Does CSR mediate the nexus of ethical leadership and employee's job performance? Evidence from North Italy SMEs
In: Social responsibility journal: the official journal of the Social Responsibility Research Network (SRRNet), Band 18, Heft 1, S. 154-177
ISSN: 1758-857X
Purpose
Leadership has a decisive role in the success of all types of businesses and firms, including small- and medium-sized enterprises (SMEs), and the ethical behavior of leaders is a key component which brings a sense of respect, fulfillment, trustworthiness and acceptance among the employees, which later become visible in their job performance (JP). This study aims to check the immediate effect of ethical leadership (EL) on employee's JP (EJP) and also explore the indirect mediating effect of corporate social responsibility (CSR) on this EL and EJP nexus.
Design/methodology/approach
Primary data was obtained from the employees of manufacturing SMEs of Northern Italy using a cross-sectional design from the end of 2019 to the start of 2020. This paper circulated 450 self-administered questionnaires using simple random sampling, and 202 (44.88%) valid questionnaires were returned. The PROCESS macro was performed using statistical package for social sciences to ensure whether or not EL affects EJP and is there any mediation effect of CSR present in this nexus.
Findings
The results indicate that EL has a strong positive connection with EJP and CSR. Interestingly, CSR positively influences EJP. Furthermore, the results also report the strong mediating effect of CSR in the nexus of EL and EJP.
Originality/value
This scholarly work seeks to contribute not only to the literature of EL and EJP but also enriches the understanding of this EL-EJP association by highlighting the indirect effect of mediating variable CSR in the SME sector.