Title: Modelling the mediating moderating effects of ethical leadership on the relationship between moral competence and moral cognition

Authors: Khalizani Khalid; Maznah Wan Omar; Siew-Phaik Loke

Addresses: Faculty of Business Management, Universiti Teknologi MARA, Bandar Baru Seri Iskandar, 32610 Perak, Malaysia ' Faculty of Business Management, Universiti Teknologi MARA, 08400 Merbok, Kedah, Malaysia ' Faculty of Business Management, Universiti Teknologi MARA, Bandar Baru Seri Iskandar, 32610 Perak, Malaysia

Abstract: This study suggests that the multifaceted relations between moral competence, ethical leadership and moral cognition cannot be subsumed within a simple mediation or moderation model because the maturity of the study and the sophistication of the field of inquiry can be questioned. Three competing configurationally models are tested to examine the adequacy of influence-intervention effects of the model that satisfy cause and effect analysis using structural equation modelling. The finding has revealed the strength of mediating moderating role of ethical leadership that highlights the superiority of influence-intervention effect to support the cause and effect relationship between moral competence and moral cognition. The generalisability of findings is restricted by the nature of the inter-industry and no final conclusion about causality can be drawn because the participants may be influenced by ethics-situational events. Our study is considered as innovative as it extends a well-known mediator and moderator model by mediating moderating process.

Keywords: moral competence; moral cognition; ethical leadership; mediation; moderation; structural equation modelling; SEM; mediating effects; moderating effects; influence; intervention.

DOI: 10.1504/IJMOM.2014.063576

International Journal of Modelling in Operations Management, 2014 Vol.4 No.1/2, pp.1 - 20

Received: 17 Aug 2013
Accepted: 27 Feb 2014

Published online: 30 Jul 2014 *

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