How does ethical leadership influence work engagement in project-based organizations? A sensemaking perspective

Purpose Project-based organizations (PBOs) face challenges to enhance employee work engagement because of dynamic and constant role configuration. Accordingly, this study aims to explore how ethical leadership enhances employee work engagement from a sensemaking perspective. Design/methodology/approach This study used a questionnaire-based quantitative research design to collect data from 194 full-time employees in PBOs. The data were analyzed via partial least squares-structural equation modeling (PLS-SEM) technique to test hypotheses. Findings The findings show a positive relationship between ethical leadership and work engagement. Additionally, the relationship between ethical leadership and work engagement is mediated by two sensemaking mechanisms, i.e. goal commitment and prosocial. Originality/value This study deepens the understanding of how ethical leadership enhances work engagement in PBOs by providing two sensemaking mechanisms. By exploring the sensemaking process through which ethical leaders help employees construct identity, the findings contribute to the current literature on how ethical leadership enhances work engagement in PBOs.