Too sleepy to be innovative? Ethical leadership and employee service innovation behavior: A dual-path model moderated by sleep quality

Abstract

This research explores the association of ethical leadership with employee service innovation behavior through a moderated mediation model. Theorizing on uncertainty reduction theory, we explore psychological ownership and creative self-efficacy as the underlying psychological mechanisms in the association between ethical leadership and employee service innovation behavior while considering the moderating role of sleep quality. We tested our theoretical model in two studies involving hospitality sector employees in the United States. Study 1 employed a three-wave (two-week period) time-lagged design (N = 237), and Study 2 used a two-wave (four-week period) survey design (N = 313). The findings suggest that workers’ psychological ownership and creative self-efficacy mediate the association between ethical leadership and employee service innovation behavior. In addition, sleep quality functions as an important boundary condition of the association between creative self-efficacy and service innovation behavior. Our research has important implications for understanding the impact of ethical leadership on important employee outcomes while considering the boundary condition role of employee sleep quality. The limitations of the study and future research directions are discussed.