Cross-cultural examination of effects of ethical leadership of independent hotels based on Social Exchange Theory

Abstract

Independent hotels are in a competitive marketplace for staff in which they face a high rate of employee turnover resulting in poor performance and low profit. This study examines the impact of ethical leadership on turnover intention through ethical climate, employee voice, employee empowerment and affective commitment using a cross-cultural approach in two contrasting GLOBE surveyed countries, Iran and the United Kingdom, based on Social Exchange Theory. A sample of 807 personnel of independent hotels in the two countries were surveyed. Findings show that ethical leadership can reduce turnover intention by different mechanisms through the cultural features and leadership dimensions of the two countries.