“The Role of Respectful Leadership in Fostering Employee Innovation: A Mediation Analysis of Knowledge Sharing and Ethical Climate”

Abstract

The following thesis explores the impact of Respectful Leadership (RL) on employees’ Innovative Work Behaviour (IWB), with a particular focus on the mediating role of Knowledge Sharing (KS) and Ethical Climate (EC). Grounded on existing literature and empirical findings, the study addresses a gap in the literature by investigating the role of this leadership style, rooted in dignity, fairness, and interpersonal respect, in fostering innovation at the employees’ level. For the empirical study, a quantitative approach was employed. Through a survey, a heterogeneous sample of 161 professionals was reached to gain insights into their perceptions of the variables under analysis. To measure the main constructs, validated scales were used to capture employees’ perceptions, and regression-based analyses (including Hayes’ PROCESS Model 4) were conducted to test direct and indirect effects. Objective indicators of organisational innovation (e.g., R&D intensity, patents) were also analysed to conduct an exploratory analysis. The findings reveal that RL significantly enhances KS and EC, while only KS shows a statistically significant mediating effect on IWB. EC, despite being positively associated with both RL and IWB in simple regressions, does not play a mediator role in the tested model. Additionally, RL, KS, and EC show no significant correlation with macro-level innovation indicators; however, this result is likely attributable to the limited statistical power of the analysis, rather than indicating a genuine disconnect between individual behaviours and organisational innovation outcomes. This research contributes theoretically by positioning RL as a strategic enabler of innovation and empirically by validating a mediation framework linking leadership, climate, and employee behaviour. Methodologically, it integrates subjective and objective measures, adds methodological value to current research models and offers practical insights for organisations seeking to promote innovation through relational leadership practices.