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How Does Ethical Leadership Trickle Down? Test of an Integrative Dual-Process Model

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  • Zhen Wang

    (Central University of Finance and Economics)

  • Haoying Xu

    (Central University of Finance and Economics)

  • Yukun Liu

    (National University of Singapore)

Abstract

Although the trickle-down effect of ethical leadership has been documented in the literature, its underlying mechanism still remains largely unclear. To address this gap, we develop a cross-level dual-process model to explain how the effect occurs. Drawing on social learning theory, we hypothesize that the ethical leadership of high-level managers could cascade to middle-level supervisors via its impact on middle-level supervisors’ two ethical expectations. Using a sample of 69 middle-level supervisors and 381 subordinates across 69 sub-branches from a large banking firm in China, we found that middle-level supervisors’ ethical efficacy expectation and unethical behavior–punishment expectation (as one form of ethical outcome expectations) accounted for the trickle-down effect. The explanatory role of middle-level supervisors’ ethical behavior–reward expectation (as the other form of ethical outcome expectations), however, was not supported. The theoretical and practical implications are discussed.

Suggested Citation

  • Zhen Wang & Haoying Xu & Yukun Liu, 2018. "How Does Ethical Leadership Trickle Down? Test of an Integrative Dual-Process Model," Journal of Business Ethics, Springer, vol. 153(3), pages 691-705, December.
    • Handle: RePEc:kap:jbuset:v:153:y:2018:i:3:d:10.1007_s10551-016-3361-x
    DOI: 10.1007/s10551-016-3361-x
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    References listed on IDEAS

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    1. Michael Brown & Linda Treviño, 2014. "Do Role Models Matter? An Investigation of Role Modeling as an Antecedent of Perceived Ethical Leadership," Journal of Business Ethics, Springer, vol. 122(4), pages 587-598, July.
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    6. Pablo Ruiz & Carmen Ruiz & Ricardo Martínez, 2011. "Improving the “Leader–Follower” Relationship: Top Manager or Supervisor? The Ethical Leadership Trickle-Down Effect on Follower Job Response," Journal of Business Ethics, Springer, vol. 99(4), pages 587-608, April.
    7. Walumbwa, Fred O. & Mayer, David M. & Wang, Peng & Wang, Hui & Workman, Kristina & Christensen, Amanda L., 2011. "Linking ethical leadership to employee performance: The roles of leader-member exchange, self-efficacy, and organizational identification," Organizational Behavior and Human Decision Processes, Elsevier, vol. 115(2), pages 204-213, July.
    8. Sarah Fischbach, 2015. "Ethical Efficacy as a Measure of Training Effectiveness: An Application of the Graphic Novel Case Method Versus Traditional Written Case Study," Journal of Business Ethics, Springer, vol. 128(3), pages 603-615, May.
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    Cited by:

    1. Zhen Wang & Lu Xing & Haoying Xu & Sean T. Hannah, 2021. "Not All Followers Socially Learn from Ethical Leaders: The Roles of Followers’ Moral Identity and Leader Identification in the Ethical Leadership Process," Journal of Business Ethics, Springer, vol. 170(3), pages 449-469, May.
    2. Dongkyu Kim & Dongwon Choi & Seung Yeon Son, 2024. "Does Ethical Voice Matter? Examining How Peer Team Leader Ethical Voice and Role Modeling Relate to Ethical Leadership," Journal of Business Ethics, Springer, vol. 192(1), pages 113-128, June.
    3. Badghish, Saeed & Shaik, Aqueeb Sohail & Sahore, Nidhi & Srivastava, Shalini & Masood, Ayesha, 2024. "Can transactional use of AI-controlled voice assistants for service delivery pickup pace in the near future? A social learning theory (SLT) perspective," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    4. Shuwen Li & Ruiqian Jia & Juergen H. Seufert & Jinlian Luo & Rui Sun, 2023. "You may not reap what you sow: How and when ethical leadership promotes subordinates’ online helping behavior," Asia Pacific Journal of Management, Springer, vol. 40(4), pages 1683-1702, December.
    5. Emmanuel Osafo & Amy Paros & Robert M. Yawson, 2021. "Valence–Instrumentality–Expectancy Model of Motivation as an Alternative Model for Examining Ethical Leadership Behaviors," SAGE Open, , vol. 11(2), pages 21582440211, June.

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