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A three-level examination of the cascading effects of ethical leadership on employee outcomes: A moderated mediation analysis

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  • Byun, Gukdo
  • Karau, Steven J.
  • Dai, Ye
  • Lee, Soojin

Abstract

Based on social learning theory, we developed a moderated-mediation model of trickle-down effects to test how the ethical leadership of high-level leaders influences the ethical leadership of low-level leaders and the work outcomes of subordinate employees. Data were collected from 224 leader-employee dyads at six large companies in South Korea. The results of hierarchical regression analyses provided support for this model. Our results indicated that the ethical leadership of high-level leaders trickles down to low-level leaders, which then reduces the social loafing of employees while increasing their task performance. We also found that the self-enhancement motives of low-level leaders moderate the positive relationship between the ethical leadership of high and low-level leaders in a way that strengthens this relationship when the motives are low rather than high. This finding further suggests that low levels of self-enhancement motives strengthen the indirect effects of ethical, high-level leadership on employee social loafing and task performance.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jbrese:v:88:y:2018:i:c:p:44-53
    DOI: 10.1016/j.jbusres.2018.03.004
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    References listed on IDEAS

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