The Influence of Ethical Leadership on Employee Performance through Organizational Citizenship Behavior and Intrinsic Motivation

Authors

  • Sherly Rosalina Tanoto Petra Christian University
  • Gabriely Elyas Tangkawarow Petra Christian University

DOI:

https://doi.org/10.9744/petraijbs.6.2.122-132

Keywords:

Ethical leadership, Employee performance, Organizational citizenship behavior (OCB, Intrinsic motivation

Abstract

Employee performance and its antecedents have always been exciting research topics as employee performance impacts organizational success. Concerning this, leaders are considered to have a significant role in influencing employee performance. Despite being extensively discussed in the literature, little research has investigated ethical leadership as a construct. This research examines the impacts of ethical leadership, organizational citizenship behavior, and intrinsic motivation on performance. The novelty of this research is that it uses two mediating variables that have never been used to examine the association between ethical leadership and performance. A quantitative method was used, and data was collected using a survey. Results indicated that ethical leadership affected organizational citizenship behavior and intrinsic motivation but did not affect employee performance. Ethical leadership influences employee performance if mediated by organizational citizenship behavior. These results may provide new insights for scholars and leaders. Theoretically, this study is one of a few attempts to understand the link between ethical leadership and performance, especially in Eastern culture. Our study suggests leaders should demonstrate ethical leadership to promote OCB and employee motivation.

Author Biography

Sherly Rosalina Tanoto, Petra Christian University

Sherly Rosalina Tanoto is lecturer at Petra Christian University in Business Management Program; SINTA ID: 6670044, GS ID: fwB4f_AAAAAJ

References

Ahmad, I., Donia, M. B. L., Khan, A., & Waris, M. (2019). Do as I say and do as I do? The mediating role of psychological contract fulfillment in the relationship between ethical leadership and employee extra-role performance. Personnel Review, 48(1), 98–117.

Aloustani, S., Atashzadeh-Shoorideh, F., Zagheri-Tafreshi, M., Nasiri, M., Barkhordari-Sharifabad, M., & Skerrett, V. (2020). Association between ethical leadership, ethical climate, and organizational citizenship behavior from nurses’ perspective: A descriptive correlational study. BMC Nursing, 19(15), 1-8.

Atatsi, E. A., Stoffers, J., & Kil, A. (2019). Factors affecting employee performance: a systematic literature review. Journal of Advances in Management Research, 16(3), 329-351.

Ayu Putu Widani Sugianingrat, I., Rini Widyawati, S., Alexandra de Jesus da Costa, C., Ximenes, M., dos Reis Piedade, S., & Gede Sarmawa, W. (2019). The employee and OCB mediate on employee performance. International Journal of Productivity and Performance Management, 68(2), 319–339.

Basu, E., Pradhan, R. K., & Tewari, H. R. (2017). Impact of organizational citizenship behavior on job performance in Indian healthcare industries: The mediating role of social capital. International Journal of Productivity and Performance Management, 66(6), 780–796.

Calza, F., Cannavale, C., & Tutore, I. (2016). The critical effects of national culture on the environmental proactivity of firms. Journal of Management Development, 35(8), 1011-1030.

de Almeida, F. C., Lesca, H., & Canton, A. W. P. (2016). Intrinsic motivation for knowledge sharing – competitive intelligence process in a telecom company. Journal of Knowledge Management, 20(6), 1282–1301.

de Clercq, D., Haq, I. U., & Azeem, M. U. (2018). Self-efficacy to spur job performance: Roles of job-related anxiety and perceived workplace incivility. Management Decision, 56(4), 891–907.

Diamantidis, A. D., & Chatzoglou, P. (2019). Factors affecting employee performance: an empirical approach. International Journal of Productivity and Performance Management, 68(1), 171–193.

Eisend, M., Evanschitzky, H., & Gilliland, D. I. (2016). The influence of organizational and national culture on new product performance. Journal of Product Innovation Management, 33(3), 260-276.

Ghozali, I. (2014). Structural Equation Model: Metode alternatif dengan Partial Least Square (PLS). Badan Penerbit Universitas Diponegoro.

Guo, Y., Liao, J., Liao, S., & Zhang, Y. (2014). The mediating role of intrinsic motivation on the relationship between developmental feedback and employee job performance. Social Behavior and Personality, 42(5), 731–742.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate data analysis (7th ed.). Pearson Education Limited.

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24.

Ilyas, S., Abid, G., & Ashfaq, F. (2020). Ethical leadership in sustainable organizations: The moderating role of general self-efficacy and the mediating role of organizational trust. Sustainable Production and Consumption, 22, 195–204.

Javed, B., Rawwas, M. Y. A., Khandai, S., Shahid, K., & Tayyeb, H. H. (2018). Ethical leadership, trust in leader and creativity: The mediated mechanism and an interacting effect. Journal of Management and Organization, 24(3), 388-405.

Joplin, T., Greenbaum, R. L., Wallace, J. C., & Edwards, B. D. (2021). Employee entitlement, engagement, and performance: The moderating effect of ethical leadership. Journal of Business Ethics, 168(4), 813–826.

Khuong, M. N., & Hoang Quoc, T. (2016). The effects of organizational justice and ethical leadership on employee performance in Binh Duong’s industrial parks, Vietnam. Journal of Economics, Business and Management, 4(4), 327–333.

Kia, N., Halvorsen, B., & Bartram, T. (2019). Ethical leadership and employee in-role performance: The mediating roles of organizational identification, customer orientation, service climate, and ethical climate. Personnel Review, 48(7), 1716–1733.

Kusumah, A. I., Haryadi, A. I., Indrayanto, A., & Setiawan, I. (2021). A mediating and moderating role on employee performance appraisal. Management Research Review, 44(12), 1639-1659.

Li, A., McCauley, K. D., & Shaffer, J. A. (2017). The influence of leadership behavior on employee work-family outcomes: A review and research agenda. Human Resource Management Review, 27(3), 458-472.

Metwally, D., Ruiz-Palomino, P., Metwally, M., & Gartzia, L. (2019). How ethical leadership shapes employees’ readiness to change: The mediating role of an organizational effectiveness culture. Frontiers in Psychology, 10, 1-18.

Mo, S., & Shi, J. (2017). Linking ethical leadership to employees’ organizational citizenship behavior: Testing the multilevel mediation role of organizational concern. Journal of Business Ethics, 141(1), 151–162.

Moon, T. W., Youn, N., Hur, W. M., & Kim, K. M. (2020). Does employees’ spirituality enhance job performance? The mediating roles of intrinsic motivation and job crafting. Current Psychology, 39(5), 1618–1634.

Montague, A., Larkin, R., & Burgess, J. (2016). Where was HRM? The crisis of public confidence in Australia’s banks. Asia Pacific Human Resource Management and Organisational Effectiveness, 67-86.

Muchinsky, P. M. (2012). Psychology applied to work: An introduction to industrial and organi¬zational psychology (10th ed.). Hypergraphic Press, Inc.

Ouakouak, M. L., Zaitouni, M. G., & Arya, B. (2020). Ethical leadership, emotional leadership, and quitting intentions in public organizations: Does employee motivation play a role? Leadership and Organization Development Journal, 41(2), 257–279.

Pawirosumarto, S., Sarjana, P. K., & Muchtar, M. (2017). Factors affecting employee performance of PT. Kiyokuni Indonesia. International Journal of Law and Management, 59(4), 602–614

Potipiroon, W., & Ford, M. T. (2017). Does public service motivation always lead to organizational commitment? Examining the moderating roles of intrinsic motivation and ethical leadership. Public Personnel Management, 46(3), 211–238.

Qing, M., Asif, M., Hussain, A., & Jameel, A. (2020). Exploring the impact of ethical leadership on job satisfaction and organizational commitment in public sector organizations: The mediating role of psychological empowerment. Review of Managerial Science, 14(6), 1405–1432.

Saira, S., Mansoor, S., & Ali, M. (2021). Trans-formational leadership and employee outcomes: The mediating role of psychological empowerment. Leadership and Organization Development Journal, 42(1), 130–143.

Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach (7th ed.). John Wiley & Sons Ltd.

Setiabudi, K. J., Siagian, H., & Tarigan, Z. J. H. (2021). The Effect of transformational leadership on firm performance through ERP systems and supply chain integration in the food and beverage industry. Petra International Journal of Business Studies, 4(1), 65-73.

Shareef, R. A., & Atan, T. (2019). The influence of ethical leadership on academic employees’ organizational citizenship behavior and turnover intention: Mediating role of intrinsic motivation. Management Decision, 57(3), 583–605.

Shin, Y., Hur, W. M., Moon, T. W., & Lee, S. (2019). A motivational perspective on job insecurity: Relationships between job insecurity, intrinsic motivation, and performance and behavioral outcomes. International Journal of Environmental Research and Public Health, 16(10), 1-16.

Sugiyono. (2017). Metode penelitian kuantitatif, kualitatif, dan R&D. Bandung: CV Alfabeta.

Sun, P., & Shang, S. (2019). Personality traits and personal values of servant leaders. Leadership and Organization Development Journal, 40(2), 177–192.

Sutanto, E. M., & Valentine, L. (2022). The Employee performance in the covid-19 pandemic and its antecedents. Petra International Journal of Business Studies, 5(1), 22-29.

Tian, Q., & Sanchez, J. I. (2017). Does paternalistic leadership promote innovative behavior? The interaction between authoritarianism and benevolence. Journal of Applied Social Psychology, 47(5), 235-246.

Tran, T. V. (2009). Developing cross-cultural measure¬ment. New York: Oxford University Press.

Widyaningrum, M. E. (2020). The mediating role of organizational citizenship behavior (OCB) on the effect of work culture and leadership style on employee performance (Study at the department of the PU resources of the air to the west is east). European Journal of Business and Management, 12(23), 52-58.

Additional Files

Published

2023-12-29