It’s a knowledge centric world! Does ethical leadership promote knowledge sharing and knowledge creation? Psychological capital as mediator and shared goals as moderator

Purpose The purpose of this study is to examine the impact of ethical leadership and psychological capital on knowledge sharing and knowledge creation in organizations. It also investigates the mediating effect of psychological capital and moderating effect of shared goals in the relationship between ethical leadership and knowledge sharing and between ethical leadership and knowledge creation. Design/methodology/approach The study uses a quantitative research design wherein the survey questionnaire has been used to gather data from 700 respondents in public sector research organizations, information technology companies and central universities and colleges. Hypotheses of the study have been tested using structural equation modelling. Findings The findings unveil that ethical leadership and psychological capital have a positive impact on knowledge sharing and knowledge creation. Psychological capital mediates and shared goals moderates the relationships of ethical leadership with knowledge sharing and knowledge creation. Knowledge sharing mediates between ethical leadership and knowledge creation. Research limitations/implications The study exploits quantitative research methodology, which may be supplemented by other research methodologies by future researchers. Practical implications This study offers new insights into the sharing and creating of knowledge by employees under the influences of ethical leadership and psychological capital. It will encourage future researchers and practitioners to further explore these dimensions for a more detailed investigation and explanation at work place. This study suggests that organizational leaders should behave in an ethical manner and should emphasise on various organizational interventions to increase psychological capital and shared goals to strengthen knowledge sharing and knowledge creation. Originality/value This study is among early attempts for investigating the linkage of ethical leadership and psychological capital with knowledge sharing and knowledge creation.