Effects of Leader-Member Exchange, Organizational Identification and Leadership Communication on Unethical Pro-Organizational Behavior: A Study on Bank Employees in Turkey

Abstract

Unethical behavior of employees threatens business development and sustainability by damaging the image and reputation of companies. Unethical pro-organizational behavior (UPB) must also be considered in this context, and its antecedents should be analyzed. This study aims to advance what is known about how leader-member exchange (LMX) and organizational identification affect employees’ intentions to perform UPB, by incorporating the effect of leadership communication. Within this context, the mediating role of organizational identification and the moderating role of leader’s message framing (gain or loss) are examined. The research sample consists of 306 employees working for state and private banks operating in Turkey. Participants were divided into two groups and message framing was manipulated with a hypothetical story using vignettes. Research hypotheses were tested by structural equation modeling (SEM) and multi-group analysis. Results confirmed positive effects of LMX and organizational identification on UPB. Organizational identification also mediated the effect of LMX on UPB. Moreover, leader’s communication style moderated the effects of LMX and organizational identification on UPB. When leaders used loss framing instead of gain framing, the effect of LMX on UPB was augmented whilst the effect of organizational identification diminished. Our study contributes to the literature by documenting how a leader’s communication style can trigger a shift towards UPB among highly identified employees. Research and managerial implications of the findings are discussed.