Fair leadership and job satisfaction: insights from SMEs

Nadine Hojaili, Charbel Salloum, Hajer Jarrar and Marc Valax

International Journal of Entrepreneurship and Small Business, 2025, vol. 56, issue 3, 366-390

Abstract: This study examines how fairness and leadership affect job satisfaction in Lebanese small and medium-sized enterprises (SMEs), drawing on social exchange theory. Analysing responses from 1,127 participants using structural equation modelling, the findings show that interactional justice - or fair and respectful treatment by leaders - positively influences leader-member exchange and job satisfaction, reinforcing the importance of quality leadership. Contrary to expectations, procedural justice - or fairness in processes - does not directly improve leader-member relationships, hinting that specific situational factors might play a more crucial role. Furthermore, the anticipated mediating role of leader-member exchange between procedural justice and job satisfaction was not supported, nor was gender found to significantly affect these relationships. These results suggest the need for SMEs to focus on personalised leadership and fair communication to enhance employee relations and satisfaction, regardless of gender. The study highlights the significance of adopting inclusive practices and effective crisis management strategies that prioritise both procedural and interactional justice to build organisational resilience.

Keywords: procedural justice; PJ; interactional justice; leader-member exchange; gender-inclusive. (search for similar items in EconPapers)
Date: 2025
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