Abstract

With the increasing demand for ethical standards in the current business environment, ethical leadership has received particular attention. Using social exchange theory and social learning theory, this study examines the relationship between ethical leadership and employees' service innovative behaviour with mediating role of organisational identification and moderating role of an employee's proactive personality. The sample for the study included 321 subordinates and 62 supervisors from 26 hotels across Pakistan. Results indicated that ethical leadership promotes service innovative behaviour at workplace, while organisational identification mediates the effect of ethical leadership on service innovative behaviour. Furthermore, the relationship between ethical leadership and service innovative behaviour via organisational identification is moderated by an employee's proactive personality. This study highlights the importance of ethical leadership in enhancing service innovative behaviours among hotel employees. It advances theory of ethical leadership by examining the intervening effect of organisational identification and proactive personality on employee's service innovative behaviours.

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