Ethical leadership and organisational identification: the mediating effect of psychological contract —evidence from Sri Lankan apparel industry

Abstract

Albeit a plethora of studies were undertaken across many countries, cultures, and industries, ethical leadership in the workplace remains a topic of ongoing debate and inquiry. This study aims to investigate the direct and indirect impact of ethical leadership on organizational identification in employees working in the apparel industry in Sri Lanka. Drawing on social exchange theory, the study further explores the mediating role of psychological contract in the impact of ethical leadership on organizational identification. The study adopted a survey research strategy and the data were collected from conveniently chosen employees working in the apparel industry with the aid of a self-administered questionnaire. The questionnaires were distributed among the respondents via online and a total of 414 responses were received. As a caveat, the fundamental statistical assumptions and the psychometric properties of measures were examined. The results showed that ethical leadership positively impacts organizational identification. The study averred a partial mediation of psychological contract in the impact of ethical leadership on organizational identification. The current study pushes back the frontiers of literature in the terrain of leadership and organizational studies and provides useful practical implications.