Leadership Favouritism and Organisational Silence: Examining the Mediating and Moderating Mechanisms Influencing Whistleblowing Intentions

Leong, Casey Kheng Loong (2025) Leadership Favouritism and Organisational Silence: Examining the Mediating and Moderating Mechanisms Influencing Whistleblowing Intentions. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

Whistleblowing has gained global recognition as a key mechanism for deterring corruption, promoting ethical conduct, and strengthening accountability within organisations. In Malaysia, despite the existence of legal protections and growing attention to corporate governance, employees often remain hesitant to report misconduct due to perceived risks and lack of institutional support. While much of the existing research focuses on formal structures and legal barriers, limited attention has been given to the interpersonal and behavioural dynamics that affect whistleblowing intention, particularly leadership favouritism. This study addresses that gap by investigating the impact of leadership favouritism on employees’ intention to blow the whistle and examining the psychological and contextual mechanisms that either inhibit or facilitate this ethical behaviour. Drawing on Social Identity Theory, Social Exchange Theory, and Organisational Justice Theory, the study examines how favouritism affects whistleblowing intention through three mediators: fear of retaliation, employee empowerment, and perceived organisational support. The study also considers the moderating roles of trust in leadership and legal awareness in shaping these relationships. Employing a quantitative, cross-sectional approach, data were gathered from 392 general employees across diverse Malaysian organisations through self-administered online questionnaires, using judgemental and snowball sampling methods. Data analysis was conducted using SPSS and SmartPLS. The findings revealed that leadership favouritism significantly reduces whistleblowing intention by increasing fear of retaliation and lowering both employee empowerment and perceived organisational support. However, trust in leadership and legal awareness were found to moderate these effects. Specifically, higher levels of trust in leadership mitigated the negative impact of favouritism on empowerment, while legal awareness weakened the influence of fear on whistleblowing intention. These results highlight the importance of both interpersonal trust and institutional knowledge in fostering a supportive environment for whistleblowers. The study contributes theoretically by introducing leadership favouritism as a key antecedent and integrating three behavioural theories into a unified framework. Practically, it offers insights for organisations to improve leadership fairness, strengthen internal support systems, and raise awareness of legal protections. It also reinforces Malaysia’s commitment to Sustainable Development Goal 16 by positioning whistleblowing as a tool for ethical governance. The study concludes by acknowledging its limitations and suggesting future research to explore whistleblowing across varied sectors, cultures, and psychological dimensions. Keywords: Whistleblowing Intention; Leadership Favouritism; Fear of Retaliation, Employee Empowerment, and Perceived Organisational Support; Trust in Leadership; Legal Awareness