More ethical, more innovative? The effects of ethical culture and ethical leadership on realized innovation

Zeger van der Wal · Mehmet Akif Demircioğlu

36 citations0/0 files storedAustralian Journal of Public Administration

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Public Policy and Administration Research Ethics in Business and Education Employee Performance and Leadership

Abstract

Abstract Are ethical public organisations more likely to realize innovation? The public administration literature is ambiguous about this relationship, with evidence being largely anecdotal and focused mainly on the ethical implications of business‐like behaviour and positive deviance, rather than how ethical behaviour and culture may contribute to innovation. In this paper we examine the effects of ethical culture and ethical leadership on reported realized innovation, using 2017 survey data from the Australia Public Service Commission (n = 80,316). Our findings show that both ethical culture at the working group‐level and agency‐level as well as ethical leadership have significant positive associations with realized innovation in working groups. The findings are robust across agency, work location, job level, tenure, education, and gender and across different samples. We conclude our paper with theoretical and practical implications of our research findings.

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2003Common method biases in behavioral research: A critical review of the literature and recommended remedies.1993Organizational culture and leadership 2005Ethical leadership: A social learning perspective for construct development and testing 1997Organizational Learning II: Theory, Method, and Practice.1988The Organizational Bases of Ethical Work Climates 2003The role of transformational leadership in enhancing organizational innovation: Hypotheses and some preliminary findings 2010Innovative Behavior in the Workplace: The Role of Performance and Image Outcome Expectations 2008Transformational leadership, creativity, and organizational innovation

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