"Seeds of Trust, Blossoms of Innovation": The Mediating Role of Employee Engagement Between Ethical Leadership and Innovative Work Behaviour

Abstract

This study investigates the association between ethical leadership and innovative work behaviour, with particular emphasis on the mediating role of employee engagement. Drawing on Social Learning Theory and Social Exchange Theory, the study explores how ethical leadership encourages employees to engage in innovative activities by strengthening their psychological involvement in their work. A cross-sectional research design was adopted, and data were collected from employees through a structured questionnaire comprising previously validated measurement scales. A total of 300 valid responses were analysed using the Partial Least Squares Structural Equation Modelling (PLS-SEM) approach in SmartPLS. The assessment of the measurement model demonstrated satisfactory levels of reliability and validity. The structural model findings indicated that ethical leadership had a significant positive effect on both employee engagement and innovative work behaviour. Employee engagement was also positively and significantly associated with innovative work behaviour. Moreover, the mediation analysis confirmed that employee engagement significantly mediated the relationship between ethical leadership and innovative work behaviour. These findings suggest that ethical leadership may promote innovative work behaviour both directly and indirectly by enhancing employees' engagement with their work. The results highlight the importance of ethical and supportive leadership in strengthening employee involvement, encouraging discretionary effort, and promoting innovation within organisations. The study contributes to the literature on leadership and organisational behaviour by providing insight into the motivational process through which ethical leadership is associated with innovative work behaviour. Its findings also offer practical implications for organisations aiming to strengthen ethical leadership practices, improve employee engagement, and encourage innovation.

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