Research suggests that ethical leadership influences employees’ behavior and organizational functioning. Thus, the purpose of this study is to investigate the role of ethical leadership in the improvement of employees’ innovative performance. Specifically, this research developed and tested a framework about the intermediating mechanism of social capital in the relationship between ethical leadership and employees’ innovative performance. The current study integrated assumptions of social learning and social exchange theories, which postulate that the leadership has a direct effect on the employees’ (...) conduct, principally through role modeling and the reciprocal landscape. Data were collected through in-person administered questionnaire-based survey from 297 employees working in the manufacturing sectors of Pakistan. The conceptual model of our research was analyzed applying Structural Equation Modeling (SEM). The results exhibited that the ethical leadership plays an important role in fostering employees’ innovative performance. The present study also found that social capital plays an intermediating role between the ethical leadership and employees’ innovative performance relationship. The current study contributed to the leadership and innovation literature and provided insights in examining the ethical leadership-employees’ innovative performance relationship through the intermediating mechanism of social capital. (shrink)

Creativity and morality are key attributes that stakeholders demand of organizations. Accordingly, higher education institutions and professional training programs also seek to cultivate these attributes in future leaders. However, research has hitherto shown that, under certain conditions, creativity may conflict with morality. This complicates the development of creative individuals who are also moral. We examined the complex relationship between creativity and moral reasoning with data collected from a group of undergraduate students. By considering the cognitive processes behind creativity and moral (...) reasoning, we propose perspective taking as a moderating factor. Specifically, we found that while creative individuals might not necessarily adopt a lower level of moral reasoning, there was a more nuanced moderating relationship among creativity, perspective taking, and moral reasoning. That is, individuals who were weak in perspective taking tended to adopt a lower level of moral reasoning if they were also creative. Perspective taking was also directly and positively associated with moral reasoning. We explore the implications of our findings for future research and curriculum/program design. (shrink)

Leaders, particularly new leaders, seek to establish high levels of trust, as it has been associated with higher levels of effectiveness and group outcomes. This study is designed to understand how trust changes and develops for leaders in a new role and the implications of that change. Although calls for research on trust over time have been made for the past 2 decades, our knowledge of this phenomenon is still quite limited. The findings indicate that leader and unit performance is (...) a function not only of absolute trust level, but is also affected by the direction and magnitude of change in trust across time periods, with the highest levels of effectiveness being associated with leaders who exhibited an increase in trust from the group over time. The data also suggest that the direction and rate at which trust grew was determined by initial expectations and transformational leadership behaviors. (shrink)

Given the nature and importance of Islamic banks in recent times, we can expect them to have significant intellectual capital anchored in their Sharia‐based knowledge and expertise. However, we know very little or nothing about how and why intellectual capital‐related information is provided in their corporate reports. We fill this gap in our existing knowledge of the field with a view to enhance relevant literature. As far as we know, this article is one of the earliest exploratory attempts to examine (...) intellectual capital reporting practices of an Islamic bank. We have undertaken a longitudinal (2001–2015) case study related to the intellectual capital reporting practices of an Islamic bank. Key results include significant rise of intellectual capital reporting over time, dominance of internal capital‐related items in intellectual capital reporting profile and the dynamics of changes in intellectual capital reporting practices over time. Through an institutional theory lens, we explain that this is due to the changes in the external institutional environment and various intra‐organisational factors such as strong ethical culture, unique knowledge base (Sharia), and corporate governance regime. (shrink)

Innovation ecosystems are formed by interconnected firms that coalesce in interdependent networks to jointly create value. Such ecosystems rely on the norm of reciprocity—the give-and-take ethos of sharing knowledge-based resources. It is well established that an ecosystem firm can increase its competitive advantage by increasing interconnectedness with partners. However, much research has focused heavily on the positive role of inbound openness or ‘taking’ resources from ecosystem partners. The positive role of outbound openness or ‘giving’ resources to ecosystem partners remained less (...) explored and often misunderstood as eroding competitive advantage. We address this gap by first developing a conceptual model about the mediating role of inbound openness and outbound openness in the relationship between a firm’s ecosystem interconnectedness and competitive advantage. We then test this model on a large sample (_n_ = 794 managers) from Silicon Valley (USA) and Macquarie Business Park (Australia). Results indicate that outbound openness is a more important mediator than inbound openness for ecosystem firms seeking competitive advantage. Our findings suggest that the effect of outbound openness goes beyond merely generating tit-for-tat reciprocity to generating strategic benefits in their own right. The study adds to knowledge about the ethics of innovation ecosystems by showing that outbound openness to partners improves competitive advantage. Ecosystem firms, thus, do well by doing good when they increase their outbound openness. (shrink)

Accountability for corporate social responsibility (CSR) and its societal challenges is undetermined, and it is unclear whether business or society should carry these responsibilities. Despite severe criticism from some, many organizations continue to invest in and promote CSR. The purpose of this multiple-case study was to increase the understanding of the phenomenon from the perspective of a purposeful sample of participants who contribute to CSR execution and who were representatives of the 10 organizations identified as active promoters. The participant corporations (...) (case studies), in Europe and North America, were mainly in the telecommunications industry. Study data came from 11 face-to-face, semistructured interviews with chief executive officers (CEOs) and other CSR key participants, a review of corporate archival records, and a review of other sources regarding the effective implementation of CSR in these organizations. The conceptual framework consisted of Carroll’s constructs of CSR based on economic, legal, social, and discretionary elements. The constant comparative method was used to analyze the interview data and identify factors leading corporations to continue to engage in CSR. These factors were economic, social impact, legal compliance, or good reputation, sponsored by transformational or adaptive leaderships and endorsed by visionary CEOs. The findings may enlighten and motivate other organizations to engage in CSR programs and connect stakeholders’ contribution to a broadened positive social change. (shrink)