Ethical leadership and employee-organisational outcomes in the hotel industry

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), Cape Town, Vol. 46, Iss. 2, pp. 89-98, h ps://doi.o g/10.4102/sajbm. 46i2.95 This Ve sion is a ailable a : h ps://hdl.handle.ne /10419/218577 S anda d-Nu zungsbedingungen: Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen Zwecken und zum P i a geb auch gespeiche und kopie we den. Sie dü en die Dokumen e nich ü ö en liche ode komme zielle Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich machen, e eiben ode ande wei ig nu zen. So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen (insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en, gel en abweichend on diesen Nu zungsbedingungen die in de do genann en Lizenz gewäh en Nu zungs ech e. Te ms o use: Documen s in EconS o may be sa ed and copied o you pe sonal and schola ly pu poses. You a e no o copy documen s o public o comme cial pu poses, o exhibi he documen s publicly, o make hem publicly a ailable on he in e ne , o o dis ibu e o o he wise use he documen s in public. I he documen s ha e been made a ailable unde an Open Con en Licence (especially C ea i e Commons Licences), you may exe cise u he usage igh s as speci ied in he indica ed licence. h ps://c ea i ecommons.o g/licenses/by/4.0/ S.A .J.Bus.Manage.2015,46(2) 89 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. Re e ence Allen, & Meye . 1990. ‘The measu emen and an eceden s o a ec i e, con inuance and no ma i e commi men o he o ganisa ion’, Jou nal o Occupa ional Psychology, 63(1):1-18. 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