How inclusive leadership improves employee service behavior: does inclusive climate matter?

Purpose The study examines the relationship between inclusive leadership (IL) and employee service behavior (ESB) with the mediating effect of inclusive climate (IC) based on bank employees’ perceptions. Design/methodology/approach Using judgmental sampling, the study gathered data from 565 front-line employees working in the banking industry in Bangladesh. Structural equation modeling employing AMOS, was performed to assess the hypothesized relationships. Findings The results reveal that IL positively influences ESB (in-role and extra-role service behavior) and IC. IC has a substantial positive relationship with ESB. IC is also found to have a significant mediating impact between IL and ESB. Practical implications The study recommends that bank managers and leaders should emphasize IL to create an atmosphere of inclusiveness, thereby improving employees’ inclination to improve their service behavior toward customers. Originality/value The study would provide a unique insight into IL and its effect on FLEs’ service behavior in the banking industry context. The study also extends signifying IC as the intervening mechanism between IL, in-role and extra-role service behavior.