UEH UNIVERSITY BUSINESS SCHOOL FACULTY OF MANAGEMENT UEH UNIVERSITY Research Project Subject: BUSINESS RESEARCH METHODS Research Topic: Effect of Responsible Leadership RL on Organisat
CHAPTER 2: LITERATURE REVIEW 2.1 IntroductionChapter 2 aims to introduce the theoretical basis for the research paper The research model is built along with hypotheses about the relationship between the concepts the model This chapter consists of three main parts: (1) responsible leadership overview, (2) literature review and (3) research hypothesis and proposed research model
2.2 Overview of responsible leadership The challenge of being a responsible leader in a globalizing economy is becoming increasingly challenging, complex, and unclear due to the everyday business's rising dynamic and complexity, a wide range of lifestyles and opinions about what is good or wrong, as well as various legal laws As a result of the aforementioned, corporate executives are under increasing pressure to act responsibly toward not only their shareholders but also toward society and the environment Business leaders frequently encounter an initial and crucial challenge: how to define what responsible leadership actually is, given the broad-reaching but somewhat fuzzy nature of responsibility and responsible leadership The phrase can appear ambiguous and have different meanings to different mdividuals, which is an issue Without a precise definition of what constitutes responsible behavior to serve as your guidance, how can you become a responsible leader? Theoretical ideas and questions posed to managers who are dealing with these 21st-century difficulties revealed recurrmg patterns When asked about the function of responsible leadership in business organizations, managers frequently agree on a number of key pomts These features also represent what academics are increasingly coming to understand responsible leadership to be in the modem, globally connected business world In a very basic sense, responsible leadership can be defined as the management of a corporation’s interactions with society aimed at addressing the corporation’s various stakeholder concerns and contributing to the multiple bottom lines of economic, social, and environmental performance The leader is thereby the one who enables and moderates interactions with the various stakeholders of the company
2.3 Foundational theories related to responsible leadership 2.3.1 Social learning theory
Using social information processing theory, this study examined the effects of responsible leadership in connection with organisational citizenship behaviour for the environment in the research paper of David A Waldman and Rachel M Balven (2021) And this study investigates the effect of responsible leadership on employee career success via work engagement in the research paper of Minyan Li, Feng Yang and Muhammad Waheed Akhtar (2022) In Xiaotong Yang’s study (2019), based on the integrated perspectives of social learning theory and affect event theory, the paper discusses the impact mechanism of responsible leadership on employee green behaviour Drawing on social identity theory and social exchange theory in the research of
Dong, W and Zhong, L (2021), this study aims to mvestigate the psychological mechanisms underlying the responsible leadership-innovative behaviour relationship
Guided by social learning theory and social identity theory, we propose a model of salespeople’s creativity driven by responsible leadership and corporate social responsibility (CSR) m the paper of Castro-Gonzalez, 8 Bande, B and Fernandez-Ferrin, P (2019) Drawing on social learning theory, the purpose of this paper is to explore the mediational effect of affective commitment on the relationship between responsible leadership and intention to quit 1m the research of Haque, A., Fernando, M and Caputi, P (2019) And many researchers also used this theory like in the research of Yuxin Yang (2022), in the paper of Allali, Z and Allali, F (2021)
2.3.2 Stakeholder theory The stakeholder theory elaborates responsible leadership, corporate social responsibility (CSR), and leadership ethics in the research paper of David A Waldman and Rachel M Balven (2021) Responsible leadership is an emerging leadership style which was born out of the stakeholder theory and defines followers as stakeholders inside and outside the organisation in the study of Cheng, K., Wei, F and Lin, Y in 2019 In the research of Lin, C.-P., Huang, H.-T and Huang, T.Y (2020), Responsible leadership (RL) is a new leadership style that arose from stakeholder theory, that identifies followers as stakeholders both mside and outside of the company This
13 theory was used in many studies like Javed, M et al (2019), Allali, Z and Allah, F
2.3.3 Leadership theories In the research of Parker, E.T and Pascarella, E.T (2013), the social change model reinforces the relational aspect of leadership, as it applies to college students (HERI, 1996), and this is the theory that guides the present study
In the paper of Allali, Z and Allali, F (2021), according to Pless & Maak (2005), the ulttmate goal of responsible leadership is to offer an improved perspective on Corporate Social Responsibility CSR management because the interpersonal and social perspectives of leadership theory and basic concepts and frameworks of stakeholder theory are the basis of responsible leadership
2.3.4 The corporate social responsibility theory and social identity theory In Yasin's research in 2021, this study attempts to examine the mediating role of ethical atmosphere and business image by utilising the corporate social responsibility theory and social identity theory In the research of Dong, W and Zhong, L (2021), drawing on social identity theory and social exchange theory, this study aims to investigate the psychological mechanisms underlying the responsible leadership-innovative behaviour relationship
Using social identity theory this article examined the mediating effect of CSR practices in the relationship between RL and affective organisational commitment (AOC) in Pifieros Espinosa’s paper in 2022
Guided by social learning theory and social identity theory, we propose a model of salespeople’s creativity driven by responsible leadership and corporate social responsibility (CSR) in the paper of Castro-Gonzalez, §., Bande, B and Fernandez-Ferrin, P (2019) The corporate social responsibility theory and social identity theory also was applied in many publications
2.4 Synthesis of studies related to factors affecting the responsible leadership After researching and selecting from more than 30 journals, the research team decided to filter out 25 studies, including qualitative and quantitative, related to the Responsible leadership as shown in the Table I below The description includes: (1) Article number, (2) Year of publication, (3) Title of article, (4) Author's name, (5) Title
Stone-Johnson, of the journal published, (6) Independent variables, (7) Moderating variables, (8) Dependent variables, (9) Type of research paper and (10) Summary results
With the content (10) Summary results, the research team presented the data of variables that are positively or negatively correlated (denoted "+" and "-") Whether the hypothesis favours or not, this is tested through p-values or critical values If this index is lower than 0.05, the hypothesis will have statistical significance; if greater than 0.05,it will be rejected If the critical value (Critical Ratio - CR) is greater than 1.96, the test 1s statistically significant at the 5% significance level
Table 2.1: Summary of related studies
Research Question 1: What characteristics make organisations of different types ful and ble, far
This article presents an early understanding of what responsible educational
Corrie leadership looks like in
“Responsible practice The findings from this than 10 in Research Question 2: How does
Leadership.” Qualitative Servant, oo work suggest that the strength
Corrie smaller sustainability of performance
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50, no 4, change More research is largest ones other sectors?
2013, pp Ineeded to understand better
645-674 how schools and systems that the implications for schools and lack such webs can develop school leaders (Hargreaves & them
The articles in the current al (2021) responsible a symposium provide ideas for
lhow to move forward with responsible processes theory and leadership for and research in the area of organizational outcomes,
When is it most appropriate to responsible leadership In this citizenship (2)
David A Responsible |share leadership? symposium we see a range of behavior for leadership stakeholder
Waldman Lou leadership |How can an organisation perspectives, the and secondary priorities,
and 2015 ơ research and |implement such a model? including both micro and macro environment in stakeholde data (3) training
Rachel M implementati |How can an organisation shift [approaches to the phenomenon light of r theories and
Balven on between hierarchical and shared |As we have pointed out, psychological development leadership to best ensure RL? one of the issues that gets at the ownership and › heart of RL processes is the employee (4)
ơ divergence of environmental globalisation economic/strategic commitment: and versus more stakeholder-based
A moderated macro-level views of RL mediation forces, and
Available at: measuremen https: //doi.org/ tand
(2020) “The impact of responsible leadership ơ 250 H1: Accept
employees H1: Sustainable Leadership According to the results, the responsible analysis and future (RL) fully Mediating the regression coefficient of employee (re): using leaders’ relationship between Responsible Employees was
positions Responsible Leadership and slightly and significantly role of e regression
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” International theory and and relationship between (.257) to (.426) and R Square
companies Responsible Leadership and from (.062) to (.174) when
Business and equation located in Responsible Employees Sustainable Leadership was
Egypt entered in the regression model
Available at: https://doi.org/
Yang, X H1: Responsible leadership can responsible leaders have a
(2019) “The positively influence the green significant positive impact on ơ impact of behaviour of employees H2:
employee green behaviour responsible Employee's moral reflectiveness
(model 2, B = 0.51, p