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Grounded in the framework of social learning theory (SLT), the current study explores the impact of leaders’ unethical proorganizational behavior (UPB) on their subordinates’ self-management and moral self-efficacy, which, in turn, affect knowledge hiding and sharing among followers. This study aims to examine how instrumental thinking influences the relationship between leader UPB and subordinate behaviors, shaping knowledge sharing and hiding.

Using a longitudinal approach, this research uses a two-wave data collection strategy with a one-month interval. The study cohort comprises 378 employees drawn from technology service firms situated in China.

Empirical findings confirm that leader UPB is linked to increased follower self-management and knowledge hiding, as well as reduced moral self-efficacy. Instrumental thinking moderates these effects, amplifying knowledge hiding and diminishing moral self-efficacy while reducing knowledge sharing.

The study contributes to the existing literature on UPB by offering insights into the distinct consequences of leader UPB on knowledge-related behaviors of followers. Furthermore, the exploration of employees’ instrumental thinking in the context of leader UPB underscores the strategic manipulation of knowledge to fulfill individual goals, thereby enriching the underpinnings of the SLT. The study underscores the imperative for organizations to grasp the implications of UPB and underscores the necessity for stringent ethical frameworks to mitigate its deleterious impact.

The study contributes to the existing literature on UPB by offering insights into the distinct consequences of leader UPB on knowledge-related behaviors of followers. Furthermore, the exploration of employees’ instrumental thinking in the context of leader UPB underscores the strategic manipulation of knowledge to fulfill individual goals, thereby enriching the underpinnings of the SLT. The study underscores the imperative for organizations to grasp the implications of UPB and underscores the necessity for stringent ethical frameworks to mitigate its deleterious impact.

The present study addresses a gap in the current literature by elucidating the multifaceted outcomes of leaders’ UPB on paradoxical behaviors related to knowledge sharing and hiding among followers. This nuanced examination underscores the need to comprehend the intricate contingencies that accentuate the effects of UPB, particularly in the realm of leadership dynamics. Grounded in SLT, this study delves into leadership dynamics and ethical decision-making.