Ethical Leadership and Employee Creative Performance: Discussing the mediating role of Employer Feedback Environment in Software Houses of Pakistan

Abstract

Purpose: The basic purpose of this study was to explore employee creative performance, the contextual issues in the form of the leader’s style, and the feedback environment established by the leader in the Pakistani context. This study has presented a mechanism model for an understanding predictor of employee creative performance with the help of various theories. Methodology: Data was collected and analyzed from software houses registered in PSEB from 320 leader-employee dyads. Our research design was correlational. To reduce the common method biases, data was collected from two sources: leaders and their subordinates by sending the online questionnaire. To measure the uni-dimensionality and validity of construct EFA was performed through SPSS. Further, to assess the common method biases Heterotrait-Monotrait Ratio (HTMT) was used. SEM was used to compute, analyze, and prove relationships of proposed hypotheses and model fitness. CFA was used to confirm the theoretical measurement model, on AMOS 24 by using the rotated factor analysis. Finding: To sustain in this era of the competitive global business environment, organizations can stimulate employee creative performance by focusing on contextual and subjective variables. As per the findings, contextual factors like feedback environment associated with the leader regarding his style should be ethical, have a vital position in an organization for improving creative performance among employees. Specifically, the current study owns its justification and contribution to the literature and practical implications in various ways. Conclusion: The study indicates that the ethical style of leadership has a strong positive (+) association with the creative performance of employees as well as with the employer feedback environment. Also the employer feedback environment has partial mediation among ethical leadership and employee creative performance.