Ethical leadership and SME performance in Malaysia’s ICT sector - a resource-based view of leadership effectiveness as a mediator
Bibliographic record
Abstract
Purpose This study investigates the impact of ethical leadership on organizational performance among Malaysian ICT SMEs, focusing on the mediating role of leadership effectiveness. It explores how leadership behaviors, typically defined in Western contexts, function within a non-Western, emerging economy setting. Design/methodology/approach The study incorporates a thorough literature review to conceptualize ethical leadership as a one-dimensional construct and positions leadership effectiveness as an emerging paradigm. Organizational performance is evaluated based on growth and profitability metrics. Data were collected from 675 SMEs in the ICT sector, and the proposed model was rigorously tested using exploratory factor analysis, confirmatory factor analysis, and structural equation modeling. Findings Results indicate a positive relationship between ethical leadership and organizational performance, and similarly between leadership effectiveness and organizational performance. Moreover, leadership effectiveness was found to mediate the link between ethical leadership and organizational performance. Practical implications The findings highlight the value of ethical leadership coupled with a focus on leadership effectiveness as strategies for enhancing organizational performance. These insights offer actionable guidance for SMEs aiming to improve performance and contribute to broader economic growth. Originality/value This study contributes to SME literature by integrating the RBV with leadership research and demonstrating how ethical leadership, as an intangible resource, drives performance in emerging markets. The use of a Western-developed measurement tool, adapted to a Southeast Asian context, adds methodological novelty and cross-cultural insight. This study contributes a novel leadership-performance model for SMEs in emerging economies, advancing both ethical leadership theory and practical leadership development in ICT service sectors.
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How this classification was reachedexpand
Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.001 | 0.000 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.001 | 0.000 |
| Bibliometrics | 0.000 | 0.001 |
| Science and technology studies | 0.000 | 0.001 |
| Scholarly communication | 0.000 | 0.000 |
| Open science | 0.000 | 0.000 |
| Research integrity | 0.000 | 0.001 |
| Insufficient payload (model declined to judge) | 0.000 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one teacher head, not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".