Design and Testing of a Culturally-Excellence-Based Ethical Leadership Model in the Petrochemical Industry Using Structural Equation Modeling
Keywords:
Ethical Leadership, Cultural Excellence, Petrochemical Industry, Grounded TheoryAbstract
This study aims to design and test a culturally-excellence-based ethical leadership model in the Iranian petrochemical industry using a mixed-methods approach and structural equation modeling. The research adopted a sequential exploratory mixed-methods design. In the qualitative phase, grounded theory was employed to identify the dimensions of ethical leadership through semi-structured interviews with 19 experts, managers, and academics in the petrochemical sector. The data were analyzed using open, axial, and selective coding. In the quantitative phase, a researcher-developed questionnaire was distributed to a randomly selected sample of 385 employees from the Persian Gulf Petrochemical Industries Company. The data were analyzed using SPSS and SmartPLS software, with structural equation modeling (PLS-SEM) used to assess the relationships between variables. Reliability and validity were confirmed through Cronbach’s alpha, composite reliability, AVE, and HTMT. The Kolmogorov–Smirnov test results confirmed non-normal data distribution, justifying the use of PLS-SEM. All hypothesized relationships in the structural model were statistically significant (p < 0.01). Causal conditions had a positive effect on the ethical leadership phenomenon (β = 0.497, t = 11.671), and also influenced contextual (β = 0.350) and intervening conditions (β = 0.541). Contextual conditions strongly predicted both the ethical leadership phenomenon (β = 0.613) and outcomes (β = 0.560). Intervening conditions significantly affected the ethical leadership construct (β = 0.656), strategies (β = 0.603), and outcomes (β = 0.650). The leadership phenomenon itself significantly influenced strategic actions (β = 0.644), which in turn had the strongest effect on outcomes (β = 0.859). R² values indicated high explanatory power across all endogenous constructs. The results confirm the validity and applicability of the proposed model, highlighting the role of ethical leadership as both a cultural imperative and a strategic mechanism for achieving organizational effectiveness in the petrochemical industry.
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Copyright (c) 2025 Hedayatollah Derakhshandeh, Mohammad Reza Karimi Kundazi, Abdolrahim Rahimi (Author)
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