Enhancing employee creativity: The role of ethical and transformational leadership in driving innovation and organizational citizenship in Malaysia’s private universities

Abstract

This research aims to examine the influence of ethical and transformational leadership on employee creativity. Additionally, it investigates whether organizational citizenship behavior (OCB) serves as a mediating factor in the relationship between these leadership styles and employee creativity. Given the increasing importance of fostering innovation within organizations, understanding these relationships can provide valuable insights for leadership development and organizational effectiveness. The study employed a quantitative research methodology, utilizing a sample of 275 employees from Malaysian private higher education institutions (PHEIs). Data collection was conducted through structured questionnaires measuring leadership styles, OCB, and employee creativity. To test the proposed hypotheses and derive conclusions, the collected data was analyzed using the partial least squares technique (PLS-SEM), a robust method for examining complex relationships between multiple variables. The findings indicate that OCB has a significant positive impact on employee creativity. Ethical leadership positively influences both OCB and employee creativity, highlighting the role of moral leadership in fostering a conducive work environment. Similarly, transformational leadership was found to have a strong and positive effect on OCB and employee creativity, emphasizing the importance of visionary and inspirational leadership in enhancing workplace innovation. Furthermore, the results confirm that OCB serves as a crucial mediating variable between both ethical and transformational leadership and employee creativity. The study underscores the importance of ethical and transformational leadership in promoting employee creativity, with OCB playing a mediating role in this relationship. Leaders who exhibit ethical behavior and transformational qualities contribute to higher levels of OCB, which in turn enhances creativity among employees. This reinforces the notion that leadership styles significantly impact employee innovation through behavioral and psychological mechanisms. Organizations, particularly within the higher education sector, should prioritize leadership development programs that emphasize ethical and transformational leadership qualities. Encouraging OCB among employees can further enhance creative outcomes, leading to improved institutional performance and competitiveness. By fostering a supportive and values-driven work environment, leaders can effectively cultivate a culture of creativity and innovation, ultimately contributing to organizational success in dynamic and knowledge-intensive industries.