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Exploring the mediating effect of intellectual capital on the relationship between ethical leadership and innovative performance

Exploring the mediating effect of intellectual capital on the relationship between ethical... The study examines the role of ethical leadership in the innovative performance of employees. Further, the purpose of the study is to investigate the mediating effect of human capital and social capital on the relationship between ethical leadership and the innovative performance of employees.Design/methodology/approachThe study collected primary data from 386 managerial-level employees of information technology (IT) companies in the northern region of India. Structural equation modelling (SEM) was used to analyse the data and derive the direct and indirect effects.FindingsThe findings indicate a significant positive impact of ethical leadership on the innovative performance of employees. Further, it was found that ethical leadership has both direct and indirect effects on the innovative performance of employees, where the indirect effect was mediated through intellectual capital (IC). The research confirms that IC and ethical leadership are crucial resources for fostering a knowledge-driven culture and innovative performance amongst employees.Originality/valueThe research has made a novel attempt to explore the interplay between ethical leadership, IC and innovative performance in the Indian context. Further, the study provides actionable strategies for business leaders to optimise business processes and encourage innovative practices amongst employees in the company. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Business Process Management Journal Emerald Publishing

Exploring the mediating effect of intellectual capital on the relationship between ethical leadership and innovative performance

Sharma, Diksha; Sharma, Meena
Business Process Management Journal , Volume 30 (6): 23 – Oct 29, 2024
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References (131)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1463-7154
DOI
10.1108/bpmj-02-2024-0093
Publisher site
See Article on Publisher Site

Abstract

The study examines the role of ethical leadership in the innovative performance of employees. Further, the purpose of the study is to investigate the mediating effect of human capital and social capital on the relationship between ethical leadership and the innovative performance of employees.Design/methodology/approachThe study collected primary data from 386 managerial-level employees of information technology (IT) companies in the northern region of India. Structural equation modelling (SEM) was used to analyse the data and derive the direct and indirect effects.FindingsThe findings indicate a significant positive impact of ethical leadership on the innovative performance of employees. Further, it was found that ethical leadership has both direct and indirect effects on the innovative performance of employees, where the indirect effect was mediated through intellectual capital (IC). The research confirms that IC and ethical leadership are crucial resources for fostering a knowledge-driven culture and innovative performance amongst employees.Originality/valueThe research has made a novel attempt to explore the interplay between ethical leadership, IC and innovative performance in the Indian context. Further, the study provides actionable strategies for business leaders to optimise business processes and encourage innovative practices amongst employees in the company.

Journal

Business Process Management Journal – Emerald Publishing

Published: Oct 29, 2024

Keywords: Ethical leadership; Intellectual capital; Innovative performance; Human capital; Social capital; Mediation analysis; Knowledge management

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