Monday, October 1, 2012

How Do Chinese Firms Deal with Inter-Organizational Conflict?----The Relationship Between Ethical Leadership and Inter-Organizational Conflict


Quantitative Article

Nowadays companies are spending a lot of efforts and money to demonstrate themselves as ethical and socially responsible organizations in the eyes of their customers and suppliers. After the bankruptcy of Enron, Lehman Brothers and failure of other organizations, people have started emphasizing the concept of ethical leadership. Ethical leadership enables the employees to engage in good practices which overall result in welfare of everyone in the society. Management's tone has a trickle-down effect on employees. If top managers encourage ethics and integrity so will employees. "But if upper management not cares about ethics and focuses solely on the bottom line, employees will be more prone to commit fraud and feel that ethical conduct isn't a priority".

Due to the importance of ethical leadership, the ethical approach adopted by the leaders has aroused attention in inter-organizational leadership research. Existing ethical leadership literature is exclusively based on the western culture context. The ideas may not suitable to other societal contexts, especially in Chinese business culture. Thus, this article proposes that the ethical leadership concept is especially crucial in the Chinese business culture. Even through this issue has been discussed by other authors; there is little published empirical evidence to evaluate these perceptions. So the authors wrote this article to respond this need.

The type of this research is hypothesis testing. The authors suggested two hypothesizes. The first one is "higher ethical leadership is associated with lower inter-organizational conflict, whether task or relationship". Another is task interdependence moderates the relationship of ethical leadership and inter-organizational. The research collected the data from external suppliers of large listed group company in China and then test the data collected. The results show that the more ethics related efforts the leader demonstrates, the better the understanding and relationship with the other partner could be created, and consequently the less conflict will exist in the inter-organizational cooperating process.

The first of good ethical leadership can improve competitiveness in inter-organizational collaboration. Leaders can effectively facilitate collaboration with external buyers or suppliers, because external stakeholders will adjust their behavior and decision-making in according with the common ethical values and images set by leaders. Another implication is that firms should pay more attention to ethical leadership in interacting with interdependent partners.

Resource:


2.     “Why Is Ethical Leadership So Important?” 


3.     “Tone at the top”:


4.     Ethical leadership”

1 comment:

  1. I think the article is quite interesting, especially with the growing concerns of China’s influence with the global economic crisis. Ethical leadership is extremely important and can definitely improve competitiveness in inter-organizational collaboration. And if you look around you can definitely find that most company leaders are nice-decent people, practice good principles and always have good intentions especially for their company. But sometimes it is very important to closely inspect what it really means to lead with ethics.

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