Ethical leadership and sustainability of agro-allied firms: moderating role of environmental dynamism

Ida Austin Ogaga, Charity A. Ezenwakwelu, Ejikeme Emmanuel Isichei and Taiwo Samuel Olabosinde

International Journal of Ethics and Systems, 2022, vol. 39, issue 1, 36-53

Abstract: Purpose - This paper aims to account for the direct effect of ethical leadership on the sustainability of agro-allied firms and the moderating effect of environmental dynamism on ethical leadership–organisational sustainability relation. Design/methodology/approach - A total of 215 managers participated in the survey, which covered agro-allied firms from the 6 geo-political zones of the country, Nigeria. Partial least square structural equation model was conducted with the aid of SmartPLSv3. Findings - The result confirms that ethical leadership positively affects the sustainability of firms in the agro-allied sector and also supports that environmental dynamism strengthens the relation between ethical leadership and sustainability of firms. Originality/value - The study advances ethical leadership literature through a nuanced examination of its relevance in the agricultural sector, while also validating the integrative social contract theory as a theoretical lens used in exploring the relationship. The specific focus on “ethical” leadership and a specific sector of the economy – agro allied firms is a new ground by not just looking at leadership but the ethical consideration part in relation to a specific industry where competition is a key driver to management/leadership performance.

Keywords: Environmental dynamism; Ethical leadership; Sustainability; Agro-allied firms; Nigeria (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijoesp:ijoes-12-2021-0226

DOI: 10.1108/IJOES-12-2021-0226

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