The Power of Ethical Leadership in Sales Effectiveness: Mediating Roles of Accountability and Commitment

Chuen Hua Pan () and Lu Ming Tseng ()
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Chuen Hua Pan: Taichung Veterans General Hospital
Lu Ming Tseng: Department of Risk Management and Insurance, Feng Chia University, Taiwan

Management Research and Practice, 2024, vol. 16, issue 3, 19-33

Abstract: Some sales managers embrace unethical techniques to improve their sales divisions' efficiency. In this study, our research question is: "How does ethical leadership increase the sales divisions' effectiveness? This study examines the influence of ethical leadership on sales divisions' effectiveness. The mediating effects of felt accountability and organizational commitment in the relationships are further tested. The full-time salespeople working for the life insurance companies were recruited to join the investigation. A total of 450 questionnaires were disseminated among the participants, subsequently yielding 382 completed and valid responses. Findings reveal a significant positive correlation between ethical leadership and both felt accountability and organizational commitment. Moreover, felt accountability emerges as a crucial factor mediating the relationship between ethical leadership and organizational commitment. The study underscores the importance of further exploring the mediating effects of felt accountability and organizational commitment on ethical leadership and organizational effectiveness. The implications of this research extend to both academia and industry. For researchers, it offers insights into the unique challenges within the life insurance industry, shedding light on the necessity of ethical leadership in sales management. Moreover, it adds complexity to the study of ethical leadership by examining its influence on factors like felt accountability and organizational commitment. For insurance practitioners, the findings provide actionable insights to enhance decision-making and organizational performance.

Keywords: ethical leadership; felt accountability; organizational commitment; effectiveness; life insurance salespeople. (search for similar items in EconPapers)
Date: 2024
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