Ethical leadership, intrinsic motivation and creativity: The mediated

mechanism and an interacting effect

Abstract

This study examines the relationship between ethical leadership and employee creativity with
mediating role intrinsic motivation. Data were collected from 120 supervisor–subordinate
manufacturing firms across Pakistan. Confirmatory factor analysis confirmed the distinctiveness
of variables used in our study. The results confirmed that ethical leadership promotes creativity at
workplace, while intrinsic motivation effect of ethical leadership on creativity. The implications
are discussed.

Keywords: employee creativity, ethical leadership, trust in leader, creative personality

INTRODUCTION
In today's complex environment, organizations need to adopt the responsible approach to
encourage creative behavior among employees. Organizations today are submerged in an
environment of changing systems and technology as well as increasing performance standards
for employees, changing and increasing consumer demand. (Heunks, 1998; Shalley, Zhou, &
Oldham, 2004; Belleflamme & Peitz, 2015). Therefore, there is a lot of pressure on organizational
leaders on ways to enhance their creativity in the organization because of the increasing
globalization, competitiveness, and pace of technological change. For such organizations,
creativity is seen as such a core competency. Therefore, at present, researchers and practitioners
are synonymous with organizational survival and the creativity of employees. (Hirst, Van
Knippenberg, & Zhou, 2009; Williams & McGuire, 2010; Xia & Li-Ping Tang, 2011)
The study of ethical leadership tells us organizations need to understand how to achieve the
desired goals while maintaining certain standards of behavior, or in some other way, where there
are causes, endpoints, and triggers equally important. The leader plays an important role in the
success of the organization. They identify the hidden capabilities of their subordinates. The leader
can motivate his employee to achieve his goals. For example, ethical leadership was positively
correlated with leader consideration, interactional fairness, leader honesty, and idealized
influence (e.g., Avey et al; De Hoogh and Den Hartog 2008; Detert et al. 2007; Mayer et al. 2009;
Neubert et al. 2009; Walumbwa and Schaubroeck 2009).
Creativity brings something new into the organization. This results in a certain degree of
intellectual knowledge and a level of emotional maturity that gives freedom of expression and
the opportunity to utilize all resources. (Townsend, 2000). Creativity and Innovation are two
different term, creativity mean to brings something new that must be not necessary to
implement successfully while innovation is the successful implementation of creative ideas
(Amabile et al., 1996: 1155). Creativity accomplish the new ideas at the work place to realize that
employee have a right to raise their voice to improve the work process (Chughtai, 2016).
Therefore, creativity is enhanced in the organizational culture that nurtures and fosters a creative
environment. (Chua, Roth, & Lemoine, 2015). Leadership plays an important role in helping to
build and enhance creativity as an important part of organizational culture. (Amabile, Schatzel,
Moneta, & Kramer, 2004).
Research scholars have pointed to the supporting role of leadership in fostering employees'
creativity. (Javed, Bashir, Rawwas, & Arjoon, 2017). Numerous studies have found that
employees' creativity has a very positive influenced by the leader's ethical behavior. (Zhu, May,
& Avolio, 2004; Brown, Treviño, & Harrison, 2005; GU, Tang, & Jiang, 2015). Creativity of
employee increase or decrease on the base of leader controlled (Tierney & Farmer, 2002, 2004;
Jung, Chow, & Wu, 2003; Wang & Zhu, 2011; McMahon & Ford, 2013).
This study contributes to the ethical leadership literature, and employee creativity in several
ways. Determining Social Exchange Theory, we strive to engage in limited research on the basic
process by which employees can be motivated at work by influencing employees' creativity. All
previous studies highlight that there are various mediation mechanisms that mediate the
relationship between moral leadership and creativity. Specifically, Javed etc. (2016) asked future
researchers to examine the role of mediation mechanisms in motivating employees in the
relationship between ethical leadership and creativity.

Ethical Employee
leadership Creativity

Intrinsic
Motivation

The present study contributes to the theoretical development of creativity in several ways. First,
this study attempts to outline the impact of moral leadership on creativity. Second, the present
study will examine the mediating role of trust in leadership among moral leadership and
creativity. Third, this study will also examine the moderating role of openness between trust in a
leader and creativity. The research model is shown in Figure 1.

Hypothesis Development
Ethical Leadership:
Ethical leadership is supplied as' reasonably suitable behavior through private movements and
relationships and selling such behaviors to subordinates thru -way verbal exchange,
reinforcement and choice-making. '(Brown, Trivia, & Harrison, 2005: 120). In other words, this
field highlights 3 critical traits of a moral chief: he or she who (a) practices what he teaches, (b)
believes in justice, and (c) Talks about meaningful facts.
The difference is that the concept of the affiliation may awareness on the first issue of the moral
leader's characteristics (that is, what he teaches). It states that employees research moral or
unethical behaviors through operating with their friends and leaders (Ferrell, Frederick, & Ferrell,
2013). Research has also been determined that the moral values of subordinate officers are far
greater than the ethical decisions in their superiors to demonstrate their loyalty to their friends
(Mayer, Koizi, & Greenbaum, 2010). Is this a fashion (Ferrell, Frederick, & Ferrell, 2013)? Social
concept in idea suggests that these morals are via role modeling methods (Bandura, May 1977,
Meyer, Koizi, Greenbaum, Boards, & Salvador, 2009). This may be executed when leaders interact
in behaviors that strengthen the properly-being of others and refrain from behaviors that may
damage others (Tours & Ophory, 2009). These leaders can use a ramification of strategies to
empower their subordinates, beautify their shallowness, and adapt their values, concepts and
attitudes to the standards in their organization and community.
The concept of organizational justice, which become evolved by means of Greenberg (1987) and
advanced by using Coldwright (2001), may consciousness on addressing the alternative part of
the characteristics of the moral chief (this is, folks that agree with in justice). It argues that a
worker makes a decision a leader's behavior and reacts accordingly. Decision and Reaction The 4
approaches undergo four ranges: division, process, mutual and informative. Employees for the
primary time examine the ability for useful resource distribution that can be everlasting, which
includes pay will increase, or unreliable ones, including identification, if they assume that this
sort of department is same then the belief about justice prevails. Employees then query the
manner that results in the choice to distribute 'pay boom' or 'identity' on the stage of the method.
If they feel that this technique is permanent, moral, impartial and their voices growth their
perceptions of justice. In the 1/3 interplay, employees treat their leader with them. If the chief
treats them with dignity, dignity and appreciate, their delight is strengthened. Finally, personnel
pass directly to a more superior stage of evaluation: the informational degree. They choose the
interpretation of a leader's choices. Employees are happy if the chief is honest, presenting unique
and timely data, together with why 'profits will increase' are dispensed in a sensible way.

Employee Creativity
Employee creativity refers to product era, advertising and implementation and useful thoughts
about products, strategies, offerings, or strategies (Zhou, 2003). During this technique,
individuals will face numerous risks, conflicts, problems, and ethical dilemmas (To & Lau, 2012).
Because the emphasis on ethical management is on ethics, equity, autonomy, and those's focus
(Brown & Trieve, 2006), the innovative ability of the job could have a full-size impact. Carmeli,
and so on. (2013). Describes how leaders can foster employees' creativity with the aid of
presenting personnel with structure, tremendous power, and resources, growing psychological
conditions, and seeking great relative alternate. Will cause the show of abilities. However, it isn't
yet clean exactly how leadership fashion influences worker creativity. Most researchers have
defined the have an effect on of moral management at the outcome of the procedure as a
procedure of social exchange or social education (Brown & Trieve, 2006). In precise, the honest
and balanced selection of moral leaders’ shapes fans' perceptions of social exchange
relationships (Brown & Trieve, 2006 May Myers et al., 2009), ensuing in followers repeating this
conduct. (Ewe et al., 2011). Social Learning Theory (SLT; Bandura, 1986) is based at the concept
that humans examine from the position fashions they discover attractive. Therefore, moral
leaders can have an impact on the self-efficacy of their personnel thru their credibility and ethical
requirements (Evey, Worsing, & Palinsky, 2012). However, there are a restrained wide variety of
studies that use social trade theory (SET; Blow, 1964) and SLT to provide an explanation for the
impact of ethical management on followers (Lowe, 2012 Wal. Walumbwa et al., 2011).
Ethical leaders are characterised by way of trends consisting of integrity, honesty, worrying,
altruism, openness, collective motivation, trustworthiness, and justice, and by their conduct as
principled folks that make balanced decisions (Brown et al., 2005; Brown & Treviño, 2006). Tu
and Lu (2012) discovered that ethical leadership is positively related to employee creativity
through two mechanisms: cognition and motivation. A feature of the cognitive mechanism is that
fans are more likely to take note of work importance and generate new thoughts or methods to
achieve organizational goals, while leaders who're ethical underline how essential the work of
those employees is to other personnel, to their institution members, and to the agency (Brown
& Treviño, 2006; Tu & Lu, 2012). When moral leaders display organizational dedication (De Hoogh
& Den Hartog, 2008), personnel are much more likely to sense psychologically safe sufficient to
talk out with new ideas (Tu & Lu, 2012).

Intrinsic Motivation
Motivation is a very important and complex topic. It has been well studied, but strong
disagreements remain. Three prominent ideas about motivation are Abraham Maslow [2],
Frederick Herzberg, and Hackman-Oldman. Maslow's theory relates to the psychological aspects
of stimulation, while Herzberg's theory concerns the actual tools that can be used as an incentive
for employees. Maslow formulates a level-level requirement in an attempt to define triggers. He
indicates that the lowest need is the one that needs to be addressed to encourage the individual,
and the needs must be met in a categorical manner. Its levels, from low to high, are physical,
safety, social, honor and self-realization.
Scott and Bruce (1994) point out that research on modern work behavior is primarily a study of
how individual innovative behaviors and motivations are at the center of modern work behavior.
Some scholars have proven the mediating role of intrinsic motivation in the relationship between
leadership and innovation, creativity and innovative work practices. To identify the motivational
aspects of ethical leadership and the mechanisms that link it to employees' innovative work
behavior, we identified internal motivations as mediators. According to Ryan and Deci (2000),
intrinsic motivation refers to the carrying out of an activity in order to interest and enjoy the work
(Amabile et al. 1994; Gagin and Deci 2005), rather than to separate results. Such as or identity
(Amabile 1993). Intrinsic motivations are generated by the individual's positive reaction to the
task itself, such as interest, participation, curiosity, satisfaction or positive challenge (Amabile et
al. 1996), which serve as a type of job reward. According to the concept of moral leadership at
the individual and group level, we similarly conceptualized individual internal motivation and
group internal motivation. Individual motivation, on the other hand, indicates the degree to
which a task performs a specific task on its own, while the group's internal motivation, collective
belief, perception, and experience define that group members are internalized. Work to satisfy
interest, challenge and job satisfaction. Except for external rewards, both constructs identified
multi-faceted internal motivation and mediated the relationship between multi-faceted moral
leadership and modern work behavior. Following the theory (for example, Deci 1975, 1976; Deci
and Porac 1978; Deci and Ryan 1985; Deci et al. 1975), we were attracted to CET (Deci and Ryan
1985) to explain How does ethical leadership at the surface affect modern work? Behavior
through internal stimulation at different levels. CET deals with how external factors influence
internal motivation, which claims that influence is to the extent that external factors influence
perceptions of competence and independence. The theory also suggests that the psychological
needs of autonomy and competence are the ones that actually indicate internal motivation.
Qualification refers to the knowledge that an individual has the skills necessary to successfully
perform in a particular context (Ryan and Deci 2000), while making decisions about autonomous
work practices, procedures, speed and effort. Reflects one's power to do Spritz et al. 1997). The
CET model (Deci and Ryan 1985) also indicates that individuals promote internal motivation after
inward continuity. By providing the ability or indirect independence.

H1: Ethical leadership is positively related to creativity.

H2: Intrinsic Motivation mediates the relationship between ethical leadership and creativity.

Methodology
Research Design
The purpose of this study to examine the effect of ethical leadership on employee creativity with
the mediating role of intrinsic motivation in employee of industrial sector in Pakistan, because
the time is that in which every organization have struggle to continuous improvement to give
more feature to their customer. So, the innovation is must be necessary for every organization.
(Raustiala & Sprigman, 2006; Fletcher, 2013; Van der Velden, Kuusk, & Köhler, 2015), Therefore,
it is quantitative in nature. Considering the survey as a research strategy, a cross-sectional
approach to data collection was considered. Questionnaire contain two parts; first part contain
demographic question and second part is the main part for having the scale of constructs.
Scale of constructs
The measurements item adopted from existing literature; All the variables were measured on the
5-points leaker scale. Which (1=Strongly Disagree to 5=Strongly Agree).
Ethical Leadership
The employee rated 10 ethical leadership item that was develop by (Brown, Treviño, and Harrison
(2005). Sample items are ‘My supervisor can be trusted and My supervisor listens to what
employees have to say.’
Employee Creativity
The nine items rated creativity items were developed by Tierney Farmer and Graen (1999).
Sample items are ‘Employee is a good source of creative ideas’ and ‘Employee suggest new ways
to achieve goals or objectives.’
Intrinsic Motivation
The five-item rated employee intrinsic motivation sample item ‘I enjoy finding solutions to
complex problems, and ‘I enjoy coming up with new ideas for products. Lawler, E. E., & Hall, D.
T. (1970).
Data Collection process
Participants responded to all items on a five‐point scale We included controls for age and gender,
which may affect performance (Hoffman, Blair, Meriac, & Woehr, 2007), The change-oriented
focus of firms motivated us to collect data from these firms. Before data collection, we contacted
the directors of human resource departments and got their approval to distribute the
questionnaire. During the face-to-face meeting, we gave them a survey letter indicating that
participation is voluntary, and responses are confidential. The lead author did not know any of
the subjects and made sure that they read the instructions and statement of confidentiality
accompanied with the questionnaire stating that ‘Please take several minutes to complete the
enclosed questionnaire. There are no rights or wrong answers to these questions, so your candor
is strongly encouraged. All responses are strictly anonymous and will be only reported in
aggregate.
The collection of data into two phases During phase 1, employees/subordinates completed a
questionnaire containing items related to ethical leadership. After 3 weeks, during phase 2,
employees/subordinates completed a questionnaire that contained items related intrinsic
motivation leaders/supervisors filled questionnaires related to employee creativity. Of the 180
questionnaires distributed, we received 130 back. The final sample included 120 questionnaires
after removing 10 questionnaires due to missing data.

Method of Analysis
To analyze the spss was used due to certain reasons, Beginning stage that why used spss Data
screening better in spss, We can automatically setup and import variables ,The opportunities for
statistical analysis are practically endless.

Table I: Demographic Characteristics

Demographic Characteristics Frequency Percent Cumulative Percent
Gender
Male 110 91.7 100
Female 10 8.3 8.3
Age
21-30 90 75 75
31-40 19 15.8 90.8
41-50 11 9.2 100
Experience
1 20 16.7 16.7
2-3 51 42.5 59.2
4-6 36 30 89.2
7-10 3 2.5 91.7
10-13 10 8.3 100
 TABLE 2
Means, Standard deviations, Correlations, and Reliabilities for main variables of interest in the
study
Variable Mean SD 1 2 3 4 5 6
1-Gender 1.91 0.27 1
2-Age 2.34 0.64 .114 1
3-Experience 2.43 1.06 -.019 .077 1
4-Ethical Leadership 3.68 0.54 -.071 .126 .178 1
5-Intrinsic Motivation 3.73 0.61 -0.06 .084 .145 .896** 1
6-Employee Creativity 3.71 0.57 .000 .056 .146 .876** .699** 1

**Correlation is significant at the level (2-tailed)

Deviant Work Behaviors (DWB)

Mr. Variable R R2 B IT t P
No.
Step-1
1 Direct effects of EL on EC .876 .768 .876 .047 19.7 .000
Step-2
2 Direct effect of EL on IM .896 .803 .896 .046 21.9 .000
3 Direct effects of IM on EC .699 .488 .699 .063 10.6 .000
Step-3
4 Mediation of IM btw EL and EC

Discussion
This examine was performed to check the purposed linkage among ethical leadership on
creativity with the mediating role of intrinsic motivation in personnel of industrial firms in
Pakistan. The modern-day study found a significant relationship among ethical leadership and
creativity. The present look at confirmed the mediating role of intrinsic motivation on the
relationship among moral leadership and creativity. Results depict that moral management
changed into associated with creativity. This end result is aligned with theoretical arguments that
moral management definitely influence the people’ attitude and conduct (Zhu, May, & Avolio
2004; Brown, Treviño, & Harrison 2005; De Hoogh & Den Hartog, 2008; Mayer et al., 2009;
Kalshoven, Den Hartog, & De Hoogh, 2011). Moreover, the findings that moral management
motive high quality impact on creativity, are consistent with the reasoning that moral
management demonstration of the values at workplace, open communique, appreciate to
personnel, equity, trustworthiness, and balanced decision inspire personnel to elevate their voice
(Brown, Treviño, & Harrison, 2005; Brown & Treviño, 2006). Therefore, personnel within the
presence of moral management, employees communicate about new and novel thoughts which
decorate their creativity inside the agency (Tu & Lu, 2013). These findings also are regular with
the findings of other researchers who discovered advantageous dating among ethical leadership
and creativity (Ma et al., 2013; Javed et al., 2016). Further the effects of the contemporary take
a look at suggests the mediation of intrinsic motivation among ethical leadership and creativity.
Employees are intrinsic motivated when they discovered consistency among the leaders’
determined and preferred conduct. Ethical chief with ethical conduct show normatively
appropriate behavior which personnel like in the excellent hobby of enterprise. Therefore,
leadership with ethical behavior is trusted by way of employees at paintings placing (van den
Akker et al., 2009; Yozgat & Meşekıran, 2016). Employees having believe in leader tend to
showcase creative conduct. This is due to the fact creativity is a risk taking conduct, wherein
employees experience danger from their leader, because inside the standardized paintings
placing, pinnacle leaders most effective recognize the confirmation of standardized norms. In this
kind of paintings placing, personnel additionally sense a fear of being rejected by using leaders
due to the fact controlling leadership sees creativity as deviant behavior at paintings setting.
Moreover, no longer all ideas assure achievement due to the fact a massive majority of the
thoughts fail (Gong, Cheung, Wang, & Huang, 2012). Therefore, earlier than displaying such
unstable conduct involving creativity, employees first see that whether or not they accept as true
with on chief, that chief will not punish them in the event that they communicate approximately
new work method, through generating new ideas. If they experience confident and believe on
the leader, then they showcase creativity behavior (Piccolo et al., 2010; Walumbwa, Mayer,
Wang, Wang, Workman, & Christensen, 2011; Hahn, Lee, & Jo, 2012). Therefore, the present
study located mediation of intrinsic motivation among ethical leadership and creativity because
employee are prompted once they agree with on their chief.

Implications
Theoretical Implication
This study contributes to the existing body of knowledge in many ways. First, it encourages and
strengthens our understanding of the influence of dynamics of ethical leadership on employee
creativity. Studies confirmed that ethical leadership increases employee creativity, but the
mechanism of trust in the leader between ethical leadership and creativity is the new
contribution of this study.

Practical Implication
The current study has several managerial implications. In their endeavor to promote creativity,
leaders should clearly articulate a moral vision that inspires employees to take on greater moral
responsibility and risk for their work at all organizational levels. This would help in fostering
employee trust, creating a supportive atmosphere, and engaging in confidence building practices,
which would then further result in greater awareness of employee creativity (Conger, 1989;
Quinn & Spreitzer, 1997). A high level of trust would ensure that ethical leaders have a positive
effect on levels of employee creativity. To compete in the market, every organization acquires
resources that help to achieve and sustain competitive advantage. Organizations in the market
face opportunities and threats and to avail of these opportunities and to av oid the threats,
organizations demand resources which enable them to deal with them effectively. All resources
have their own benefits, but human resources are the backbone of the organization that bring
creativity and innovation in the organization to avail of opportunities and to avoid threats. Social
capital theory (Nahapiet & Ghoshal, 1998) described that human resources have also economic
value at work place and their value is determined by their knowledge, skills, and abilities, and
with other characteristics. Openness to experience shows economic value which is determined
by their creative and innovative behavior to help organizations achieve competitive advantage.
The current study provides complete insight to organization and how they can enhance
personality of their employees to become imaginative, cultured, curious, original, broad-minded,
intelligent, and artistic to develop creative ideas and implement those creative ideas to bring
innovation in the organization so to achieve sustainable competitive advantage in the
marketplace. This study provides complete insight into organizations and how they are able to
meet the challenges of a changing and dynamic environment. A changing environment results in
enhanced competitive activity in the market.. The organization requires creative people who
have the ability to develop and implement creative ideas to bring innovation and to meet the
changing needs of customers, and thus foster an innovative and creative culture within the
organization. Creative minds require an open mind to explore, tolerate, and consider new and
unfamiliar ideas and experiences (McCrae & Costa, 1987). The current study will help
organization to enhance learning ,foster a creative innovative culture to cope with the change of
adynamic environment and to sustain competitive advantage in the market. Unstable and
uncertain conditions in the environment, faced by small textile firms resulted in a lack of
innovation, motivation, initiative, hardworking, dedication, devotion, carefulness, creativity,
efficiency, effectiveness, and concentration in employees. This study will help small textile firms
overcome this gap by enhancing learning, encourage a creative and innovative culture to cope
with the changes of environment, and to sustain competitive advantage in the market

Strengths, Limitation and Future Direction

The current study has a strong methodological approach. First, in order to reduce the potential
effects of common methods and single source bias, we collected data related to ethical
leadership and intrinsic motivation from employees. Moreover, responses regarding employee
creativity were taken from leaders which further reduces the effects of common method and
single source bias.
However, there are few limitations of this study that needs attention. First, we examined the
relationship between ethical leadership and creativity with mediating role of intrinsic motivation.
However, there are many other mediating and moderating factors that can play an important
role between ethical leadership and creativity. Therefore, we recommend future researchers to
study mediating and moderating variables between ethical leadership and creativity.
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