The Effect of Ethical Leadership on Employee Engagement: The Mediating Role of Work Meaningfulness and Person-Organization Fit. Moderating Role of Self-Efficacy

Abstract

Ethical leadership is increasingly essential for cultivating a vibrant workplace and strengthening employee-organization relationships. Using the framework of social exchange theory, this research delves into how ethical leadership directly affects employee engagement and indirectly influences it through work meaningfulness and person-organization fit. Additionally, it examines how self-efficacy shapes the connection between employee engagement and person-organization fit. The study used a cross-sectional analysis with Structural Equation Modeling following data gathered from 279 employees across two Iranian factories. The findings highlight that employee engagement is influenced by ethical leadership, work meaningfulness, and person-organization fit. Moreover, work meaningfulness and person-organization fit mediate the positive impact of ethical leadership on employee engagement. Additionally, selfefficacy moderates the relationship between person-organization fit and employee engagement. The findings provide new perspectives for business organizations by articulating a novel mechanism in ethical leadership literature to boost employee engagement.