The Role of Competitive and Ethical Psychological Climate in Retail and Sales Organizations

Abstract

The present study examined antecedents and consequences of both competitive and ethical psychological climates. Utilizing sense-making theory, we examined trait competitiveness as an antecedent of competitive psychological climate and moral disengagement as an antecedent of ethical psychological climate. Theorizing both competitive and low ethical climates as potential demands on employees, we examined their relationships with emotional exhaustion and turnover intentions. Drawing again on sense-making theory, we further examined competitive climate as a mediator between trait competitiveness with emotional exhaustion and turnover intentions and ethical climate as a mediator between moral disengagement with emotional exhaustion and turnover intentions. Data was collected from four retail and sales organizations within New Zealand. Based on a small sample of 38 employees, we did not find support for trait competitiveness or moral disengagement as predictors of competitive or ethical climate. Competitive climate was significantly and positively related to emotional exhaustion, but not turnover intentions. Ethical climate was significantly and negatively related to both emotional exhaustion and turnover intentions. In terms of mediation analyses, ethical climate acted as a mediator between moral disengagement with emotional exhaustion and turnover intentions, although competitive climate did not mediate the relationships of trait competitiveness with emotional exhaustion or turnover intentions. Implications are discussed in light of these results, along with suggestions for future research.