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Does Inclusive Leadership Improve the Sustainability of Employee Relations? Test of Justice Theory and Employee Perceived Insider Status

Author

Listed:
  • Hassan Jalil Shah

    (Government and Public Policy Department, School of Social Sciences and Humanities, National University of Science and Technology, Islamabad 44000, Pakistan)

  • Jenho Peter Ou

    (Department of Finance, Asia University, Taichung City 41354, Taiwan)

  • Saman Attiq

    (Air University School of Management, Air University, Islamabad 44000, Pakistan)

  • Muhammad Umer

    (Department of Management Sciences, COMSATS University, Islamabad 44000, Pakistan)

  • Wing-Keung Wong

    (Department of Finance, Fintech & Blockchain Research Center, and Big Data Research Center, Asia University, Taichung City 41354, Taiwan
    Department of Medical Research, China Medical University, Taichung City 40447, Taiwan
    Department of Economics and Finance, The Hang Seng University of Hong Kong, Hang Shin Link, Siu Lek Yuen 41354, Hong Kong, China)

Abstract

The concept of inclusion has moved beyond being a social construct and has received widespread attention from organisational scholars and practitioners due to its varied effects on employee behaviours and sustainable organisational outcomes. This study tests the impact of inclusive leadership on the withdrawal behaviours of employees. Perceived insider status is used as a mediator and distributive justice as a moderator. This study has collected data from nurses, physicians, and paramedics of selected tertiary hospitals in Pakistan. A convenience sampling technique was used to collect data. A total of 264 responses were analysed using the PLS-SEM approach. Results found that inclusive leadership was positively related to perceived insider status and negatively related to employee withdrawal. Perceived insider status mediated the link. The impact of inclusive leadership on perceived insider status was stronger when distributive justice was high. This study offers multiple theoretical and practical implications, as it uses justice theory as a mechanism to explain boundary conditions around the effects of inclusive leadership on employee perceptions of being insiders, managing employee withdrawals, and improving sustainability in employee relations.

Suggested Citation

  • Hassan Jalil Shah & Jenho Peter Ou & Saman Attiq & Muhammad Umer & Wing-Keung Wong, 2022. "Does Inclusive Leadership Improve the Sustainability of Employee Relations? Test of Justice Theory and Employee Perceived Insider Status," Sustainability, MDPI, vol. 14(21), pages 1-19, November.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:21:p:14257-:d:959897
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