How Ethical Leadership Cultivates Innovative Work Behaviors in Employees? Psychological Safety, Work Engagement and Openness to Experience

Abstract

In this study, social exchange theory and social learning theory are integrated to explain how and when ethical leaders promote innovative work behaviors among employees. Specifically, this research developed a moderated mediation model to examine the mediating effect of psychological safety and work engagement and the moderating effect of openness to experience. The survey data were collected from 397 full-time employees of various service industry companies operating in China in two stages with a two-week gap. SPSS and AMOS were used to assess the study hypotheses. First, SPSS 22.0 was used to test the reliability of variables and conduct descriptive statistics, correlation, and regression analysis, and AMOS 22.0 was used to conduct confirmatory factor analysis. Second, Version 22 of SPSS and the PROCESS macro were used to analyze mediation, moderation, and conditional process effects. The results indicated that ethical leadership was positively related to employees’ innovative work behavior. Ethical leadership significantly positively affects employees’ innovative work behaviors by mediating psychological safety and work engagement. Moreover, the results showed that openness to experience plays a moderating effect in the positive relationship between work engagement and employees’ innovative work behavior. Finally, openness to experience moderates the indirect relationship (via work engagement) between ethical leadership and employees’ innovative work behavior. This research contributes to the existing literature on ethical leadership and provides a reference for companies to stimulate employees’ innovative work behavior.