Performance and Behavior Affected by Ethical Leadership, Studyof a Moderated-Mediation in the IT- Industry of Pakistan

Abstract

This study has been conducted with the purpose to investigate the relationship between the dimensions of ethical leadership and firm performance with mediating effect of intrapreneurial behavior among the employees and moderated mediating role of psychological capital. With a cross-sectional, quantitative analysis, this paper seeks to test the hypothesis by using the questionnaire survey technique with individuals serving in Pakistan's IT (design) industry. The data consists of 157 responses from individuals of the aforementioned industry. The study finds a significant positive relationship between ethical leadership and firm performance while employee psychological capital strengthens the relationship between ethical leadership and intrapreneurial behavior. The global economy is prone to significant changes that require the generation of new ideas and effective leadership in order to implement those ideas. This study will provide essential insights for leaders to develop an ethical attitude if they really want to compete in the growing markets and succeed. It will also help organizations while hiring new employees for a leadership role therein. The study contributes to the present knowledge of ethical leadership and firm performance conditional over psychological capital and intrapreneurial behavior.