The effects of organizational justice, ethical leadership on employee performance in Binh Duong's industrial parks - A mediation analysis of job satisfaction and employee work motivation

Abstract

This study empirically examines the effects of organizational justice and ethical leadership on employee performance in Binh Duong’s industrial park with a mediation analysis of employee job satisfaction and employee work motivation. The study employed the use of correlation analysis and multiple regression analysis to establish the nature of the relationships between those variables. Employees in Binh Duong’s industrial park who are working in five main industries such as the priority industry includes textile industry; leather and footwear industry; chemical industry; and two key important industries are electronics, telecommunications and information technology industry; and mechanical industry were taken as a sample of this study. Questionnaire is a mixture questionnaire, which was designed based on the exist questionnaire within organizational justice, ethical leadership, employee job satisfaction, employee work motivation and employee job performance. Data was collected from 677 respondents from five mains industries in Binh Duong’s industrial parks. The validity of the measurement scale was tested by Cronbach’s Alpha indicator. Several statistical tools were used in order to analyze the data such as descriptive analysis, Pearson correlation analysis and regression analysis. The research results revealed the existence significant relationships between employee job performance and organizational justice, ethical leadership, employee job satisfaction, employee work motivation. Organizational justice is the most important factor that has direct effect on employee job performance. The results also illustrated that higher level of ethical leadership in company, higher level of employee job performance. Employee job satisfaction and employee work motivation play significantly role in contributing the employee job performance. Based on conclusion made, researcher gives recommendations to managers for increase their employees’ performance by increase the perception of fairness in their company.