How ethical leadership influences creativity and organizational innovation

Imran Shafique · Bashir Ahmad · Masood Nawaz Kalyar

159 citations0/0 files storedEuropean Journal of Innovation Management

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Employee Performance and Leadership Job Satisfaction and Organizational Behavior Ethics in Business and Education

Abstract

Purpose The purpose of this paper is to answer two questions. What is the impact of ethical leadership on followers’ creativity and organizational innovation? What are the mechanisms through which ethical leadership influences creativity and organizational innovation? Design/methodology/approach Considering a market-oriented criterion to measure organizational innovation, the data were collected from 322 small-sized information technology firms working in Pakistan. Multilevel modeling and hierarchical regression analyses were used to explore the direct and indirect effects of ethical leadership on creativity and innovation, respectively. Findings The results show that ethical leadership is an important predictor of both individual and organizational creativity. For the individual level, the results of multilevel modeling indicate that there is a positive link between ethical leadership and employee creativity. Furthermore, ethical leadership affects employee creativity through knowledge sharing and psychological empowerment. At the organizational level, the results reveal that ethical leadership is positively associated with organizational innovation directly. Practical implications The findings imply that ethical leadership is an important tool to promote creativity and for the advancement of innovation for developing countries as well as for newly developed industries. Originality/value This study is first to highlight the role of ethical leadership for organizational innovation. The main contribution of the study is to explore creativity as potential mediator for ethical leadership–organizational innovation nexus; where a market-oriented criterion is taken as proxy of organizational innovation.

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References

2000Intrinsic and Extrinsic Motivations: Classic Definitions and New Directions 1960The Norm of Reciprocity: A Preliminary Statement 1984Upper Echelons: The Organization as a Reflection of Its Top Managers 1995PSYCHOLOGICAL, EMPOWERMENT IN THE WORKPLACE: DIMENSIONS, MEASUREMENT AND VALIDATION.1991ORGANIZATIONAL INNOVATION: A META-ANALYSIS OF EFFECTS OF DETERMINANTS AND MODERATORS.1994DETERMINANTS OF INNOVATIVE BEHAVIOR: A PATH MODEL OF INDIVIDUAL INNOVATION IN THE WORKPLACE.1996ASSESSING THE WORK ENVIRONMENT FOR CREATIVITY.2005Ethical leadership: A social learning perspective for construct development and testing

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