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Purpose

The purpose of this study is to explore how and when ethical leadership enhances bootlegging. To achieve this purpose, the authors proposed a moderated dual-path model in this study.

Design/methodology/approach

The model was tested on two related studies. Study 1 was based on three-wave, collected data from a sample of 511 employees of Chinese companies. Data used in Study 2 was collected by survey from employees and their direct leaders of multiple departments of companies in China.

Findings

In Study 1, the authors found that moral efficacy and moral identity mediate between ethical leadership and bootlegging. Findings from Study 2 provide convergent support of moral efficacy’s and moral identity’s impact on the mediation relationship between ethical leadership and bootlegging. Moreover, the results of Study 2 further reveal that the relationship between ethical leadership and moral efficacy (or moral identity) was more significant among leader–follower with different genders.

Originality/value

This study not only enriches the literature on ethical leadership and gender (dis)similarity, but also helps managers to better understand the function of bootlegging.

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