The Dynamics of Ethical Leadership Enhance Customer Orientation in a Competitive Marketplace

Authors

  • Sehrish Nick 1. Faculty of Engineering and Information Sciences, University of Wollongong, Wollongong, NSW, Australia
  • Cristina Larry Norwich Business School, University of East Anglia, United Kingdom
  • Eliana Costa Systems and Information Development - CDSID, Universidade Federal de Pernambuco, Recife, PE, Brazil

DOI:

https://doi.org/10.69725/jebi.v1i4.135

Keywords:

Customer orientation, Ethical leadership, Competitive intensity, Firm performance, Leadership dynamics

Abstract

Purpose: This study explores ethical leadership dynamics (humane, justice, and moderation leadership) that strengthen customer orientation (CO) under competition environments within Australia. This study seeks to deepen the understanding of how leadership behaviors affect CO at different stages of competitive intensity.
Methods: A quantitative approach using survey data collected from 700 managers in a variety of industries in Australia. To test the hypotheses, structural equation modeling (SEM) was employed, as well as interaction analysis to assess competitive intensity as a moderator.
Results: All three ethical leadership styles significantly promote CO, and moderation leadership is more significantly and positively related to CO than the other two leadership styles. The competitive intensity adds an extra layer to these effects, highlighting that competitive and dynamic contexts make leadership behaviors vital. Synergistic relationships among leadership styles, CO, and competitive intensity are illustrated in interaction plots.
Novelty: Previous research examined mostly not all ethical leadership in isolation and this study integrates several ethical leadership styles to understand their collective and individual effects on CO. Moreover, this study expands understanding regarding the dynamics of leadership in the context of real-world competition by introducing competitive intensity as a contextual moderator.
Implications: The study provides actionable insights for organizations seeking to develop customer-centric organizations. Leadership training programs should focus on ethical leadership behaviors, especially in highly competitive industries. On an academic front, this research fills the void in literature by showing the metanarrative of the role between ethical leadership styles and environmental aspects.

Downloads

Download data is not yet available.

Author Biographies

  • Sehrish Nick, 1. Faculty of Engineering and Information Sciences, University of Wollongong, Wollongong, NSW, Australia

    Dr. Sehrish Nick.
    Faculty of Engineering and Information Sciences, University of Wollongong, Wollongong, NSW, Australia

  • Cristina Larry , Norwich Business School, University of East Anglia, United Kingdom

    Dr. Cristina Larry., CFA
    Norwich Business School, University of East Anglia, United Kingdom

  • Eliana Costa , Systems and Information Development - CDSID, Universidade Federal de Pernambuco, Recife, PE, Brazil

    Dr. Eliana Costa

    Systems and Information Development - CDSID, Universidade Federal de Pernambuco, Recife, PE, Brazil

References

Ahn, J., Shamim, A., & Park, J. (2021). Impacts of cruise industry corporate social responsibility reputation on customers’ loyalty: Mediating role of trust and identification. International Journal of Hospitality Management, 92, 102706. https://doi.org/https://doi.org/10.1016/j.ijhm.2020.102706

Akanfe, O., Lawong, D., & Rao, H. R. (2024). Blockchain technology and privacy regulation: Reviewing frictions and synthesizing opportunities. International Journal of Information Management, 76, 102753. https://doi.org/https://doi.org/10.1016/j.ijinfomgt.2024.102753

Al Halbusi, H., Tang, T. L.-P., Williams, K. A., & Ramayah, T. (2024). Chapter 15 - Do ethical leaders enhance employee ethical behaviors? Organizational justice and ethical climate as dual mediators and leader moral attentiveness as a moderator: Empirical support from Iraq’s emerging market☆ (T. B. T.-M. W. Li-Ping Tang (ed.); pp. 317–337). Academic Press. https://doi.org/https://doi.org/10.1016/B978-0-443-15453-9.00018-8

Ali, I., Arslan, A., Chowdhury, M., Khan, Z., & Tarba, S. Y. (2022). Reimagining global food value chains through effective resilience to COVID-19 shocks and similar future events: A dynamic capability perspective. Journal of Business Research, 141, 1–12. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.12.006

Baća, B. (2024). Three stages of civil society development in the Global East: Lessons from Montenegro, 1989–2020. Political Geography, 109, 103005. https://doi.org/https://doi.org/10.1016/j.polgeo.2023.103005

Brown, M. E., & Treviño, L. K. (2006). Ethical leadership: A review and future directions. The Leadership Quarterly, 17(6), 595–616. https://doi.org/https://doi.org/10.1016/j.leaqua.2006.10.004

Conboy, K., Mikalef, P., Dennehy, D., & Krogstie, J. (2020). Using business analytics to enhance dynamic capabilities in operations research: A case analysis and research agenda. European Journal of Operational Research, 281(3), 656–672. https://doi.org/https://doi.org/10.1016/j.ejor.2019.06.051

Craft, J. L., & Shannon, K. R. (2024). An examination of the 2012–2022 empirical ethical decision-making literature: A quinary review. Business Ethics, the Environment & Responsibility, n/a(n/a). https://doi.org/https://doi.org/10.1111/beer.12676

Do, H., Budhwar, P., Shipton, H., Nguyen, H.-D., & Nguyen, B. (2022). Building organizational resilience, innovation through resource-based management initiatives, organizational learning and environmental dynamism. Journal of Business Research, 141, 808–821. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.11.090

Doern, R. (2021). Knocked down but not out and fighting to go the distance: Small business responses to an unfolding crisis in the initial impact period. Journal of Business Venturing Insights, 15, e00221. https://doi.org/https://doi.org/10.1016/j.jbvi.2020.e00221

Eva, N., Robin, M., Sendjaya, S., van Dierendonck, D., & Liden, R. C. (2019). Servant Leadership: A systematic review and call for future research. The Leadership Quarterly, 30(1), 111–132. https://doi.org/https://doi.org/10.1016/j.leaqua.2018.07.004

Feng, T., Wang, D., Lawton, A., & Luo, B. N. (2019). Customer orientation and firm performance: The joint moderating effects of ethical leadership and competitive intensity. Journal of Business Research, 100, 111–121. https://doi.org/https://doi.org/10.1016/j.jbusres.2019.03.021

Ghosh, S., Hughes, M., Hodgkinson, I., & Hughes, P. (2022). Digital transformation of industrial businesses: A dynamic capability approach. Technovation, 113, 102414. https://doi.org/https://doi.org/10.1016/j.technovation.2021.102414

Govindan, K., Rajeev, A., Padhi, S. S., & Pati, R. K. (2020). Supply chain sustainability and performance of firms: A meta-analysis of the literature. Transportation Research Part E: Logistics and Transportation Review, 137, 101923. https://doi.org/https://doi.org/10.1016/j.tre.2020.101923

Haffar, M., & Searcy, C. (2019). How organizational logics shape trade-off decision-making in sustainability. Long Range Planning, 52(6), 101912. https://doi.org/https://doi.org/10.1016/j.lrp.2019.101912

Hameed, Z., Naeem, R. M., Misra, P., Chotia, V., & Malibari, A. (2023). Ethical leadership and environmental performance: The role of green IT capital, green technology innovation, and technological orientation. Technological Forecasting and Social Change, 194, 122739. https://doi.org/https://doi.org/10.1016/j.techfore.2023.122739

Ilyas, S., Abid, G., & Ashfaq, F. (2020). Ethical leadership in sustainable organizations: The moderating role of general self-efficacy and the mediating role of organizational trust. Sustainable Production and Consumption, 22, 195–204. https://doi.org/https://doi.org/10.1016/j.spc.2020.03.003

Intarakumnerd, P., & Goto, A. (2018). Role of public research institutes in national innovation systems in industrialized countries: The cases of Fraunhofer, NIST, CSIRO, AIST, and ITRI. Research Policy, 47(7), 1309–1320. https://doi.org/https://doi.org/10.1016/j.respol.2018.04.011

Islam, T., Islam, R., Pitafi, A. H., Xiaobei, L., Rehmani, M., Irfan, M., & Mubarak, M. S. (2021). The impact of corporate social responsibility on customer loyalty: The mediating role of corporate reputation, customer satisfaction, and trust. Sustainable Production and Consumption, 25, 123–135. https://doi.org/https://doi.org/10.1016/j.spc.2020.07.019

Iwuoha, V. C., Okafor, N. I., & Ifeadike, E. (2022). State regulation of Nigeria’s maritime ports: Exploring the impact of port concession on both the regulator and the operators. Politics & Policy, 50(5), 1032–1052. https://doi.org/https://doi.org/10.1111/polp.12495

Jan, Z., Ahamed, F., Mayer, W., Patel, N., Grossmann, G., Stumptner, M., & Kuusk, A. (2023). Artificial intelligence for industry 4.0: Systematic review of applications, challenges, and opportunities. Expert Systems with Applications, 216, 119456. https://doi.org/https://doi.org/10.1016/j.eswa.2022.119456

Jiang, Y., & Stylos, N. (2021). Triggers of consumers’ enhanced digital engagement and the role of digital technologies in transforming the retail ecosystem during COVID-19 pandemic. Technological Forecasting and Social Change, 172, 121029. https://doi.org/https://doi.org/10.1016/j.techfore.2021.121029

Keegan, B. J., Canhoto, A. I., & Yen, D. A. (2022). Power negotiation on the tango dancefloor: The adoption of AI in B2B marketing. Industrial Marketing Management, 100, 36–48. https://doi.org/https://doi.org/10.1016/j.indmarman.2021.11.001

Klein, G. (2023). Transformational and transactional leadership, organizational support and environmental competition intensity as antecedents of intrapreneurial behaviors. European Research on Management and Business Economics, 29(2), 100215. https://doi.org/https://doi.org/10.1016/j.iedeen.2023.100215

Lee, M. T., & Suh, I. (2022). Understanding the effects of Environment, Social, and Governance conduct on financial performance: Arguments for a process and integrated modelling approach. Sustainable Technology and Entrepreneurship, 1(1), 100004. https://doi.org/https://doi.org/10.1016/j.stae.2022.100004

Lin, W. L., Yip, N., Ho, J. A., & Sambasivan, M. (2020). The adoption of technological innovations in a B2B context and its impact on firm performance: An ethical leadership perspective. Industrial Marketing Management, 89, 61–71. https://doi.org/https://doi.org/10.1016/j.indmarman.2019.12.009

Liu, H., & Zhang, Z. (2023). The impact of managerial myopia on environmental, social and governance (ESG) engagement: Evidence from Chinese firms. Energy Economics, 122, 106705. https://doi.org/https://doi.org/10.1016/j.eneco.2023.106705

Neubert, M. J., de Luque, M. S., Quade, M. J., & Hunter, E. M. (2022). Servant leadership across the globe: Assessing universal and culturally contingent relevance in organizational contexts. Journal of World Business, 57(2), 101268. https://doi.org/https://doi.org/10.1016/j.jwb.2021.101268

Paparoidamis, N. G., Katsikeas, C. S., & Chumpitaz, R. (2019). The role of supplier performance in building customer trust and loyalty: A cross-country examination. Industrial Marketing Management, 78, 183–197. https://doi.org/https://doi.org/10.1016/j.indmarman.2017.02.005

Podsakoff, P. M., & Podsakoff, N. P. (2019). Experimental designs in management and leadership research: Strengths, limitations, and recommendations for improving publishability. The Leadership Quarterly, 30(1), 11–33. https://doi.org/https://doi.org/10.1016/j.leaqua.2018.11.002

Schwepker, C. H. (2019). Strengthening Customer Value Development and Ethical Intent in the Salesforce: The Influence of Ethical Values Person–Organization Fit and Trust in Manager. Journal of Business Ethics, 159(3), 913–925. https://doi.org/10.1007/s10551-018-3851-0

Schwepker, C. H., & Dimitriou, C. K. (2021). Using ethical leadership to reduce job stress and improve performance quality in the hospitality industry. International Journal of Hospitality Management, 94, 102860. https://doi.org/https://doi.org/10.1016/j.ijhm.2021.102860

Seijts, G. H., & Milani, K. Y. (2022). The application of leader character to building cultures of equity, diversity, and inclusion. Business Horizons, 65(5), 573–590. https://doi.org/https://doi.org/10.1016/j.bushor.2021.07.007

Seijts, G., & Milani, K. Y. (2024). The character imperative: Creating a more just, prosperous, and sustainable future. Organizational Dynamics, 53(3), 101012. https://doi.org/https://doi.org/10.1016/j.orgdyn.2023.101012

Shafiq, A., Ahmed, M. U., & Mahmoodi, F. (2020). Impact of supply chain analytics and customer pressure for ethical conduct on socially responsible practices and performance: An exploratory study. International Journal of Production Economics, 225, 107571. https://doi.org/https://doi.org/10.1016/j.ijpe.2019.107571

Sovik, R. (2000). Chapter 34 - The science of breathing — the yogic view. In E. A. Mayer & C. B. B. T.-P. in B. R. Saper (Eds.), The Biological Basis for Mind Body Interactions (Vol. 122, pp. 491–505). Elsevier. https://doi.org/https://doi.org/10.1016/S0079-6123(08)62159-7

Sun, X., & Zhang, Q. (2021). Building digital incentives for digital customer orientation in platform ecosystems. Journal of Business Research, 137, 555–566. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.08.068

Treviño, L. K., den Nieuwenboer, N. A., Kreiner, G. E., & Bishop, D. G. (2014). Legitimating the legitimate: A grounded theory study of legitimacy work among Ethics and Compliance Officers. Organizational Behavior and Human Decision Processes, 123(2), 186–205. https://doi.org/https://doi.org/10.1016/j.obhdp.2013.10.009

Trivellas, P., Dekoulou, P., Polychroniou, P., & Tokakis, V. (2021). Which leadership roles modify employee perceptions of CSR activities? Job satisfaction implications in the case of the tourism industry. International Journal of Quality and Service Sciences, 13(4), 618–636. https://doi.org/10.1108/IJQSS-04-2020-0054

Tuan, L. T., & Ngan, V. T. (2021). Leading ethically to shape service-oriented organizational citizenship behavior among tourism salespersons: Dual mediation paths and moderating role of service role identity. Journal of Retailing and Consumer Services, 60, 102421. https://doi.org/https://doi.org/10.1016/j.jretconser.2020.102421

van Knippenberg, D., Giessner, S. R., Sleebos, E., & van Ginkel, W. P. (2021). A motivated information processing perspective on the antecedents of empowering leadership. Journal of Applied Social Psychology, 51(2), 79–89. https://doi.org/https://doi.org/10.1111/jasp.12718

van Riel, A. C. R., Andreassen, T. W., Lervik-Olsen, L., Zhang, L., Mithas, S., & Heinonen, K. (2021). A customer-centric five actor model for sustainability and service innovation. Journal of Business Research, 136, 389–401. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.07.035

Wang, W., Zhao, X. Z., Chen, F. W., Wu, C. H., Tsai, S., & Wang, J. (2019). The effect of corporate social responsibility and public attention on innovation performance: Evidence from high-polluting industries. International Journal of Environmental Research and Public Health, 16(20). https://doi.org/10.3390/ijerph16203939

Xie, J., Abbass, K., & Li, D. (2024). Advancing eco-excellence: Integrating stakeholders’ pressures, environmental awareness, and ethics for green innovation and performance. Journal of Environmental Management, 352, 120027. https://doi.org/https://doi.org/10.1016/j.jenvman.2024.120027

Zahn, W. J., Peng, Y., Mathis, D., Hochstein, B., & Plouffe, C. R. (2023). Addressing concerns with salesperson competitive psychological climate, sales performance, and turnover intention: The role of threat and learning orientation. Industrial Marketing Management, 115, 143–155. https://doi.org/https://doi.org/10.1016/j.indmarman.2023.09.011

Downloads

Published

2025-01-10

Issue

Vol. 1 No. 4 (2025): JEBI-January

Section

Articles

License

Copyright (c) 2025 Sehrish Nick, Cristina Larry , Eliana Costa (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Journal Economic Business Innovation (JEBI) © 2024 by Inovasi Analisis Data is licensed under CC BY-SA 4.0

How to Cite

The Dynamics of Ethical Leadership Enhance Customer Orientation in a Competitive Marketplace. (2025). Journal Economic Business Innovation, 1(4), 439-460. https://doi.org/10.69725/jebi.v1i4.135

Share

Similar Articles

1-10 of 24

You may also start an advanced similarity search for this article.