The Nexus of Ethical Leadership, Job Performance, and Turnover Intention: The Mediating Role of Job Satisfaction

Abstract

This study aims to examine the impact of ethical leadership on employees' job satisfaction, job performance, and turnover intention. A conceptual framework is developed which integrates job satisfaction as a mediating mechanism in explaining the nexus among ethical leadership, employee job performance, and turnover intention. The proposed model is tested by using the data collected from a sample (n = 196) of tourist companies in Pakistan. The results reveal that ethical leadership has a positive effect on employees' job satisfaction, job performance and negative effect on employees' turnover intentions. Further, job satisfaction mediates the effect of ethical leadership on employees' job performance and turnover intentions. The findings recommend that the demonstration of ethical leadership behaviours by managers at the workplace increases the likelihood of employees' job satisfaction and performance, while reducing their intention to leave the job. This study elucidates that, in Pakistani tourism sector, ethical leadership plays a key role in achieving performance goals. Future research could analyse the said nexus in different sectors and across different cultures while considering other measures of individual performance. The originality of this study is theorizing as well as empirically testing the intervening mechanism of job satisfaction in probing the linkages among ethical leadership, job performance, and turnover intention in Pakistani workplace context.

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