The Role of Ethical Leadership in Managing Occupational Stress to Promote Innovative Work Behaviour: A Cross-Cultural Management Perspective

Abstract

This study examines the role of ethical leadership in managing occupational stress to engender innovative work behaviour (IWB) in cargo logistic SMEs in a contrasting cross-cultural management context of Canada and Pakistan. We draw on Trait Activation Theory to develop the conceptual and theoretical framework of the study. Using connections and a networking approach, a proportionate equal sample of nine SMEs were selected for the study. Analysis of the data from the semi-structured Skype and face-to-face interviews with 38 supervisors and 97 employees showed that ethical leadership plays a vital role in reducing occupational stress and increasing employees’ IWB in both countries. Employees in both countries perceiving ethical leadership exhibit more creative-constructive behaviour. The results further demonstrate that males relative to females in both countries have a higher tendency of exhibiting risk-taking behaviour and IWB, resulting from leaders’ support. Similarly, males have higher tendency of challenging the prevailing “status quo” within the organisations than females. Generally, the Pakistani workforce scored higher in contrast to the Canadian workforce in demonstrating IWB due to ethical leadership support, despite higher perception of occupational stress. Cross-cultural management implications are duly outlined.