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Leader character strength and organizational outcomes: the roles of ethical climate and power distance orientation in building trust and resilience

Author

Listed:
  • Tamara Mohammad
  • Osama Khassawneh
  • Islam Bourini
  • Mohamed Noureldin Ahmed Abdelhakim

Abstract

The purpose of this paper is to determine the impact of leader character strength on employee trust and organizational resilience, along with ethical climate as a mediator and power distance orientation as a moderator. This study is based on data from 402 respondents from 23 different organizations across various sectors of the UAE which were collected using a two-wave approach to minimize the impact of common-method bias. In the first wave, employees assessed leader character strength, ethical climate, power distance, and trust; in the second wave, leaders assessed organizational resilience. Individual-, mediated-, and moderated relationships were analyzed using structural equation modeling in Mplus. Results showed that leader character strengths positively predicted trust, as well as organizational resilience. Ethical climate was found to be a partial mediator in both cases, as well as a stronger case for trust than organizational resilience. In combination with high power distance orientation, the relationship of leader character strengths and ethical climate was found to be moderated more strongly at higher levels. It is recommended that organizations incorporate character development for leaders, in both ethical climates, as this fosters trust and resilience. In organizations with high power distance leaders need to find ways of reducing distance, and visibility of ethical behavior in the organization.

Suggested Citation

  • Tamara Mohammad & Osama Khassawneh & Islam Bourini & Mohamed Noureldin Ahmed Abdelhakim, 2026. "Leader character strength and organizational outcomes: the roles of ethical climate and power distance orientation in building trust and resilience," International Studies of Management & Organization, Taylor & Francis Journals, vol. 56(3), pages 472-491, July.
    • Handle: RePEc:taf:mimoxx:v:56:y:2026:i:3:p:472-491
    DOI: 10.1080/00208825.2026.2642245
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