The effect of ethical leadership and leadership effectiveness on employee’s turnover intention in SMEs : the mediating role of work engagement

Abstract

Purpose: The purpose of the present study is to examine the impact of ethical leadership and leadership effectiveness on employee’s turnover intention in SMEs, with an emphasis on the mediating role of work engagement. Design/Methodology/Approach: A quantitative approach was used. In particular, a research model has been empirically tested, using primary data collected from SMEs employees in two different countries. Findings: Ethical leadership and leadership effectiveness play an important role in predicting turnover intention. Moreover, work engagement mediates the relationship between ethical leadership, leadership effectiveness and turnover intention. Practical Implications: Α leadership approach which is both ethical and effective at the same time is more likely to create a productive, ethical and trusting work climate, conducive to the work engagement of employees and, therefore, reduce turnover. Originality/value: The role of ethical leadership and leadership effectiveness as well as work engagement on employee turnover in SMEs is currently under-researched.