Ethical leadership and sustainability of agro-allied firms: moderating role of environmental dynamism

• Published in: Humanomics 2023-01, Vol.39 (1), p.36-53
• Main Authors: Ogaga, Ida Austin, Ezenwakwelu, Charity A., Isichei, Ejikeme Emmanuel, Olabosinde, Taiwo Samuel
• Format: Article
• Language: English
• Subjects: Agricultural production; Decision making; Economic development; Economic growth; Ethics; GDP; Gross Domestic Product; Leadership; Sustainability; Unemployment
• ISSN: 2514-9369; 2514-9369; 2514-9377
• DOI: 10.1108/IJOES-12-2021-0226

Purpose>This paper aims to account for the direct effect of ethical leadership on the sustainability of agro-allied firms and the moderating effect of environmental dynamism on ethical leadership–organisational sustainability relation.Design/methodology/approach>A total of 215 managers participated in the survey, which covered agro-allied firms from the 6 geo-political zones of the country, Nigeria. Partial least square structural equation model was conducted with the aid of SmartPLSv3.Findings>The result confirms that ethical leadership positively affects the sustainability of firms in the agro-allied sector and also supports that environmental dynamism strengthens the relation between ethical leadership and sustainability of firms.Originality/value>The study advances ethical leadership literature through a nuanced examination of its relevance in the agricultural sector, while also validating the integrative social contract theory as a theoretical lens used in exploring the relationship. The specific focus on “ethical” leadership and a specific sector of the economy – agro allied firms is a new ground by not just looking at leadership but the ethical consideration part in relation to a specific industry where competition is a key driver to management/leadership performance.