Impact of Ethical Leadership on Employee Voice Behavior and Innovative Work Behavior: Role of Psychological Empowerment, Leader-Member Exchange, Job Performance and Locus of Control

Abstract

This research examines the impact of ethical leadership on employee voice behavior and innovative work behavior considering psychological empowerment and leader-member exchange as mediators. Furthermore, job performance has been suggested as a moderator of ethical leadership and voice behavior relationship, whereas, locus of control has been proposed as moderator of ethical leadership and innovative work behavior relationship. Based on literature reviewed and gaps identified this study proposed a comprehensive research framework suggesting ten hypotheses. Ten government research organizations were selected and 800 questionnaires were distributed to the targeted sample for collecting primary data for the study. Overall 546 filled questionnaires were received from which 508 were usable. Step-by-step procedures were followed to check for the validity and reliability of predeveloped scales used in this research. Validity as well as internal consistency of scales was determined via calculating item total correlations and total scale correlations using SPSS. Moreover, to further test the validity and dimensionality of predeveloped scales, respective items of all the scales were factor analyzed via confirmatory factor analysis that was carried out using AMOS. Internal consistency reliability of each scale was assessed via computing Cronbach’s alpha in SPSS. Mean differences for demographic groups of respondents on study variables were examined through applying independent samples t-test and analysis of variance (ANOVA) test. Bootstrap-based regressions were performed using PROCESS in SPSS to test study hypotheses. To test the mediation and moderation hypotheses, essential conditions outlined by Baron and Kenny were followed. Specifically, to test mediation hypotheses, in addition to traditional 4-step approach of Baron and Kenny, significance of indirect effect was also tested. The results indicated that ethical leadership significantly and positively relates to voice behavior, innovative work behavior, psychological empowerment and leader-member exchange. It was also found that psychological empowerment mediated the relationship between ethical leadership and the outcomes (voice behavior and innovative work behavior). Results showed that leader-member exchange only mediated the relationship between ethical leadership and voice behavior. Job performance was found to moderate ethical leadership-voice behavior relationship. However, mediating role of leader-member exchange and moderating role of locus of control in the relationship of ethical leadership and innovative work behavior was not supported. On the basis of results, study contributions, possible implications, limitations and further areas for research were also discussed. Present research has implications for policy makers who wish to identify and promote advantageous leadership practices for encouraging employee voice behavior and innovative work behavior. Moreover, this research supplemented literature for scholars focusing on outcomes of ethical leadership.