The Impact of Prosocial Motivation and Institutional Isomorphism on Employees’ Inclusive Behaviour in Malaysian Companies: The Mediating Role of Ethical Climate

Seow, Yu Fan (2026) The Impact of Prosocial Motivation and Institutional Isomorphism on Employees’ Inclusive Behaviour in Malaysian Companies: The Mediating Role of Ethical Climate. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

In the highly multicultural contemporary Malaysian corporate landscape, organisations increasingly face a critical disconnect between formal structural diversity policies and actual inclusive workplace practices. This study addresses this persistent diversity implementation gap by investigating the impact of prosocial motivation and institutional isomorphism on employees' inclusive behaviour, specifically focusing on the mediating role of the organisational ethical climate. Employing a quantitative, cross-sectional research design, primary data was collected through a structured online survey administered to a final sample of 281 employees working across various registered Malaysian companies. The empirical data was rigorously analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) via SmartPLS 4.0, following comprehensive preliminary descriptive, reliability, and validity measurement evaluations in SPSS. The findings strongly support all seven proposed hypotheses. The results demonstrate that both the internal, micro-level drive of prosocial motivation—reflecting an intrinsic desire to benefit others—and the external, macro-level normative and coercive pressures of institutional isomorphism significantly and positively influence inclusive behaviour. Crucially, the analysis confirms that an organisation's ethical climate serves as a complementary partial mediator for both relationships, successfully channelling these distinct internal and external drivers into tangible actions. Ultimately, this research provides vital theoretical and practical insights for corporate governance, suggesting that authentic workplace inclusivity operates as a dual-engine phenomenon.