PurposeThe purpose of this paper is to investigate the extent to which perceived leadership integrity influences changes in organisational commitment. The premise of the study is the argument that non-financial rewards alleviate the challenges associated with low levels of commitment in economies that are riddled with incessant situations of economic scarcity.Design/methodology/approachAn explanatory study approach was adopted to investigate the envisaged linkage between the study variables from a socio-psychological perspective.FindingsThe results of the study establish that perceived leadership integrity significantly influences variations in commitment among organisational employees.Research limitations/implicationsThe study results provide a reason for firms to invest more resources towards promoting honesty among organisational leaders. The findings of the study support the idea that perceived integrity of an organisation's leadership generates a sustainable win–win position not only between the organisation and employees, but also among the leaders and subordinates.Practical implicationsOrganisations must regularly consider the drivers of organisational commitment and pay sufficient attention to non-financial drivers. As advanced by this study, a very important yet economical way of effecting such a strategy is through instituting measures that sustainably create a perception among employees that organisational leaders execute their duties with the utmost integrity.Originality/valueThis article has both empirical and theoretical value. Empirically, this work is the first of its kind aimed at investigating the effect of perceived leadership integrity on organisational commitment within Uganda's hospitality setting. Theoretically, the study extends the versatility of the hierarchy of needs theory by clarifying that higher-level needs offer a basis for explaining the effect of psychological processes (in this case, perceived leadership integrity) on behavioural changes (in this case, organisational commitment).
This paper tests the moderating role of firm age on the relationship between Chief Executive Officer (CEO) duality and financial performance among manufacturing firms in Uganda. A cross section survey was adopted using 78 manufacturing firms in Uganda. Data was analyzed using descriptive statistics, correlation and hierarchical regression. Modgraph software was also used to ascertain the validity of the set hypothesis. Results reveal that whether the CEO doubles as chairman of board or not, this does not significantly affect firm Financial Performance. However, as the firms grow older, the role of CEO-Board Chairman duality phenomenon gains significance in determining financial performance. Therefore, as firms grow in age, the CEOs should not be the same as Board chairpersons if firms have to perform well financially. Since only a single research methodological approach was employed in this study, future research can undertake to use a mixed methods approach to provide more detailed insights. Further, a longitudinal approach can also be employed to study financial performance trends among manufacturing firms over years. Entrepreneurs of these firms should put emphasis on proper segregation of the CEO role and those of the board chairman especially as firms grow in age. A moderating role of firm age on the relationship between CEO duality and financial performance was tested among manufacturing firms; previous studies have tended to test the direct or mediating effects.
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