The Effect of Perceived Ethical Leadership on Organizational Commitment of Hospitality Employees: The Case of Bordrum

Abstract

Purpose – The study aimed to examine the perceptions of ethical leadership and organizational commitment of hospitality employees and to reveal the effects of ethical leadership perception on organizational commitment and its sub-dimensions, namely, emotional, continuance and normative commitment.
Design/methodology/approach – In the study conducted with quantitative research methods, questionnaire technique was used for gathering data. In total, 375 research data were collected from the hospitality employees in Bodrum. Confirmatory factor analysis was applied to examine the validity of the research scales, and the hypotheses were tested with the structural equation modelling.
Results – The findings of the structural equation modeling revealed a partial but significant relationship between ethical leadership and the broader concept of organizational commitment. The results of the analyses confirmed that ethical leadership positively influences two of the three sub-dimensions. In contrast, the model showed no statistically significant relationship between perceived ethical leadership and emotional commitment. This outcome indicates that while ethical leadership fosters commitment based on duty and necessity, it does not, in this context, translate into a stronger emotional bond between the employee and the organization.
Discussion – The success of tourism enterprises in today's competitive conditions depends on possessing a qualified workforce that is committed to the organization. As this study aimed to determine the effect of hospitality employees' perceptions of ethical leadership on their organizational commitment, the findings provide important insights. The research concluded that ethical leadership is partially effective in shaping organizational commitment. The results specifically determined that ethical leadership behavior positively affects the continuance and normative dimensions of organizational commitment, while it has no discernible effect on the emotional dimension. Based on the results, it can be concluded that the reasons hospitality employees in this study remain with their organization are based on their belief that it is the morally right thing to do (normative) and their perception of commitment as a duty. However, unethical behavior by leaders would likely cause employees to lose this commitment. To enhance employees' sense of belonging, leaders must establish effective communication and build a strong corporate culture.