manage s/supe iso s in he ho el indus y, collec ing he
da a would seem di icul o begin wi h, howe e
a angemen s we e made o engage in da a collec ion
p ocedu e. Fi s , he necessa y documen a ions we e
p esen ed when he i s con ac s we e made o cla i y he
pu pose o he isi . In almos e e y case, he ho el
concie ges we e app oached o his pu pose. They we e
explained he na u e and pu pose o he esea ch and asked
o make appoin men s wi h he people in cha ge, whe eby in
he majo i y o he cases, i was he gene al manage s. A e
u he cla i ica ions we e made ega ding he objec i es o
he s udy o hose manage s who ag eed o pa icipa e in
he s udy, h ee o i e copies o he ques ionnai es we e
p esen ed o hem o be collec ed la e a he a anged ime.
The con ac manage s we e eques ed o answe one o he
ques ionnai es and gi e he es o hei co-wo ke s, who
we e holding manage ial posi ions o he same le els. The
manage s we e ensu ed ha he in o ma ion p o ided would
be kep con iden ial and used o esea ch pu pose only.
They we e also asked no o p o ide any pe sonal
in o ma ion wha soe e o ensu e he anonymi y o hei
esponses.
A e isi ing di e en ho els in di e en a eas o Kuala
Lumpu and dis ibu ing almos 300 ques ionnai es among
he middle manage s/supe iso s, we ecei ed 197
comple ed ques ionnai es (66%). As he con ac pe son was
eques ed o dis ibu e he es o he ques ionnai es among
his/he co-wo ke s in he same le els, in 24 cases only one
manage in a ho el illed he ques ionnai e ep esen ing 24
ho els. In he es o he cases, we ecei ed a leas 2
comple ed ques ionnai es om each ho el. We disca ded 14
ques ionnai es due o incomple e and inconsis en
in o ma ion p o ided, and included 183 alid esponses in
he da a analysis. The numbe o da a ecei ed is belie ed o
be enough and app op ia e o bo h ac o analysis and
hypo heses es ing. Based on he 20:1 subjec - o- a iables
a io p oposed by Hai , e al. (2010), his s udy by a
exceeded he numbe o samples equi ed o conduc ac o
analysis and hypo heses es ing.
The i s pa o he ques ionnai es de eloped o he cu en
s udy enqui ed he demog aphic in o ma ion o he
pa icipan s and is p esen ed in able 1.
Table 1: Desc ip i e s a is ics
Va iable
F equency
% o o al
Va iable
F equency
% o o al
Gende
Educa ion
Male
139
76.0
Some college
29
15.8
Female
44
24.0
Bachelo
140
76.5
Age
Mas e
14
7.7
20-30
3
1.6
Expe ience
31-40
71
38.8
1-10 yea s
52
28.4
41-50
97
53.0
11-20 yea s
89
48.6
>50
12
6.6
21-30 yea s
37
20.2
>30
5
2.7
Ins umen a ion
The second pa o he ques ionnai e de eloped o his
esea ch included he o al numbe o 29 ques ions. Ten
i ems adop ed om B own, e al. (2005) o measu e e hical
leade ship. To measu e a ec i e commi men , eigh i ems
de eloped by Meye and Allen (1991) was used. Job
sa is ac ion was measu ed using ou i ems de eloped by
Babakus e al. (2003). Th ee i ems we e adop ed om
Ka a epe and Uludag (2008) o measu e u no e in en ion.
O ganisa ional ci izenship beha iou was measu ed using
ou i ems adop ed om Ca dona, Law ence, and Ben le
(2004).
Resul s
Reliabili y and alidi y
Using C onbach’s Alpha eliabili y es , all ins umen s
appea ed o be accu a e in wha hey measu ed (α anging
om .91 o .95). Cons uc alidi y was subsequen ly
conduc ed using ac o analysis, con e gen alidi y, and
disc iminan alidi y. Fi s , explo a o y ac o analysis
(EFA) was conduc ed wi h p incipal componen analysis
de eloped by Ho eling (1935) and Va imax o a ion me hod
(Kaise , 1958) on all he a iables o de e mine he numbe
o ac o s. The condi ions o his analysis we e based on
wha Kaise (1958) sugges ed: “an Eigen alue g ea e han
one and an absolu e alue o ac o loading la ge han
0.50”. The analysis o all 29 i ems esul ed in 5 componen s

S.A .J.Bus.Manage.2015,46(2) 93
ex ac ion wi h Eigen alues g ea e han one. All ac o
loadings we e abo e 0.50, mee ing he c i e ia p oposed by
Kaise (1958) in conduc ing ac o analysis. Table 2 p esen s
he indings om he explo a o y ac o analysis.
Table 2: Explo a o y ac o analysis
Fac o
Ini ial
Eigen
alues
Ro a ion sums o squa ed loadings
To al
Pe cen age o
a iance
Cumula i e
pe cen age
1
17.132
6.866
23.675
23.675
2
1.740
5.837
20.126
43.801
3
1.215
3.510
12.105
55.906
4
1.137
3.364
11.537
67.443
5
1.034
2.699
9.307
76.750
No e: N= 183. Me hod: P incipal Componen Analysis wi h Va imax
o a ion
Con i ma o y ac o analysis (CFA) was pe o med using
AMOS 18.0 wi h maximum likelihood es ima ion
(A buckle, 2009). The esul s shown in able 3 es ablished
he cons uc alidi y. All loadings su passed 0.60 and all -
alues exceeded he accep ed le el o 1.96 (A buckle,
2009). All a e age a iance ex ac ed (AVE) we e abo e
0.50 and all composi e eliabili y (CR) exceed 0.70 (Hai e
al., 2010). Maximum sha ed squa ed a iance (MSV) and
a e age sha ed squa ed a iance (ASV) should bo h be less
han a e age a iance ex ac ed (AVE) o es ablish he
disc iminan alidi y (Hai e al., 2010).
Table 3: Desc ip ion s a is ics o CFA analysis
Va iable
Loadings
- alue
CR
AVE
MSV
ASV
E hical Leade ship
.951
.658
.619
.559
EL1
.82
Fixed
EL2
.83
13.55
EL3
.78
12.29
EL4
.84
13.91
EL5
.81
13.06
EL6
.79
12.50
EL7
.81
13.20
EL8
.79
12.50
EL9
.84
13.90
EL10
.80
12.83
Job Sa is ac ion
.909
.713
.587
.526
JS1
.83
Fixed
JS2
.89
14.87
JS3
.79
12.44
JS4
.86
14.18
A ec i e Commi men
.947
.692
.619
.583
AC1
.81
Fixed
AC2
.82
13.08
AC3
.79
12.43
AC4
.86
13.93
AC5
.88
14.59
AC6
.84
13.50
AC7
.83
13.25
AC8
.83
13.20
Tu no e In en ion
.941
.842
.511
.491
TI1
.94
Fixed
TI2
.90
20.59
TI3
.92
21.67
Ci izenship Beha iou
.954
.840
.615
.549
OCB1
.93
Fixed
OCB2
.92
22.27
OCB3
.92
22.22
OCB4
.89
20.00
2/d = 407.823/367= 1.111; SRMR= .029; GFI= .87; AGFI= .85; NFI= .92; CFI= .99; RMSEA= .025
Since his s udy collec ed he da a om one single sou ce,
he e migh be conce ns ega ding he common me hod bias.
Common me hod bias is belie ed o be insigni ican in his
s udy, since a la ge pe cen age o he a iance could no be
explained by one single gene al ac o (Podsako ,
MacKenzie, Lee, & Podsako , 2003).
S uc u al Model
S uc u al equa ion modelling using AMOS 18.0 wi h
maximum likelihood es ima ion (A buckle, 2009) was
de eloped o hypo heses es ing and he esul s ob ained a e
shown in he able 4.
94 S.A .J.Bus.Manage.2015,46(2)
Table 4: SEM pa hs esul s o he p oposed hypo heses
Hypo heses
S anda dised coe icien
- alue
Conclusion
H1
E hical Leade ship
®
Job Sa is ac ion
.75***
9.71
Suppo ed
H2
E hical Leade ship
®
A ec i e Commi men
.51***
6.07
Suppo ed
H3
Job Sa is ac ion
®
A ec i e Commi men
.38***
4.65
Suppo ed
H4
Job Sa is ac ion
®
Tu no e In en ion
-.31***
-3.30
Suppo ed
H5
A ec i e Commi men
®
Tu no e In en ion
-.49***
-5.06
Suppo ed
H6
Job Sa is ac ion
®
Ci izenship Beha iou
.31***
3.64
Suppo ed
H7
A ec i e Commi men
®
Ci izenship Beha iou
.56***
6.32
Suppo ed
Model Fi
2/d = 431.791/370= 1.167; SRMR= .039 GFI= .87; AGFI= .85; NFI= .92; CFI= .99; RMSEA= .030
*** p < 0.001
E hical leade ship ound o be posi i ely ela ed o bo h job
sa is ac ion and a ec i e o ganisa ional commi men
suppo ing hypo heses one and wo. Findings indica ed ha
job sa is ac ion was posi i ely and signi ican ly ela ed o
a ec i e o ganisa ional commi men , suppo ing hypo hesis
h ee. Bo h job sa is ac ion and a ec i e o ganisa ional
commi men we e nega i ely ela ed o u no e in en ion
p o iding suppo o hypo heses ou and i e. Wi h ega d
o hypo heses six and se en, bo h job sa is ac ion and
a ec i e o ganisa ional commi men we e ound o be
posi i ely and signi ican ly ela ed o o ganisa ional
ci izenship beha iou .
Conclusions and implica ions
This s udy se ou o add ess he issue o e hical leade ship
in a con ex di e en om hose p e iously in es iga ed.
The cu en s udy empi ically in es iga ed he concep o
e hical leade ship in he hospi ali y indus y ocusing on
middle le el manage s/supe iso s in di e en ho els in
Malaysia. Consequen ly, his esea ch ocused o in es iga e
how e hical leade ship could enhance bo h employee le el
ou comes (sa is ac ion and commi men ) and o ganisa ional
le el ou comes ( u no e in en ion and ci izenship
beha iou s). This con ibu ion o a ending o bo h le els o
ou comes makes his s udy a unique one in expanding bo h
heo e ical and p ac ical knowledge o s udying e hical
leade ship in he hospi ali y indus ies.
B own, e al. (2005) a gued ha e hical leade ship is
associa ed posi i ely wi h sa is ac ion wi h leade and wi h
job dedica ion. Fu he mo e, hese ela ionships ha e been
empi ically examined (e.g. Neube e al., 2009), and
a gumen s ega ding e hical leade ship being a signi ican
d i e o bo h employee sa is ac ion and commi men ha e
been suppo ed (e.g. Ruiz-Palomino e al., 2011). The
ou comes om he cu en s udy no only con o m o he
esul s o p io esea ch bu also ex end he e hical
leade ship applicabili y in he hospi ali y indus y in a non-
wes e n socie y ha a e consis en wi h he p e ious
indings. Resul s ob ained om his esea ch sugges he
posi i e and signi ican ela ionship o e hical leade ship
wi h bo h job sa is ac ion and a ec i e commi men .
B own and T e ino (2006) p oposed ha e hical leade s a e
conside ed o be ole models in complying wi h pa icula
e hical code o conduc s, which would subsequen ly lead o
employees exp essing posi i e beha iou s owa d hei
o ganisa ions by being mo e sa is ied and commi ed (Kim
& B yme , 2011; Neube e al., 2009; Ruiz-Palomino e al.,
2011). Findings, whils suppo his no ion, sugges ha
being a ole model is no limi ed o a pa icula indus y o
sec o and could be gene alised o o he kinds o
o ganisa ions. In e ing om hose esul s, i could be
a gued ha leade s a e able o os e he sense o sa is ac ion
and commi men among hei employees by becoming ole
models in hei o ganisa ions.
Fu he mo e, based on he de ini ions p o ided o job
sa is ac ion (Locke, 1969) and a ec i e commi men
(Meye & Allen, 1997), i could be a gued ha he
possibili y o sa is ied and commi ed employees engaging
in une hical incidences would be a less han hose who a e
no . Wha hese employees do is sa is ying and enjoying,
and hey a e eage o s ay and become commi ed o hei
o ganisa ion because hey wan o. This sense o pleasu e
and desi e o s ay amongs employees is deep oo ed in wha
hey obse e as a ole model in hei o ganisa ions, who
“ alks he alk” and “walks he walk” in e ms o being
e hically commi ed o he objec i e o he o ganisa ions.
This ole model makes and cla i ies he e hical jou ney o
he o ganisa ion by es ablishing he necessa y s anda ds.
He/she is a pionee in exp essing e hical beha iou s and
conduc ing e hical decision-makings, which would lead o
sa is ied and commi ed employees. These ole models,
while being a ge ed o any misconduc in o ganisa ions,
should also be c edi ed wi h any success ul e hical jou ney
because hey make his happen and b ing p ospe i y.
Findings om he cu en esea ch indica e ha he le el o
sa is ac ion and commi men among middle
manage s/supe iso s in he hospi ali y indus y would be
in luenced by he way hei supe io s beha e. Supe io s by
being e hical ole models (being hones , ai , and
conside a e) in his pa icula indus y and ea hei
subo dina es in a ai manne a e belie ed o signi ican ly
impac employees’ beha iou al ou comes owa d hei
o ganisa ions. These indings a e consis en wi h wha
B own and T e ino (2006) pos ula ed ega ding he abili y
o e hical leade ship o in luence di e en o ganisa ional
ou comes among employees.
In addi ion, he ela ionship be ween job sa is ac ion and
o ganisa ional commi men has been add essed and
empi ical esul s sugges ha job sa is ac ion is posi i ely
ela ed o o ganisa ional commi men (Fle che & Williams,
S.A .J.Bus.Manage.2015,46(2) 95
1996; Ma hieu & Zajac, 1990; Yang, 2010). Consis en wi h
p io esea ch, he indings om his s udy demons a ed
ha middle manage s’/supe iso s’ job sa is ac ion is
posi i ely ela ed o hei a ec i e commi men . When hey
eel sa is ied and pleased wi h hei wo king en i onmen s
and wi h wha hey do, hey would become commi ed and
willingly s ay in hei o ganisa ions.
Ano he impo an pa o ou indings is he inclusion
u no e in en ion and o ganisa ional ci izenship beha iou
as o ganisa ional ou comes esul ed om sa is ied and
commi ed employees. B own and T e ino (2006) a gued
ha social exchange ela ionship would equi e employees
o engage in a mu ual ai and ca ing ea men when hey
a e ea ed in a ai manne ; and consequen ly hey would
exp ess less coun e p oduc i e beha iou s such as u no e
in en ion. Tu no e in en ion among subo dina es has been a
majo conce n o leade s in he ho el indus y, since i will
lead o inc ease in he associa ed cos s such as hi ing and
aining (Dal on & Todo , 1982). Findings om his s udy
indica e ha g ea e job sa is ac ion and commi men lead o
lowe u no e in en ion among middle le el manage s.
While consis en wi h p e ious esul s, his would suppo
he no ion ha being ea ed ai ly and conside a ely would
d i e he sense o sa is ac ion and commi men , which
consequen ly esul in less coun e p oduc i e beha iou s
such in en ion o lea e he o ganisa ion.
Mo eo e , he indings ob ained sugges ha bo h job
sa is ac ion and o ganisa ional commi men a e posi i ely
and signi ican ly ela ed o employee o ganisa ional
ci izenship beha iou . P io s udies ha e p o ided suppo
o he signi ican ole o bo h job sa is ac ion and
o ganisa ional commi men in enhancing o ganisa ional
ci izenship beha iou (Hacke e al., 2003). In he con ex
o e hical leade ship, he p esen s udy p o ides u he
insigh s o he key ole ha sa is ac ion and commi men
play in imp o ing ci izenship beha iou among middle
manage s in he hospi ali y indus y. This esea ch implies
ha sa is ied and commi ed employees would exp ess mo e
ci izenship beha iou s by sha ing ideas, pu ing ex a e o s
and displaying helping beha iou s o he bene i o hei
o ganisa ions.
This esea ch ocused on in es iga ing e hical leade ship in
he ho el indus y in a se ing di e en om hose p e iously
examined. The ho el indus y in a coun y like Malaysia,
which has been epo ed by he Uni ed Na ions Wo ld
Tou ism O ganisa ion (UNWTO) o be in he lis o 10 mos
isi ed coun ies in he yea 2010 (The S a Online, 2012b),
was an app op ia e a ge , since e idences o some une hical
incidences also p o ided jus i ica ion o he in es iga ion.
Empi ical esul s d awn om Malaysian samples p o ide
suppo o he in luence o he e hical leade ship on
sa is ac ion and commi men , which hen impac u no e
in en ion nega i ely and ci izenship beha iou posi i ely.
This would imply ha ho el indus y leade s in Malaysia
would be able o a oid any e hical de ia ions by exp essing
e hical leade ship cha ac e is ics, and by becoming ole
models in hei beha iou s and decision-making p ocess.
The manage ial implica ion o he cu en in es iga ion in o
he ho el indus y is h ee old. Findings o his s udy p o ide
impo an manage ial insigh s in which becoming a ole
model ( ea o he s in a ai , hones , and conside a e manne )
and es ablishing s anda ds in conduc ing e hical codes o
conduc would esul in g ea e p oduc i i y among
subo dina es’ beha iou s owa d hei o ganisa ions.
Manage s should be awa e ha e hical leade ship could
enhance bo h employee le el ou comes and o ganisa ional
le el ou comes. Fi s , in e ms o employee le el ou comes,
manage s a e able o enhance wo e y impo an ac o s in
his le el, namely job sa is ac ion and a ec i e
commi men . Employees would be mo e sa is ied and
commi ed o hei wo k i hey wi nessed he p esence o a
ole model in hei o ganisa ion ha no only de e mines
e hical s anda ds bu also abides and adhe es o hose
s anda ds in his/he beha iou s and decision-making
p ocedu es.
Second, in e ms o o ganisa ional le el ou comes, manage s
should conside he indings om his s udy ha
o ganisa ional le el ou comes such as u no e in en ions
and o ganisa ional ci izenship beha iou s could be
signi ican ly enhanced when employees a e sa is ied and
commi ed. Tu no e in en ion is a majo conce n o
leade s in he ho el indus y and i would inc ease he
associa ed cos s ele an o hi ing and aining (Dal on &
Todo , 1982). Manage s could a oid such cos s by making
employees sa is ied and commi ed, which would esul in
dec easing hei in en ion o lea e he o ganisa ion and
c ea e he clima e o ex a e o s (sha ing ideas, helping
beha iou s, e c.) o he success o he o ganisa ions. On he
o he hand, e aining he cu en employees (by making
hem sa is ied and commi ed) would be mo e economical
han hi ing new ones. New employees migh no be as
a ached o he o ganisa ions as hose cu en employees,
which would se iously unde mine o ganisa ions’ e iciency.
Thi d, manage s in he hospi ali y indus y a e able o hinde
e hical de iances in hei employees’ beha iou by
becoming ole models in hei o ganisa ions ha would
p omo e e hical cul u e among hei subo dina es (Hun e ,
2008). Such de iances om he e hical code o conduc
would ul ima ely des uc he o ganisa ions’ epu a ion and
pe o mance and would lead o bo h inancial and non-
inancial di icul ies. Scandals such as En on should be
conside ed a wa ning sign o o ganisa ions o ealise ha
une hical beha iou s could no be ole a ed anymo e in he
wo ld oday, and people would ex emely eac o hese
no o ie ies. Likewise, he hospi ali y indus y could be
equally damaged and ace a ious d as ic consequences i an
une hical beha iou is ound and epo ed o he public.
This s udy only ocused on middle le el
manage s/supe iso s in he ho el indus y. Unlike o dina y
employees, middle le el manage s a e in mo e con ac wi h
hei own manage s and hey a e mo e suscep ible o g asp
wha hei manage s do and how hey beha e. They could
engage and exchange ela ionships wi h hei leade s mo e
quickly, which would enable he o ganisa ion o apidly
expand he ole model o he leade s in ollowing e hical
96 S.A .J.Bus.Manage.2015,46(2)
codes o conduc in hei beha iou and hei decision
making. Fu u e s udies could in es iga e employees and
s a s beside middle le el manage s, since o dina y
employees in his pa icula indus y could also play
impo an oles due o hei high cus ome con ac . Fu u e
s udies can also examine how e hical leade ship e ec s
inancial pe o mance such as sales and p o i abili y and
non- inancial pe o mance such as i m epu a ion by adding
hose a iables o he cu en model. The cu en model
could also be s udied in o he sec o s o hospi ali y o in
o he indus ies, as his s udy could only a ge one sec o in
hospi ali y indus y.
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