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Effect of competitive psychological climate on unethical pro-team behavior: The role of perceived insider status and transformational leadership

Author

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  • Irangani B.K. Sagarika

    (Ph.D., School of Management, Huazhong University of Science and Technology, Wuhan, Hubei, PR-China, Lecturer; Siyane College of Education, Veyangoda, Sri Lanka)

  • Zhiqiang Liu

    (School of Management, Huazhong University of Science and Technology, Wuhan, Hubei, PR-China)

  • Kumar Nilesh

    (School of Management, Huazhong University of Science and Technology, Wuhan, Hubei, PR-China, Department of Business Administration, ILMA University, Karachi, Pakistan, Department of Business Administration, ILMA University, Karachi, Pakistan)

  • Khanal Saroj

    (MS, Administrative Officer; Department of Food Technology and Quality Control, Babarmahal, Kathmandu, Nepal)

Abstract

The purpose of this study is to explain why employees in financial companies in Sri Lanka are likely to engage in unethical pro-team behaviors and how transformational leaders involve controlling unethical pro-team behaviors in a competitive work environment. The study employed a quantitative approach to investigate the association between the competitive psychological climate and perceived insider status on unethical pro-team behaviors. The authors collected data from 426 sales representatives at a finance company in Sri Lanka and tested hypotheses using Structural Equation Modelling analyses through Smart PLS version 3. The results indicate that competitive psychological climate and perceived insider status are positively associated with unethical pro-team behaviors. Further, the transformational leadership’s moderation is negatively significant on the relationship between competitive psychological climate and unethical pro-team behaviors. The study has shown that the leader will delegate more responsibility to the employee, associated with increased employee empowerment and high-quality, ethical behaviors. Besides, it contributes to the literature as of the new theoretical base and offers practical implications with the richer view of a nomological link between the leader, competitive employee, and competitive work environment.

Suggested Citation

  • Irangani B.K. Sagarika & Zhiqiang Liu & Kumar Nilesh & Khanal Saroj, 2021. "Effect of competitive psychological climate on unethical pro-team behavior: The role of perceived insider status and transformational leadership," Management, Sciendo, vol. 25(1), pages 1-27, January.
    • Handle: RePEc:vrs:manmen:v:25:y:2021:i:1:p:1-27:n:1
    DOI: 10.2478/manment-2019-0057
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    References listed on IDEAS

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    1. Tenenhaus, Michel & Vinzi, Vincenzo Esposito & Chatelin, Yves-Marie & Lauro, Carlo, 2005. "PLS path modeling," Computational Statistics & Data Analysis, Elsevier, vol. 48(1), pages 159-205, January.
    2. Bell, Alison J.C. & Rogers, M. Brooke & Pearce, Julia M., 2019. "The insider threat: Behavioral indicators and factors influencing likelihood of intervention," International Journal of Critical Infrastructure Protection, Elsevier, vol. 24(C), pages 166-176.
    3. Peter Mudrack & James Bloodgood & William Turnley, 2012. "Some Ethical Implications of Individual Competitiveness," Journal of Business Ethics, Springer, vol. 108(3), pages 347-359, July.
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    More about this item

    Keywords

    Competitive Psychological Climate; Transformational Leadership; Perceived Insider Status; Unethical Pro-Team Behaviors; Social Identity Theory; Self-Efficacy Theory;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • D2 - Microeconomics - - Production and Organizations
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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