This study develops and empirically tests a theoretical framework explaining how ethical leadership enhances employee performance in the hospitality industry. It aims to examine the mediating roles of ethical behaviour, employee satisfaction, psychological empowerment and creativity in this relationship.
By employing a quantitative, cross-sectional design, this study applied partial least squares structural equation modelling to analyse data collected from 300 full-time employees across 45 4-star and 28 5-star hotels in Oman, selected through convenience sampling.
Empirical evidence demonstrates that ethical leadership exerts a significant positive influence on employee ethical behaviour, job satisfaction and psychological empowerment. These antecedents have a positive effect on employee creativity, which is a strong predictor of employee performance. Mediation analysis reveals that employee satisfaction constitutes the strongest indirect antecedent of employee performance through employee creativity, followed by psychological empowerment and ethical behaviour.
These findings point to a managerial implication. Hotel managers who consistently model fairness, openness, ethical judgement and accountability help cultivate a workplace where ethical conduct becomes the norm. Moreover, recognition practices play a demonstrable role: employees whose contributions are formally acknowledged and who receive constructive feedback report significantly higher levels of job satisfaction. Hospitality organisations would also do well to invest deliberately in empowerment, giving staff autonomy in decision-making, taking their input seriously and reinforcing their sense of competence and influence.
This study extends social learning theory (SLT) by uniquely integrating behavioural, affective and motivational pathways (ethical behaviour, employee satisfaction and psychological empowerment) within a single framework. This integration elucidates how ethical leadership drives employee creativity and performance in the hospitality industry, moving beyond isolated construct analyses.
