The impact of ethical leadership on organizational identity in digital startups: does employee voice matter?

Abstract

Ethical leadership can lead to preparing the ground for employee voice, highlighting employees’ creativity, and encouraging knowledge-sharing behavior in the organization. Thus, this study examines the impact of ethical leadership on organizational identity with the mediating role of employee voice in digital startups. However, previous studies investigating the relationship between ethical leadership and organizational identity disregarded the intervening role of employee voice in this relationship. A cross-sectional design using a sample of 137 managers of digital startups in science parks. Through the PLS3 software, the results show that employees tend to discuss their work-related opinions and concerns more often if they consider their leaders trustworthy, and this can lead to competitive advantage and quick responses to environmental crises. According to the findings of this study, ethical leadership can prepare the ground for employee voice, highlight employees’ creativity, and encourage knowledge-sharing behavior in the organization. Hence, we suggest that leaders demonstrate personal integrity, openly receive employees’ ideas and recommendations, treat employees impartially, and attempt to maximize the benefits to their employees.