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Linking ethical leadership to administrative innovation in Ethiopian banks: the mediating role of knowledge process capabilities

Gedif Tessema Sinshaw (School of Management and Public Administration, College of Business and Economics, University of Gondar, Gondar, Ethiopia)
Atul Shiva (University School of Business, Chandigarh University, Mohali, India)
Manjit Singh (University School of Applied Management, Punjabi University, Patiala, India)

Journal of Management Development

ISSN: 0262-1711

Article publication date: 25 June 2021

Issue publication date: 10 August 2021

223

Abstract

Purpose

This paper aims to examine the mediating role of knowledge process capability (KPC) between ethical leadership (EL) and administrative innovation (AI) in the banking sector of Ethiopia.

Design/methodology/approach

The study was conducted by a standardized questionnaire survey to collect the data from 266 employees of Commercial Bank of Ethiopia in 93 branches. The study employed structural equation modeling approach with Analyzing Moment of Structures 23.0 to test the hypothesized mediation model.

Findings

The results of this investigation disclose that EL has a significant and direct effect on AI and KPC. KPC also influences AI significantly.

Originality/value

The study revealed that KPC plays a partial mediating role in linking EL to AI, which is a new contribution to the existing literature of EL. This dimension can provide new dimensions to design organizational leadership which is based on sustainability paradigm. This can strengthen the organizational capabilities aiming to increasing innovative behaviors in order to have a deep-seated strategy.

Keywords

Acknowledgements

The authors are grateful to the esteemed reviewers for their extremely useful suggestions to improve the quality of the article.

Funding: The author(s) received no financial support for the research, authorship, and/or publication of this article.

Citation

Sinshaw, G.T., Shiva, A. and Singh, M. (2021), "Linking ethical leadership to administrative innovation in Ethiopian banks: the mediating role of knowledge process capabilities", Journal of Management Development, Vol. 40 No. 5, pp. 418-437. https://doi.org/10.1108/JMD-04-2020-0124

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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