The Impact of Organisational Transparency and Ethical Leadership on Organisational Commitment: The Mediating Role of Organisational Trust Among Employees in the Malaysian Service Sector

Fu, Zhan Xin (2026) The Impact of Organisational Transparency and Ethical Leadership on Organisational Commitment: The Mediating Role of Organisational Trust Among Employees in the Malaysian Service Sector. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

In the context of increasing workforce challenges and evolving corporate governance expectations, fostering organisational commitment has become a critical priority for organisations, particularly within the Malaysian service sector. This study examines the effects of ethical leadership and organisational transparency on organisational commitment, with organisational trust serving as a mediating variable. Grounded in Signalling Theory and Social Exchange Theory (“SET”), the study examines how ethical conduct and transparent communication function as governance-related signals that influence employees’ perceptions and behaviours. A quantitative, cross-sectional research design was adopted, with primary data collected through a structured online questionnaire distributed to employees in the Malaysian service sector. A total of 252 valid responses were analysed using the Statistical Package for the Social Sciences (“SPSS”) Version 31.0. The findings indicate that both ethical leadership and organisational transparency have significant positive effects on organisational commitment. In addition, organisational trust was found to play a significant mediating role, highlighting its importance as a psychological mechanism linking governance practices to employee attitudes. This study contributes to the existing literature by providing an integrated framework that explains how governance-related practices influence employee commitment through trust within the Malaysian context. The findings also offer practical implications, suggesting that organisations should prioritise ethical leadership and transparent communication to strengthen trust and enhance long-term employee commitment.