Ethical leadership and individual ambidexterity: the mediating role of equity sensitivity and the moderating role of openness to experience

Abstract

Purpose The aim of this study is to determine the effect of ethical leadership (EL) on individual ambidexterity (IA). Equity sensitivity (ES) was proposed as an underlying mechanism between EL and ambidexterity. Openness to experience (OTE) was hypothesized to strengthen the effect of EL on IA. Design/methodology/approach Data were collected, using a cross-sectional survey design, from employees working in Software Houses in Pakistan using multistage sampling. A usable sample of 255 was subjected to analysis in a two-step structural equation modelling. Findings The empirical findings revealed that EL has a positive effect on IA. ES partially mediated between EL and IA. OTE strengthens the impact of EL on IA. Practical implications This study carries some implications for practitioners, and in particular it provides a clear direction to the management who exhibits EL characteristics. Ethical leaders encourage their followers to explore new things, to behave more innovatively at work and to take the risk in implementing and introducing new ideas. Social implications This study highlights that EL should establish a positive work environment in which employees have a comfortable feeling when applying their explorative and exploitative activities to their work. Originality/value This study investigates critical linkages between EL and IA. Given the importance of IA, results provide novel guidance regarding EL style and the significance of equity in workplace. Recruitment decisions will also be guided by choosing those who have an open personality orientation in the workplace.