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

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.