Linking Ethical Leadership to Employee Creative Performace: The Role of Leader-Member Exchange and Work Engagement

Abstract

Purpose: The purpose of this research is to investigate the mediating role of leader-member exchange (LMX) and work engagement in the relationship between ethical leadership and creative performance. Theoretical framework: The study is based on the theoretical foundation that ethical leadership positively influences creative performance. It further posits that this relationship is mediated by both leader-member exchange (LMX) and work engagement. Design/Methodology/Approach: Data for this study was collected from a Vietnamese service firm, with a sample comprising 78 leaders and 354 employees. The collected data was analyzed using structural equation modeling (SEM) to examine the proposed relationships. Findings: The findings of the study indicate a significant and positive correlation between ethical leadership and creative performance. Additionally, the study reveals that ethical leadership exerts an influence on both leader-member exchange (LMX) and work engagement, which subsequently enhance employees' demonstration of creativity in their work. Research, practical & social implications: This research sheds light on the mediating mechanisms through which ethical leadership impacts creative performance. The findings highlight the importance of fostering positive leader-member relationships and promoting work engagement in order to enhance employees' creative behaviors. Practically, the study suggests that organizations should prioritize the development of ethical leadership qualities to foster a creative work environment. Moreover, the research contributes to the broader social implications by emphasizing the significance of ethical leadership in promoting creativity and innovation within organizations. Originality/Value: This research contributes to the existing literature by examining the mediating role of leader-member exchange and work engagement in the relationship between ethical leadership and creative performance. The study provides valuable insights into the mechanisms through which ethical leaders can enhance creativity in the workplace. The findings of this research contribute to the understanding of the importance of ethical leadership and its impact on organizational outcomes, thereby adding to the originality and value of the study.