Inducing employee performance among state-owned enterprises, through employee ethical behaviour and ethical leadership

Abstract

Purpose This study aims to examine how ethical leadership enhances the relationship between employee ethical behaviour and the job performance of employees in state-owned enterprises (SOEs). Design/methodology/approach This study was a survey, with data collected using a structured questionnaire. The study focused on employees from SOEs in Ghana. The sample covers 238 employees drawn from 10 SOEs. Data was analyzed using structural equation modelling. Findings The study concludes that employee ethical behaviour positively influenced the job performance of employees of SOEs in Ghana. The effect of ethical leadership on employee job performance was positively significant. Finally, ethical leadership positively moderated the effect of employee ethical behaviour on the job performance of employees of SOEs. Research limitations/implications Future research should look at identifying the specific behaviours of ethical employees that influence improved job performance. Also, future research could conduct a comparative study of private-owned enterprises and SOEs. Practical implications Attention should also be paid to ethical leadership, as it strongly enhanced both employee job performance and the quality of employee ethical behaviour required for increased job performance of employees. Originality/value Extant studies have paid limited attention to understanding how the interaction between employee ethical behaviour and ethical leadership will enhance employee job performance.