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How Ethical Leadership Supports Employee Performance: The Role of Psychological Capital and Employee Engagement

Author

Listed:
  • Thi-Trang-Nhung Nguyen

    (Faculty of Business administration, Hanoi University of Industry 298 Cau Dien Street, Bac Tu Liem District, Hanoi, Vietnam)

  • Thi-Minh-Ngoc Luu*

    (VNU University of Economics and Business, Vietnam National University, Hanoi 144 Xuan Thuy, Cau Giay, Hanoi, Vietnam)

Abstract

This research investigated the relationship between ethical leadership and employee performance using data from the employees in Vietnamese service firms. We examined four dimensions of psychological capital (efficacy, hope, resilience, and optimism), and employee engagement as mediators of the ethical leadership to two dimensions of employee performance (task performance and contextual performance) relationship. Results from 563 respondents of 73 service firms revealed that ethical leadership was positively and significantly related to task performance and contextual performance and that this relationship was mediated by four dimensions of psychological capital and employee engagement, and work experience and education level, controlling for task performance and contextual performance. We discuss implication of our findings for theory and practice.

Suggested Citation

  • Thi-Trang-Nhung Nguyen & Thi-Minh-Ngoc Luu*, 2019. "How Ethical Leadership Supports Employee Performance: The Role of Psychological Capital and Employee Engagement," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(11), pages 1637-1648, 11-2019.
    • Handle: RePEc:arp:tjssrr:2019:p:1637-1648
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