Open Access
Beyond Ethics: Exploring the Indirect Effect of Subordinate Extraversion and Agreeableness on Sustainable Performance and Moderating Role of Psychological Diversity Climate
Keywords:
Ethical leadership
Sustainable performance
Subordinate extroversion
Agreeableness
Psychological diversity climate
Social rank theory
Abstract
Aim: The study aims to explore sustainable performance antecedents and the moderating and mediating variables in such associations. This study is to explore the relationship between ethical leadership and sustainable performance, with the moderating influence of psychological diversity climate and the mediating function of agreeableness and subordinate extroversion. Methodology: This study focused on the SMEs located in Lisbon and Porto regions, and information was gathered from 310 middle and senior managers employed by SMEs. These answers were examined through the use of moment structure analysis technique. Findings: The SPSS 24 and Smart PLS 4 were used for statistical analysis and findings showed that subordinate extroversion and agreeableness have a major mediating effect between sustainable performance and ethical leadership. Furthermore, the association between subordinate extroversion and agreeableness and sustainable performance is strongly moderated by psychological diversity climate. Implications/Novel Contribution: Middle and senior managers of SMEs can naturally reach the highest level of sustainability if they emphasize agreeableness and extroversion and adhere to the ethical leadership strategy. Its impact on subordinate extroversion, agreeableness, and eventually sustained performance is highlighted. Additionally, psychological diversity climate moderated the relationship between ethical leadership and sustainable performance. Study brings key practical and policy insights for scholars’ researchers and social sciences researchers as well as policy makers.References
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Cahyono, E., & Widarjo, W. (2022). Abusive leader and employee’s job satisfaction: The role of extraversion. Age (Year), 50(4), 41-50.
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Chiotis, K., & Michaelides, G. (2022). Crossover of work engagement: The moderating role of agreeableness. International Journal of Environmental Research and Public Health, 19(13), 7622.
Dey, M., Bhattacharjee, S., Mahmood, M., Uddin, M. A., & Biswas, S. R. (2022). Ethical leadership for better sustainable performance: Role of employee values, behavior and ethical climate. Journal of Cleaner Production, 337, 130527.
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Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
Fosse, T. H., Martinussen, M., Sørlie, H. O., Skogstad, A., Martinsen, Ø. L., & Einarsen, S. V. (2024). Neuroticism as an antecedent of abusive supervision and laissez-faire leadership in emergent leaders: The role of facets and agreeableness as a moderator. Applied Psychology, 73(2), 675-697.
Hair, J. F., Sharma, P. N., Sarstedt, M., Ringle, C. M., & Liengaard, B. D. (2024). The shortcomings of equal weights estimation and the composite equivalence index in PLS-SEM. European Journal of Marketing, 58(13), 30-55.
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Ji, T., de Jonge, J., Peeters, M. C., & Taris, T. W. (2021). Employee sustainable performance (E-SuPer): Theoretical conceptualization, scale development, and psychometric properties. International Journal of Environmental Research and Public Health, 18(19), 10497.
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Khaw, T. Y., Teoh, A. P., Khalid, S. N. A., & Letchmunan, S. (2022). The impact of digital leadership on sustainable performance: a systematic literature review. Journal of Management Development, 41(9/10), 514-534.
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Kundi, Y. M., Ahmad, F., & Nazir, U. (2024). Ethics, faith, and engagement: Unpacking the effect of voice climate on work engagement. Journal of Business Ethics, 11, 1-15.
Liegl, S., & Furtner, M. R. (2023). Introverted and yet effective? A faceted approach to the relationship between leadership and extraversion. Frontiers in Psychology, 14, 1185271.
Mahadevan, N., Gregg, A. P., & Sedikides, C. (2023a). Daily fluctuations in social status, self-esteem, and clinically relevant emotions: Testing hierometer theory and social rank theory at a within-person level. Journal of Personality, 91(2), 519-536.
Mahadevan, N., Gregg, A. P., & Sedikides, C. (2023b). How does social status relate to self-esteem and emotion? An integrative test of hierometer theory and social rank theory. Journal of Experimental Psychology: General, 152(3), 632.
Moran, A. O. (2023). The influence of ethical leadership and sustainable leadership on sustainable performance: The moderating role of gender. International Journal of Economics & Business Administration (IJEBA), 11(3), 97-113.
Nandkeolyar, A. K., Bagger, J., & Ekkirala, S. (2022). Damned if she does, damned if she doesn’t: The interactive effects of gender and agreeableness on performance evaluation. Journal of Business Research, 143, 62-71.
Ohana, M., Stinglhamber, F., & Caesens, G. (2023). Coworkers’ interpersonal justice and team citizenship behaviors: Mediation of social exchange and identity and moderation of extraversion. European Business Review, 35(6), 924-940.
Pugh, S. D., Dietz, J., Brief, A. P., & Wiley, J. W. (2008). Looking inside and out: The impact of employee and community demographic composition on organizational diversity climate. Journal of Applied Psychology, 93(6), 1422.
Shoaib, M., Nawal, A., Zámecník, R., Korsakien ˇ e, R., & Rehman, A. U. (2022). Go green! measuring the factors ˙ that influence sustainable performance. Journal of Cleaner Production, 366, 132959.
Wang, Y., Dunlop, P. D., Parker, S. K., Griffin, M. A., & Gachunga, H. (2022). The moderating role of honesty-humility in the association of agreeableness with interpersonal competency: a study of managers in two countries. Applied Psychology, 71(1), 219-242.
Wilmot, M. P., & Ones, D. S. (2022). Agreeableness and its consequences: A quantitative review of meta-analytic findings. Personality and Social Psychology Review, 26(3), 242-280.
Beasley, M., Sabatinelli, D., & Obasi, E. (2012). Neuroimaging evidence for social rank theory. Frontiers in Human Neuroscience, 6, 123.
Blake, A. B., Luu, V. H., Petrenko, O. V., Gardner, W. L., Moergen, K. J., & Ezerins, M. E. (2022). Let’s agree about nice leaders: A literature review and meta-analysis of agreeableness and its relationship with leadership outcomes. The Leadership Quarterly, 33(1), 101593.
Boeske, J. (2023). Leadership towards sustainability: a review of sustainable, sustainability, and environmental leadership. Sustainability, 15(16), 12626.
Brown, M. E., Treviño, L. K., & Harrison, D. A. (2005). Ethical leadership: A social learning perspective for construct development and testing. Organizational Behavior and Human Decision Processes, 97(2), 117-134.
Cahyono, E., & Widarjo, W. (2022). Abusive leader and employee’s job satisfaction: The role of extraversion. Age (Year), 50(4), 41-50.
Chifokoyo, L. (2023). Employee’s vantage point: How the perception of supervisor’s narcissism and agreeableness impacts employee’s perceived organizational support. Unpublished master’s thesis, Azusa Pacific University.
Chiotis, K., & Michaelides, G. (2022). Crossover of work engagement: The moderating role of agreeableness. International Journal of Environmental Research and Public Health, 19(13), 7622.
Dey, M., Bhattacharjee, S., Mahmood, M., Uddin, M. A., & Biswas, S. R. (2022). Ethical leadership for better sustainable performance: Role of employee values, behavior and ethical climate. Journal of Cleaner Production, 337, 130527.
Donnellan, M. B., Oswald, F. L., Baird, B. M., & Lucas, R. E. (2006). The mini-IPIP scales: tiny-yet-effective measures of the Big Five factors of personality. Psychological Assessment, 18(2), 192.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
Fosse, T. H., Martinussen, M., Sørlie, H. O., Skogstad, A., Martinsen, Ø. L., & Einarsen, S. V. (2024). Neuroticism as an antecedent of abusive supervision and laissez-faire leadership in emergent leaders: The role of facets and agreeableness as a moderator. Applied Psychology, 73(2), 675-697.
Hair, J. F., Sharma, P. N., Sarstedt, M., Ringle, C. M., & Liengaard, B. D. (2024). The shortcomings of equal weights estimation and the composite equivalence index in PLS-SEM. European Journal of Marketing, 58(13), 30-55.
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.
Ji, T., de Jonge, J., Peeters, M. C., & Taris, T. W. (2021). Employee sustainable performance (E-SuPer): Theoretical conceptualization, scale development, and psychometric properties. International Journal of Environmental Research and Public Health, 18(19), 10497.
Khanam, Z., Tarab, S., & Khan, Z. (2023). Examining the link between responsible leadership and employee sustainable performance: the mediating role of ethical climate. Journal of Economic and Administrative Sciences.
Khaw, T. Y., Teoh, A. P., Khalid, S. N. A., & Letchmunan, S. (2022). The impact of digital leadership on sustainable performance: a systematic literature review. Journal of Management Development, 41(9/10), 514-534.
Krautter, K., Büchner, A., & Jachimowicz, J. M. (2023). Extraverts reap greater social rewards from passion because they express passion more frequently and more diversely. Personality and Social Psychology Bulletin, 22, 01461672231211843.
Kundi, Y. M., Ahmad, F., & Nazir, U. (2024). Ethics, faith, and engagement: Unpacking the effect of voice climate on work engagement. Journal of Business Ethics, 11, 1-15.
Liegl, S., & Furtner, M. R. (2023). Introverted and yet effective? A faceted approach to the relationship between leadership and extraversion. Frontiers in Psychology, 14, 1185271.
Mahadevan, N., Gregg, A. P., & Sedikides, C. (2023a). Daily fluctuations in social status, self-esteem, and clinically relevant emotions: Testing hierometer theory and social rank theory at a within-person level. Journal of Personality, 91(2), 519-536.
Mahadevan, N., Gregg, A. P., & Sedikides, C. (2023b). How does social status relate to self-esteem and emotion? An integrative test of hierometer theory and social rank theory. Journal of Experimental Psychology: General, 152(3), 632.
Moran, A. O. (2023). The influence of ethical leadership and sustainable leadership on sustainable performance: The moderating role of gender. International Journal of Economics & Business Administration (IJEBA), 11(3), 97-113.
Nandkeolyar, A. K., Bagger, J., & Ekkirala, S. (2022). Damned if she does, damned if she doesn’t: The interactive effects of gender and agreeableness on performance evaluation. Journal of Business Research, 143, 62-71.
Ohana, M., Stinglhamber, F., & Caesens, G. (2023). Coworkers’ interpersonal justice and team citizenship behaviors: Mediation of social exchange and identity and moderation of extraversion. European Business Review, 35(6), 924-940.
Pugh, S. D., Dietz, J., Brief, A. P., & Wiley, J. W. (2008). Looking inside and out: The impact of employee and community demographic composition on organizational diversity climate. Journal of Applied Psychology, 93(6), 1422.
Shoaib, M., Nawal, A., Zámecník, R., Korsakien ˇ e, R., & Rehman, A. U. (2022). Go green! measuring the factors ˙ that influence sustainable performance. Journal of Cleaner Production, 366, 132959.
Wang, Y., Dunlop, P. D., Parker, S. K., Griffin, M. A., & Gachunga, H. (2022). The moderating role of honesty-humility in the association of agreeableness with interpersonal competency: a study of managers in two countries. Applied Psychology, 71(1), 219-242.
Wilmot, M. P., & Ones, D. S. (2022). Agreeableness and its consequences: A quantitative review of meta-analytic findings. Personality and Social Psychology Review, 26(3), 242-280.
Published
2024-12-23
How to Cite
Altaf Akbar. (2024). Beyond Ethics: Exploring the Indirect Effect of Subordinate Extraversion and Agreeableness on Sustainable Performance and Moderating Role of Psychological Diversity Climate. Journal of Advanced Research in Social Sciences and Humanities, 9(4), 17-30. https://doi.org/10.26500/JARSSH-09-2024-0402
Section
Articles
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
