IDEAS home Printed from https://ideas.repec.org/a/ibf/gjbres/v12y2018i2p15-24.html
   My bibliography  Save this article

Evidence Of The Impact Of Leader Statusrelated Behaviors On Organizational Outcomes In Financial Service Firms

Author

Listed:
  • Kelly C. Mullen

Abstract

The U.S. financial services industry has been in a state crisis for three decades, precipitated by ethical misconduct within the industry. Regulatory and legislative changes have been introduced, yet the industry¡¯s ethical climate remains largely unchanged. Industry participants have acknowledged the limitations of external intervention and have called for change at the organizational level that specifically targets organizational leadership and culture to promote ethical and organizational citizenship behavior (OCB) outcomes. Deming proposed that firms may improve quality through comparative performance assessment with outside industries. This study is modeled after research conducted by Nembhard and Edmondson (2006) to determine whether significant organizational findings from the healthcare industry are reproducible in the financial services industry. This study used a multivariate, experimental design to examine the relationship of professional status and psychological safety on organizational citizenship behavior outcomes, while incorporating the moderating effect of leader inclusiveness. 247 current financial services professionals participated in this study. The study implemented a three-phased analytical process involving latent class analysis, recursive path analysis, and qualitative analysis. The results of the study indicate that professional status influences perceptions of psychological safety and is moderated by leader inclusiveness. The results also confirm that leader inclusiveness has a direct influence on OCB-voice and that psychological safety directly mediates OCB helping and organizational commitment outcomes. The findings of this study provide managerial insights on how organizational leaders in the financial services industry might effectively manage professional status differences to enhance employee perceptions of psychological safety and to stimulate organizational citizenship behavior in employees

Suggested Citation

  • Kelly C. Mullen, 2018. "Evidence Of The Impact Of Leader Statusrelated Behaviors On Organizational Outcomes In Financial Service Firms," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 12(2), pages 15-24.
    • Handle: RePEc:ibf:gjbres:v:12:y:2018:i:2:p:15-24
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v12n2-2018/GJBR-V12N2-2018-2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. William Dudley, 2014. "Opening remarks at the Workshop on Reforming Culture and Behavior in the Financial Services Industry," Speech 148, Federal Reserve Bank of New York.
    2. Boris Groysberg & Jeffrey T. Polzer & Hillary Anger Elfenbein, 2011. "Too Many Cooks Spoil the Broth: How High-Status Individuals Decrease Group Effectiveness," Organization Science, INFORMS, vol. 22(3), pages 722-737, June.
    3. Littlepage, Glenn & Robison, William & Reddington, Kelly, 1997. "Effects of Task Experience and Group Experience on Group Performance, Member Ability, and Recognition of Expertise," Organizational Behavior and Human Decision Processes, Elsevier, vol. 69(2), pages 133-147, February.
    4. Santoro,Michael A. & Strauss,Ronald J., 2013. "Wall Street Values," Cambridge Books, Cambridge University Press, number 9781107017351, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dennis B. Veltrop & Eric Molleman & Reggy B. H. Hooghiemstra & Hans van Ees, 2017. "Who's the Boss at the Top? A Micro‐Level Analysis of Director Expertise, Status and Conformity Within Boards," Journal of Management Studies, Wiley Blackwell, vol. 54(7), pages 1079-1110, November.
    2. Youchung Kwon & Bo Kyung Kim, 2024. "When we unite, not divide: status homophily, group average status, and group performance in the Korean film industry," Asian Business & Management, Palgrave Macmillan, vol. 23(1), pages 9-31, February.
    3. Liwen Wang & Jin Jason Lu & Kevin Zhou, 2023. "Technological Capability Strength/Asymmetry and Supply Chain Process Innovation: The Contingent Roles of Institutional Environments in China," Post-Print hal-03954124, HAL.
    4. Feiran Dong & Yongzhen Xie & Linjun Cao, 2019. "Board Power Hierarchy, Corporate Mission, and Green Performance," Sustainability, MDPI, vol. 11(18), pages 1-27, September.
    5. Robert S. Huckman & Bradley R. Staats, 2008. "Variation in Experience and Team Familiarity: Addressing the Knowledge Acquisition-Application Problem," Harvard Business School Working Papers 09-035, Harvard Business School.
    6. Bonner, Bryan L. & Baumann, Michael R. & Dalal, Reeshad S., 2002. "The effects of member expertise on group decision-making and performance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 88(2), pages 719-736, July.
    7. Edward J. Kane, 2016. "A Theory of How and Why Central-Bank Culture Supports Predatory Risk-Taking at Megabanks," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 44(1), pages 51-71, March.
    8. Robert S. Huckman & Bradley R. Staats, 2011. "Fluid Tasks and Fluid Teams: The Impact of Diversity in Experience and Team Familiarity on Team Performance," Manufacturing & Service Operations Management, INFORMS, vol. 13(3), pages 310-328, July.
    9. Matteo Prato & Fabrizio Ferraro, 2018. "Starstruck: How Hiring High-Status Employees Affects Incumbents’ Performance," Organization Science, INFORMS, vol. 29(5), pages 755-774, October.
    10. Satterstrom, Patricia & Polzer, Jeffrey T. & Kwan, Lisa B. & Hauser, Oliver P. & Wiruchnipawan, Wannawiruch & Burke, Marina, 2019. "Thin slices of workgroups," Organizational Behavior and Human Decision Processes, Elsevier, vol. 151(C), pages 104-117.
    11. Hsuan-Wei Lee & Yen-Ping Chang & Yen-Sheng Chiang, 2020. "Status hierarchy and group cooperation: A generalized model," Papers 2004.00944, arXiv.org, revised Aug 2020.
    12. Jamal Shamsie & Michael J. Mannor, 2013. "Looking Inside the Dream Team: Probing Into the Contributions of Tacit Knowledge as an Organizational Resource," Organization Science, INFORMS, vol. 24(2), pages 513-529, April.
    13. Claudio Vitari & Aurelio Ravarini & Bernard Fallery, 2006. "The Kms Recommending Experts In The Communities: Proposition Of A Theory On Their Success," Post-Print halshs-01924301, HAL.
    14. Jie Mi & Zaiyang Xie & Shaojie Lv, 2023. "Star-studded or equalitarianism: how does the distribution of creative stars affect exploration–exploitation balance?," Computational and Mathematical Organization Theory, Springer, vol. 29(2), pages 336-362, June.
    15. Meichen Dong & Jie Jiao & Jun Xia, 2022. "Consequences of homophily: does social status similarity enhance project performance?," Asian Business & Management, Palgrave Macmillan, vol. 21(1), pages 58-81, February.
    16. Corinne Bendersky & Nicholas A. Hays, 2012. "Status Conflict in Groups," Organization Science, INFORMS, vol. 23(2), pages 323-340, April.
    17. Andrew M. Carton & Basima A. Tewfik, 2016. "Perspective—A New Look at Conflict Management in Work Groups," Organization Science, INFORMS, vol. 27(5), pages 1125-1141, October.
    18. Truc (Peter) Thuc Do & Huai Zhang, 2020. "Peer Effects among Financial Analysts," Contemporary Accounting Research, John Wiley & Sons, vol. 37(1), pages 358-391, March.
    19. Choi, Yunsik & Delise, Lisa A. & Lee, Brandon W. & Neely, Jerry, 2021. "Effective staffing of projects for reconciling conflict between cost efficiency and quality," International Journal of Production Economics, Elsevier, vol. 234(C).
    20. H. Colleen Stuart, 2017. "Structural Disruption, Relational Experimentation, and Performance in Professional Hockey Teams: A Network Perspective on Member Change," Organization Science, INFORMS, vol. 28(2), pages 283-300, April.

    More about this item

    Keywords

    Professional Status; Leader Inclusiveness; Team Leader Coaching; Psychological Safety; Financial Services Firms; Organizational Citizenship Behavior; Ethical Outcomes;
    All these keywords.

    JEL classification:

    • L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:gjbres:v:12:y:2018:i:2:p:15-24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mercedes Jalbert (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.