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, October.
    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. Feiran Dong & Yongzhen Xie & Linjun Cao, 2019. "Board Power Hierarchy, Corporate Mission, and Green Performance," Sustainability, MDPI, vol. 11(18), pages 1-27, September.
    3. 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.
    4. Matteo Prato & Fabrizio Ferraro, 2018. "Starstruck: How Hiring High-Status Employees Affects Incumbents’ Performance," Organization Science, INFORMS, vol. 29(5), pages 755-774, October.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. Anjan V. Thakor, 2021. "Ethics, Culture, and Higher Purpose in Banking: Post-Crisis Governance Developments," International Journal of Central Banking, International Journal of Central Banking, vol. 17(71), pages 1-31, December.
    10. Anita Williams Woolley, 2011. "Playing Offense vs. Defense: The Effects of Team Strategic Orientation on Team Process in Competitive Environments," Organization Science, INFORMS, vol. 22(6), pages 1384-1398, December.
    11. Bonner, Bryan L. & Bolinger, Alexander R., 2013. "Separating the confident from the correct: Leveraging member knowledge in groups to improve decision making and performance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 122(2), pages 214-221.
    12. Kilduff, Gavin J. & Anderson, Cameron & Willer, Robb, 2013. "Consensus and Contribution: Shared Status Hierarchies Promote Group Success," Institute for Research on Labor and Employment, Working Paper Series qt77q7n684, Institute of Industrial Relations, UC Berkeley.
    13. Bahli, Bouchaib & Rivard, Suzanne, 2005. "Validating measures of information technology outsourcing risk factors," Omega, Elsevier, vol. 33(2), pages 175-187, April.
    14. Haibo Liu & Jürgen Mihm & Manuel E. Sosa & Manuel E. Sosa, 2018. "Where Do Stars Come From? The Role of Star vs. Nonstar Collaborators in Creative Settings," Organization Science, INFORMS, vol. 29(6), pages 1149-1169, December.
    15. Thiess, Dorina & Sirén, Charlotta & Grichnik, Dietmar, 2016. "How does heterogeneity in experience influence the performance of nascent venture teams?: Insights from the US PSED II study," Journal of Business Venturing Insights, Elsevier, vol. 5(C), pages 55-62.
    16. Yuqing Ren & Kathleen M. Carley & Linda Argote, 2006. "The Contingent Effects of Transactive Memory: When Is It More Beneficial to Know What Others Know?," Management Science, INFORMS, vol. 52(5), pages 671-682, May.
    17. Fabienne Jedelhauser & Raphael Flepp & Egon Franck, 2023. "Overshadowed by Popularity: The Value of Second-Tier Stars in European Football," Journal of Sports Economics, , vol. 24(8), pages 1026-1054, December.
    18. David P. Brandon & Andrea B. Hollingshead, 2004. "Transactive Memory Systems in Organizations: Matching Tasks, Expertise, and People," Organization Science, INFORMS, vol. 15(6), pages 633-644, December.
    19. Lisa Herzog, 2019. "Professional Ethics in Banking and the Logic of “Integrated Situations”: Aligning Responsibilities, Recognition, and Incentives," Journal of Business Ethics, Springer, vol. 156(2), pages 531-543, May.
    20. Caviggioli, Federico & Colombelli, Alessandra & Ravetti, Chiara, 2022. "Peers and stars: the role of gender among coinventors," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 202201, University of Turin.

    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.