Fostering Innovative Work Behavior: Ethical Leadership, Psychological Safety, and Proactive Personality

Abstract

Innovation is vital for organizational success, driving socioeconomic change through new products, services, and business models. Employees, as key drivers of innovation, are encouraged to engage in innovative work behavior (IWB), which involves generating and implementing novel ideas to maintain a sustainable competitive advantage. The study explores the critical role of employee creativity and the factors influencing IWB, particularly in academic settings. Researchers argue that ethical leadership (EL) fosters a supportive environment that enhances IWB by valuing employee rights and dignity, thereby increasing productivity and innovation. EL's effectiveness, however, may vary based on contextual factors such as individual proactive personality, which influences how employees respond to leadership. Higher education institutions, facing globalization challenges, must promote IWB among academic staff to adapt to dynamic changes. This involves adopting new technologies, teaching methods and creating innovative research projects. Social exchange theory, social learning theory, and substitutes for leadership theory provide frameworks for understanding how EL impacts IWB. EL can enhance psychological safety, encouraging risk-taking and innovation, while proactive personality traits can substitute for leadership influence, driving innovation independently. This study contributes to the EL-IWB literature by examining the interplay of EL, psychological safety, and proactive personality in fostering IWB in academic settings.