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

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 t...

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Bibliographic Details
Authors: Wang, Zhen (Author) ; Xu, Haoying (Author) ; Liu, Yukun (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 2018
In: Journal of business ethics
Year: 2018, Volume: 153, Issue: 3, Pages: 691-705
Further subjects:B Ethical outcome expectation
B Ethical Leadership
B Social Learning Theory
B Ethical efficacy expectation
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Summary: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.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1007/s10551-016-3361-x