Exploring ethical leadership influence on organizational effectiveness within Vietnamese SMEs and the mediating contributions of knowledge sharing and organizational learning

Ling Yuan, Mai-Linh Pham, Manh-Cuong Vu, Son-Van Pham, Quy-Huynh Quy-Huynh, Thanh-Linh Nguyen

Article ID: 6598
Vol 8, Issue 10, 2024

VIEWS - 1299 (Abstract)

Abstract


This research delves into the intricate dynamics of ethical leadership within the context of Vietnamese Small and Medium Enterprises (SMEs). By scrutinizing its impact on organizational effectiveness, the study unveils a comprehensive understanding of the interconnectedness between ethical leadership, knowledge sharing, and organizational learning. Employing a mixed-methods approach, the research investigates the mediating roles played by knowledge sharing and organizational learning in the relationship between ethical leadership and organizational effectiveness. Through empirical analysis and case studies, this study contributes valuable insights to the literature, offering practical implications for fostering ethical leadership practices in Vietnamese SMEs to enhance overall organizational effectiveness. The findings shed light on the nuanced mechanisms through which ethical leadership contributes to sustainable success, emphasizing the pivotal roles of knowledge sharing and organizational learning in this intricate relationship.


Keywords


ethical leadership; organizational effectiveness; knowledge sharing; organizational learning; SMEs

Full Text:

PDF


References

  1. Abubakar, A. M., Elrehail, H., Alatailat, M. A., et al. (2019). Knowledge management, decision-making style and organizational performance. Journal of Innovation & Knowledge, 4(2), 104–114. https://doi.org/10.1016/j.jik.2017.07.003
  2. Alblooshi, M., Shamsuzzaman, M., & Haridy, S. (2020). The relationship between leadership styles and organizational innovation: A systematic literature review and narrative synthesis. European Journal of Innovation Management, 24(2), 338–370. https://doi.org/10.1108/ejim-11-2019-0339
  3. Ali, A., Wang, H., & Johnson, R. E. (2020). Empirical analysis of shared leadership promotion and team creativity: An adaptive leadership perspective. Journal of Organizational Behavior, 41(5), 405–423. https://doi.org/10.1002/job.2437
  4. Alshammari, A. A. (2020). The impact of human resource management practices, organizational learning, organizational culture and knowledge management capabilities on organizational performance in Saudi organizations: A conceptual framework. 2020. 29, 714. https://www.revistaclinicapsicologica.com/data-cms/articles/20201004054927pmSSCI-219.pdf
  5. Asif, M., Hussain, M. A., Humayun, S., et al. (2023). Investigating the Role of Ethical Leadership on Employee Innovativeness through Bottom-Up Job Redesigning: Self-Leadership as a Catalyst. Sustainability, 15(9), 7190. https://doi.org/10.3390/su15097190
  6. Aslam, M. S., Ali, I., Qammar, A., et al. (2022). How knowledge acquisition creates a competitive edge? A qualitative inquiry from international consultancy alliance. International Marketing Review, 39(3), 653–681. https://doi.org/10.1108/imr-03-2021-0111
  7. Azeem, M., Ahmed, M., Haider, S., et al. (2021). Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66, 101635. https://doi.org/10.1016/j.techsoc.2021.101635
  8. Banks, G. C., Fischer, T., Gooty, J., et al. (2021). Ethical leadership: Mapping the terrain for concept cleanup and a future research agenda. The Leadership Quarterly, 32(2), 101471. https://doi.org/10.1016/j.leaqua.2020.101471
  9. Bellemare, M. G., Candido, S., Castro, P. S., et al. (2020). Autonomous navigation of stratospheric balloons using reinforcement learning. Nature, 588(7836), 77–82. https://doi.org/10.1038/s41586-020-2939-8
  10. Bhatti, S. H., Kiyani, S. K., Dust, S. B., et al. (2021). The impact of ethical leadership on project success: the mediating role of trust and knowledge sharing. International Journal of Managing Projects in Business, 14(4), 982–998. https://doi.org/10.1108/ijmpb-05-2020-0159
  11. Bilan, Y., Hussain, H. I., Haseeb, M., et al. (2020). Sustainability and Economic Performance: Role of Organizational Learning and Innovation. Engineering Economics, 31(1), 93–103. https://doi.org/10.5755/j01.ee.31.1.24045
  12. Birasnav, M., Gantasala, S. B., Gantasala, V. P., et al. (2022). Total quality leadership and organizational innovativeness: the role of social capital development in American schools. Benchmarking: An International Journal, 30(3), 811–833. https://doi.org/10.1108/bij-08-2021-0470
  13. Castellano, S., Chandavimol, K., Khelladi, I., et al. (2021). Impact of self-leadership and shared leadership on the performance of virtual R&D teams. Journal of Business Research, 128, 578–586. https://doi.org/10.1016/j.jbusres.2020.12.030
  14. Chedid, M., Caldeira, A., Alvelos, H., et al. (2019). Knowledge-sharing and collaborative behavior: An empirical study on a Portuguese higher education institution. Journal of Information Science, 46(5), 630–647. https://doi.org/10.1177/0165551519860464
  15. Chienwattanasook, K. & Jermsittiparsert, K. J. (2019). Influence of Entrepreneurial Orientation and Total Quality Management on Organizational Performance of Pharmaceutical SMEs in Thailand with moderating role of Organizational Learning. Sys Rev Pharm, 10(2), 223-233
  16. Christofi, K., Chourides, P., & Papageorgiou, G. (2023). Cultivating strategic agility—An empirical investigation into best practice. Global Business and Organizational Excellence, 43(3), 89–105. https://doi.org/10.1002/joe.22241
  17. Curado, C., & Vieira, S. (2019). Trust, knowledge sharing and organizational commitment in SMEs. Personnel Review, 48(6), 1449–1468. https://doi.org/10.1108/pr-03-2018-0094
  18. Do, H., Budhwar, P., Shipton, H., et al. (2022). Building organizational resilience, innovation through resource-based management initiatives, organizational learning and environmental dynamism. Journal of Business Research, 141, 808–821. https://doi.org/10.1016/j.jbusres.2021.11.090
  19. Dzhengiz, T. (2020). A Literature Review of Inter-Organizational Sustainability Learning. Sustainability, 12(12), 4876. https://doi.org/10.3390/su12124876
  20. Flückiger, C., Rubel, J., Del Re, A. C., et al. (2020). The reciprocal relationship between alliance and early treatment symptoms: A two-stage individual participant data meta-analysis. Journal of Consulting and Clinical Psychology, 88(9), 829–843. https://doi.org/10.1037/ccp0000594
  21. George, B., Walker, R. M., & Monster, J. (2019). Does Strategic Planning Improve Organizational Performance? A Meta-Analysis. Public Administration Review, 79(6), 810–819. https://doi.org/10.1111/puar.13104
  22. Gerbin, A., & Drnovsek, M. (2020). Knowledge-sharing restrictions in the life sciences: personal and context-specific factors in academia–industry knowledge transfer. Journal of Knowledge Management, 24(7), 1533–1557. https://doi.org/10.1108/jkm-11-2019-0651
  23. Helmy, I., Adawiyah, W. R. & Banani, A. J. (2019). Linking psychological empowerment, knowledge sharing, and employees’ innovative behavior in Indonesian SMEs. The Journal of Behavioral Science. 14(2), 66–79.
  24. Kareem, M. A., & Hussein, I. J. (2019). The Impact of Human Resource Development on Employee Performance and Organizational Effectiveness. Management Dynamics in the Knowledge Economy, 7(3), 307–322. https://doi.org/10.25019/mdke/7.3.02
  25. Kia, N., Halvorsen, B., & Bartram, T. (2019). Ethical leadership and employee in-role performance: The mediating roles of organisational identification, customer orientation, service climate, and ethical climate. Personnel Review, 48(7), 1716–1733. https://doi.org/10.1108/pr-12-2018-0514
  26. Kim, M.-S., & Thapa, B. (2018). Relationship of Ethical Leadership, Corporate Social Responsibility and Organizational Performance. Sustainability, 10(2), 447. https://doi.org/10.3390/su10020447
  27. Kordab, M., Raudeliūnienė, J., & Meidutė-Kavaliauskienė, I. (2020). Mediating Role of Knowledge Management in the Relationship between Organizational Learning and Sustainable Organizational Performance. Sustainability, 12(23), 10061. https://doi.org/10.3390/su122310061
  28. Ling, Y., Cường, V. M. & Nhung, N. T. T. (2019). Effect of Ethical Leadership and Leader-Member Exchange on Voice Behavior-Moderating Impact of Empowerment. European Journal of International Management, 11(9):116-123
  29. Memon, S. B., Qureshi, J. A., & Jokhio, I. A. (2020). The role of organizational culture in knowledge sharing and transfer in Pakistani banks: A qualitative study. Global Business and Organizational Excellence, 39(3), 45–54. https://doi.org/10.1002/joe.21997
  30. Mutonyi, B. R., Slåtten, T., & Lien, G. (2020). Empowering leadership, work group cohesiveness, individual learning orientation and individual innovative behavior in the public sector: empirical evidence from Norway. International Journal of Public Leadership, 16(2), 175–197. https://doi.org/10.1108/ijpl-07-2019-0045
  31. Namdech, P., Mitprasat, M., Rotjanawasuthorn, S., et al. (2023). Commitment and job satisfaction as mechanisms connecting ethical leadership and CSR with turnover intention. Asian Crime and Society Review. 10 (2), 29–39. https://doi.org/10.14456/acsr.2023.4
  32. Oh, M., & Choi, S. (2020). The Competence of Project Team Members and Success Factors with Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), 51. https://doi.org/10.3390/joitmc6030051
  33. Olan, F., Liu, S., Neaga, I., et al. (2019). How cultural impact on knowledge sharing contributes to organizational performance: Using the fsQCA approach. Journal of Business Research, 94, 313–319. https://doi.org/10.1016/j.jbusres.2018.02.027
  34. Orieno, O. H., Udeh, C. A., Oriekhoe, O. I., et al. (2024). Innovative management strategies in contemporary organizations: a review: analyzing the evolution and impact of modern management practices, with an emphasis on leadership, organizational culture, and change management. International Journal of Management & Entrepreneurship Research, 6(1), 167–190. https://doi.org/10.51594/ijmer.v6i1.727
  35. Pellegrini, M. M., Ciampi, F., Marzi, G., et al. (2020). The relationship between knowledge management and leadership: mapping the field and providing future research avenues. Journal of Knowledge Management, 24(6), 1445–1492. https://doi.org/10.1108/jkm-01-2020-0034
  36. Purwanto, A. J. (2020). Effect of hard skills, soft skills, organizational learning and innovation capability on Islamic University lecturers’ performance. Systematic Reviews in Pharmacy.
  37. Russ, M. (2021). Knowledge Management for Sustainable Development in the Era of Continuously Accelerating Technological Revolutions: A Framework and Models. Sustainability, 13(6), 3353. https://doi.org/10.3390/su13063353
  38. Saha, R., Shashi, Cerchione, R., Singh, R., et al. (2019). Effect of ethical leadership and corporate social responsibility on firm performance: A systematic review. Corporate Social Responsibility and Environmental Management, 27(2), 409–429. https://doi.org/10.1002/csr.1824
  39. Setini, M., Yasa, N. N. K., Gede Supartha, I. W., et al. (2020). The Passway of Women Entrepreneurship: Starting from Social Capital with Open Innovation, through to Knowledge Sharing and Innovative Performance. Journal of Open Innovation: Technology, Market, and Complexity, 6(2), 25. https://doi.org/10.3390/joitmc6020025
  40. Sharma, A., Agrawal, R., & Khandelwal, U. (2019). Developing ethical leadership for business organizations: A conceptual model of its antecedents and consequences. Leadership & Organization Development Journal, 40(6), 712–734. https://doi.org/10.1108/lodj-10-2018-0367
  41. Sheikh, A. A., Ishaq, Q.-A., & Inam, A. (2019). Fostering creativity through servant leadership: Mediating role of knowledge sharing, thriving at work and burnout. Abasyn Journal of Social Sciences, 12(2). https://doi.org/10.34091/ajss.12.2.01
  42. Shteynberg, G., Hirsh, J. B., Bentley, R. A., et al. (2020). Shared worlds and shared minds: A theory of collective learning and a psychology of common knowledge. Psychological Review, 127(5), 918–931. https://doi.org/10.1037/rev0000200
  43. Smaldino, P. E., Moser, C. J., Velilla, A. P., et al. (2022). Maintaining transient diversity is a general principle for improving collective problem solving. https://doi.org/10.31235/osf.io/ykrv5
  44. Somjai, S., Siriattakul, P. J. A. E. & Jaepho, S. (2023). Organizational learning and innovative culture as a Potential Mediators connecting transformational and transactional leadership with organizational performance: a study on Thai SMEs. Asian Education and Learning Review, 1, 14–26. https://doi.org/10.14456/aelr.2023.7
  45. Song, Z., Gu, Q., & Cooke, F. L. (2019). The effects of high‐involvement work systems and shared leadership on team creativity: A multilevel investigation. Human Resource Management, 59(2), 201–213. https://doi.org/10.1002/hrm.21988
  46. Suran, S., Pattanaik, V., & Draheim, D. (2020). Frameworks for Collective Intelligence. ACM Computing Surveys, 53(1), 1–36. https://doi.org/10.1145/3368986
  47. Nguyen, T.-T.-N., & Vu, M.-C. (2023). Relationship Between Transformational Leadership and Organizational Learning Support Employee Creativity: Evidence from Vietnamese SMEs. International Journal of Professional Business Review, 8(7), e01831. https://doi.org/10.26668/businessreview/2023.v8i7.1831
  48. Tushar, H. J. (2017). The role of ethical leadership in developing sustainable organization. Australasian journal of law, ethics, & governance, 2, 83–95.
  49. Van, H. K., Linh, P. M., Nhung, N. T. T., et al. (2023). Linking Ethical Leadership to Employee Creative Performance: The Role of Leader-Member Exchange and Work Engagement. International Journal of Professional Business Review, 8(8), e03046. https://doi.org/10.26668/businessreview/2023.v8i8.3046
  50. Vu, M. -C., Pham, V. -D. & Hoang, T. -H. (2023). Linking organizational justice and knowledge sharing: An empirical investigation of SMEs in Vietnam. Nurture, 18(1), 16–34. https://doi.org/10.55951/nurture.v18i1.519
  51. Vu, M.-C., Tran, Q.-T., & Nguyen, T.-T.-N. (2020). Ethical Leadership Connects Voice Behavior: The Mediating Role of Harmony. Journal of Business and Economic Development, 5(2), 56. https://doi.org/10.11648/j.jbed.20200502.11
  52. Vu, M.-C. (2023). Relationship Between Transformational Leadership and Organizational Learning Support Employee Creativity: Evidence from Vietnamese SMEs. International Journal of Professional Business Review, 8(7), e01831. https://doi.org/10.26668/businessreview/2023.v8i7.1831
  53. Wahab, S. A. (2023). Appreciative Leadership: A Mixed Methods Study of School Leadership in Pakistan. University of Canterbury.
  54. Wallo, A., Lundqvist, D., & Coetzer, A. (2024). Learning-Oriented Leadership in Organizations: An Integrative Review of Qualitative Studies. Human Resource Development Review, 23(2), 230–275. https://doi.org/10.1177/15344843241239723
  55. Wang, C., & Hu, Q. (2020). Knowledge sharing in supply chain networks: Effects of collaborative innovation activities and capability on innovation performance. Technovation, 94–95, 102010. https://doi.org/10.1016/j.technovation.2017.12.002
  56. Wangkit, S. & Punpanich, N. J. (2019). Management Approach of Small and Medium Food Processing Business for Success in Franchise System. 2(2). PSAKU International Journal of Interdisciplinary Research, Forthcoming.
  57. Wei, H., Corbett, R. W., Ray, J., et al. (2019). A culture of caring: the essence of healthcare interprofessional collaboration. Journal of Interprofessional Care, 34(3), 324–331. https://doi.org/10.1080/13561820.2019.1641476
  58. Yaghi, M. J., Accountability & Ethics. (2019). Toxic Leadership and the Organizational Commitment of Senior-Level Corporate Executives. Journal of Leadership, Accountability and Ethics, 16(4). https://doi.org/10.33423/jlae.v16i4.2375
  59. Yuan, L., Nhung, N. T. T., & Vu, M. C. (2017). Understanding Transformational Leadership-Employee Performance Links: The Role of Trust and Commitment. European Journal of Business and Management.
  60. Yuan, L., Pham, M.-L., Dang, T., et al. (2022). Linking ethical leadership to job satisfaction and work engagement: The mediating role of psychological empowerment. Journal of International Business and Management. 5(12), 1–16.
  61. Zaim, H., Demir, A., & Budur, T. (2021). Ethical leadership, effectiveness and team performance: an Islamic perspective. Middle East J. of Management, 8(1), 42. https://doi.org/10.1504/mejm.2021.111991
  62. Zhang, X., Chu, Z., Ren, L., et al. (2023). Open innovation and sustainable competitive advantage: The role of organizational learning. Technological Forecasting and Social Change, 186, 122114. https://doi.org/10.1016/j.techfore.2022.122114


DOI: https://doi.org/10.24294/jipd.v8i10.6598

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Ling Yuan, Mai-Linh Pham, Manh-Cuong Vu, Son-Van Pham, Quy-Huynh, Thanh-Linh Nguyen

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.