The Dark Side of Empowering Leadership: How Empowering Leadership Affects Unethical Pro-Organizational Behavior in Construction Projects

Abstract

The success of construction projects heavily depends on the compliance of parties with ethical codes of conduct. Unethical pro-organizational behavior (UPB) may serve as a barrier to close collaboration between parties. Although empowering leadership is generally considered to be beneficial to project management, this study argues that empowering leadership may unintentionally increase the tendency of employees to adopt UPB. The aim of this study is to uncover the influencing mechanism underlying empowering leadership and UPB by introducing the mediating role of role stress. It is hypothesized that empowering leadership can enhance employees’ role stress, thereby increasing the engagement of UPB. Moreover, organizational goal clarity can ease the negative effect of empowering leadership. With data collected from experienced construction professionals, the results of the covariance-based structural equation modeling (CB-SEM) supported the hypothesis. The findings help in understanding why employees may adopt unethical behaviors when they feel high levels of role stress that are caused by empowerment. Theoretically, the study enriches the literature on empowering leadership and UPB in the construction context. In practice, managers are reminded about the adverse effect of empowering leadership on employees’ unethical behaviors. Organizational management tools are suggested to assist in assigning work appropriate to employees’ roles. Regular checks and feedback about organizational goals are also necessary to confirm compliant behaviors and progress.