THE ROLE OF ETHICAL ORGANISATIONAL CLIMATE IN ENHANCING INTERNATIONAL EXECUTIVES’ INDIVIDUAL AND TEAM CREATIVITY

Abstract

This research aims to investigate how creativity at individual and team levels relates to ethical organisational climate (EOC). A mediated and moderated model is proposed to explain the role of EOC in enhancing individual and team creativity of international business executives. Applying moderating-mediating model design, based on feedback from 302 employees, our research reveals and confirms that creativity and ethics can co-exist. A positive relationship is found between EOC and individual creativity, while EOC is linked to team creativity through individual creativity. Further, we found that business size moderates the relationship between EOC and creativity at individual and team levels. This study contributes to the literature by offering empirical evidence on how EOC can be a catalyst to creativity. Managerial and theoretical implications of our findings are also discussed.