Title: Linking retailers' ethical leadership to frontline employee outcomes: a structural equation model approach

Authors: Arto Lindblom; Sami Kajalo; Lasse Mitronen

Addresses: School of Business, Aalto University, P.O. Box 21210, FI-00076 Aalto, Finland ' School of Business, Aalto University, P.O. Box 21210, FI-00076 Aalto, Finland ' School of Business, Aalto University, P.O. Box 21210, FI-00076 Aalto, Finland

Abstract: This study aims to explore how frontline employee perceptions of the retailer's ethical leadership influence their work-related thoughts and behaviours. To achieve this we develop hypotheses about the influence of the retailer's ethical leadership on frontline employee job satisfaction, self-efficacy, organisational identification, and turnover intentions. Using structural equation modelling we test our hypotheses with a sample of 208 frontline employees from the Finnish retail industry. Our research results suggest that retailers' ethical leadership relates positively to frontline employee job satisfaction, self-efficacy and organisational identification. This study also shows that frontline employee job satisfaction has a strong negative impact on their turnover intentions. In addition, the results indicate that there is a relatively strong negative impact directly from ethical leadership on turnover intentions. Theoretical and practical implications as well as future research opportunities are also discussed.

Keywords: ethical leadership; retailing; frontline employee; structural equation model.

DOI: 10.1504/IJBIR.2017.085778

International Journal of Business Innovation and Research, 2017 Vol.14 No.1, pp.18 - 38

Received: 01 Jun 2015
Accepted: 10 Aug 2015

Published online: 24 Jul 2017 *

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