THE EFFECT OF ETHICAL LEADERSHIP ON INNOVATIVE WORK BEHAVIOR: DOES EMPLOYEE SELF-EFFICACY PLAY A ROLE?

Abstract

This study has examined the influence of ethical leadership on employees’ innovative work behavior with self-efficacy as mediating variable. Respondents were selected using a purposive sampling method, and a total of 227 employees from the financial sector in Bangladesh participated in this study. A cross-sectional research design was employed, and the proposed model was tested using Smart-PLS 4.0. The findings indicated that ethical leadership has a significant positive effect on employees' innovative work behavior. Furthermore, self-efficacy was found to significantly mediate the relationship between ethical leadership and innovative work behavior. This study contributes to a deeper understanding of how ethical leadership fosters innovative work behavior through enhanced self-efficacy within the context of Bangladesh's financial sector. The findings are discussed in terms of their theoretical contributions and practical implications. Finally, the study outlines its conclusion, limitations, and directions for future research.