This study aims to investigate the impact of ethical leadership (ETL) on employee deviant behavior (EDB) and adaptive performance (AP) within the hotel industries of Egypt and Saudi Arabia. It also examines the moderating effect of Islamic work ethics (IWEs) on these relationships.
A cross-sectional quantitative survey was administered to 514 frontline employees working in the hospitality sectors of Egypt and Saudi Arabia. The data were analyzed using partial least squares structural equation modeling (PLS-SEM) via WarpPLS 8.0.
Results reveal that AP is positively and significantly impacted by ethical leadership and that EDBs are negatively related to ethical leadership. Furthermore, the results of the moderation analysis revealed that the influence of ETL on AP and deviant behaviors is more pronounced in workplaces with high adherence to Islamic work ethics. Finally, PLS-multi-group analysis (MGA) results did not show significant variation between the two groups.
The findings indicate that ETL significantly enhances AP while reducing deviant behavior among employees. Moreover, IWEs strengthen the relationship between ETL and both outcomes: they amplify the positive effect on AP and the negative effect on deviant behavior. However, the PLS-MGA showed no significant differences between the Egyptian and Saudi samples.
This study adds to the leadership literature by identifying IWEs as a key cultural moderator that enhances the effectiveness of ETL. It underscores the dual role of ETL in promoting positive employee behaviors and curbing negative ones. For practitioners, the findings offer actionable insights for hospitality managers aiming to foster ethical behavior and adaptability through values-based leadership.
