Purpose Guided by the importance ascribed to the self-cultivation of virtue, the authors examined virtues-centered moral identity (VCMI) as a mediator of the positive relationship between virtuous leadership and several valued personal and organizational outcomes. Design/methodology/approach Hypotheses were tested using data from 131 leader–subordinate dyads based in the USA and Canada, using the SPSS Statistics Software 27.0 PROCESS Macro v 3.5. Findings Leaders’ VCMI mediates the positive effects of virtuous leadership (subordinate-rated) on leaders’ moral behavior (subordinate-rated) and their self-rated happiness. Followers’ VCMI mediates the positive effects of virtuous leadership on organizational citizenship (as judged by leaders) and self-rated happiness of followers. Followers’ VCMI did not mediate between virtuous leadership and followers’ moral behavior. Research limitations/implications Although participants of this study were from a variety of industries, the sample was based in the USA and Canada; hence, any culture-specific leader behaviors and processes were likely missed. Moreover, some of the relationships examined involved data from the same source such that these associations may have been artificially inflated by common method variance. Even so, in each case, the sources we used (leader and follower) were appropriate to the research question. Nonetheless, for example, to collect Virtuous Leadership Questionnaire (VLQ)-based assessments from other stakeholders (e.g. peers and customers) remains of interest. Practical implications A practiced strong sense of VCMI has the potential to short-circuit unethical behavior and contribute to happiness among both subordinates and leaders. VCMI is implicated in the fostering of subordinates’ organizational citizenship as well. Social implications The authors' findings imply that leaders and followers can acquire knowledge structures associated with moral virtues and virtuous acts through formal and informal learning, suggesting an affirmative answer to the question, “Are virtuous acts teachable? This is an important starting point in developing theoretically sound programs for promoting virtuous acts as called for by many scholars and practitioners. The authors' study highlights the importance of virtues-related education because VCMI is likely developed through formal learning. Originality/value The authors' VCMI mediation-based findings offer a completely new explanation for the positive functioning of virtuous leadership, which formerly had been grounded in attribution and social learning processes only.
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