Linking ethical leadership and HR systems to innovation: a strategic framework for knowledge-intensive firms

Abstract

This article aims to examine how ethical leadership shapes innovative work behavior (IWB) in knowledge-intensive software development environments by positioning perceived human resource management (HRM) practices and knowledge management (KM) processes as dual organizational mechanisms. Grounded in social learning theory and the ability–motivation–opportunity (AMO) framework, an empirical model was tested using survey data from 717 software professionals in Türkiye. Data were analyzed using structural equation modeling and Hayes’ PROCESS macro. Ethical leadership significantly enhances IWB both directly and indirectly. Perceived HRM fairness and developmental support strongly boost KM processes, establishing a sequential pathway through which ethical leadership drives employee-led innovation. This study bridges leadership and operational innovation by demonstrating that ethical leadership acts not only as a relational trust builder, but also as a structural enabler that activates human resource and knowledge capabilities.