Aslam, Hassan Danial; Căapuşneanu, So inel; Ja ed, Tasawa ; Rakos, Ileana-So ina;
Ba bu, C is ian-Ma ian
A icle
The Media ing ole o a i udes owa ds pe o ming well
be ween e hical leade ship, echnological inno a ion, and
inno a i e pe o mance
Adminis a i e Sciences
P o ided in Coope a ion wi h:
MDPI – Mul idisciplina y Digi al Publishing Ins i u e, Basel
Sugges ed Ci a ion: Aslam, Hassan Danial; Căapuşneanu, So inel; Ja ed, Tasawa ; Rakos, Ileana-
So ina; Ba bu, C is ian-Ma ian (2024) : The Media ing ole o a i udes owa ds pe o ming well
be ween e hical leade ship, echnological inno a ion, and inno a i e pe o mance, Adminis a i e
Sciences, ISSN 2076-3387, MDPI, Basel, Vol. 14, Iss. 4, pp. 1-14,
h ps://doi.o g/10.3390/admsci14040062
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Ci a ion: Aslam, Hassan Danial,
So inel Căpus
,neanu, Tasawa Ja ed,
Ileana-So ina Rakos, and
C is ian-Ma ian Ba bu. 2024. The
Media ing Role o A i udes owa ds
Pe o ming Well be ween E hical
Leade ship, Technological Inno a ion,
and Inno a i e Pe o mance.
Adminis a i e Sciences 14: 62.
h ps://doi.o g/10.3390/
admsci14040062
Recei ed: 6 Janua y 2024
Re ised: 12 Ma ch 2024
Accep ed: 16 Ma ch 2024
Published: 24 Ma ch 2024
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adminis a i e
sciences
A icle
The Media ing Role o A i udes owa ds Pe o ming Well
be ween E hical Leade ship, Technological Inno a ion, and
Inno a i e Pe o mance
Hassan Danial Aslam 1, So inel Căpus
,neanu 2,* , Tasawa Ja ed 3, Ileana-So ina Rakos 4
and C is ian-Ma ian Ba bu 5
1Ins i u e o Business, Managemen and Adminis a i e Sciences, Depa men o En ep eneu ship and
Inno a ion, The Islamia Uni e si y o Bahawalpu , Bahawalpu 63100, Pakis an; [email p o ec ed]
2Facul y o Economic Sciences, Ti u Maio escu Uni e si y, 040441 Bucha es , Romania
3Ins i u e o Business, Managemen and Adminis a i e Sciences, Depa men o Managemen and Science,
The Islamia Uni e si y o Bahawalpu , Bahawalpu 63100, Pakis an; asawa [email p o ec ed]
4Facul y o Sciences, Uni e si y o Pe osani, 332006 Pe osani, Romania; [email p o ec ed]
5
Depa men o Managemen -Ma ke ing, A i ex Uni e si y, 060754 Bucha es , Romania; [email p o ec ed]g. o
*Co espondence: so inel.capusneanu@p o .u m. o
Abs ac : The business sec o is i e wi h une hical manage ial p ac ices, such as blaming subo dina es
o o ganiza ional ailings, along wi h he exploi a ion o colleagues, a o i ism, and con lic s o
leade ship. In ligh o his, nume ous esea che s ha e endea o ed o explain he phenomenon o
e hical pe spec i es and conce ns. I is ecommended ha o ganiza ions in he SME sec o adop
e hical p ac ices in o de o achie e hei long- e m objec i es. This s udy s esses he in luence o
e hical leade ship and echnological inno a ion, pa icula ly he media ing ole o a posi i e a i ude
in encou aging good pe o mance. This s udy, which was conduc ed in he SME sec o o Malaysia
in he s a e o Selango , employed a con enience sampling echnique o da a collec ion and epo s
ha e hical leade ship, echnological inno a ion, and a i ude signi ican ly in luence pe o mance.
A media ing ole o a i ude in ela ion o echnological inno a ion and inno a i e pe o mance
is he eby epo ed, and a i ude owa ds pe o mance was ound o ha e an insigni ican e ec
on e hical leade ship and inno a i e pe o mance. This s udy con ibu es o he exis ing body o
knowledge by explaining he ole o e hical leade ship and echnological inno a ion in exp essing
and assessing he e olu iona y business p ac ices equi ed o ensu e o ganiza ional success.
Keywo ds: inno a i e pe o mance; e hical leade ship; echnological inno a ion; a i udes owa ds
pe o ming well; SME
1. In oduc ion
The di e si ied app oaches o e ec i e go e nance ha e become inc easingly p e a-
len in mode n wo king en i onmen s, which a e unde going apid changes ha d i e
compe i i eness and o ganiza ional pe o mance. As such, he e is a g ea e emphasis
on p o essional p ac ices ha con ibu e o businesses’ o ganiza ional objec i es and al-
low hem o achie e o ganiza ional excellence. The de elopmen s s emming om he
implemen a ion o unique, no el ideas gene a e possibili ies o inno a ion in e ms o
he p oduc s, se ices, p ocedu es, o p ac ices ha a e ound o be p og essi e o busi-
nesses (F ei e and Be encou 2020). E hical leade ship and in ellec ual capi al ha e been
highligh ed as impo an aspec s o inno a i e business p ac ices in he scien i ic li e a u e;
u he , he knowledge economy is obse ed o be an impo an ai o he inno a i e ini-
ia i es ha a e d i ing p og ess in he business sec o (Migdadi 2019). O ganiza ions ha e
s essed he impo ance o employee inno a i eness, which is c i ical in he compe i i e
business en i onmen o he 21s cen u y (Ghosh e al. 2017). The g owing complexi y
o he o ganiza ional en i onmen equi es ha employees emb ace inno a ion in o de
Adm. Sci. 2024,14, 62. h ps://doi.o g/10.3390/admsci14040062 h ps://www.mdpi.com/jou nal/admsci
Adm. Sci. 2024,14, 62 2 o 14
o achie e o ganiza ional objec i es. The con empo a y business en i onmen is looded
wi h inc easingly di e se cus ome demands and a ying pe o mance s anda ds due o
ongoing echnological ad ancemen s and globaliza ion (Jo dão e al. 2020).
O ganiza ions ha e emphasized ha e ec i e leade ship mus inco po a e new ech-
nologies o enhance employee pe o mance in he compe i i e global ma ke . Inno a i e
pe o mance is essen ial o he achie emen o co e compe encies. Inno a i eness used o
be an inhe en quali y, bu oday, i is a necessi y in he business wo ld and is c i ical o
an o ganiza ion’s success (Mendoza-Sil a 2021). App op ia e aining, de elopmen , and
expe ience enable indi idual employees o build upon hei s eng hs in he wo kplace
en i onmen . A business’s su i al and success depend upon bo h he e icien u iliza ion
o esou ces and he sui abili y o he aining and expe ience ha d i e i s ope a ions.
To his end, in he cu en globalized business en i onmen , schola s and p ac i ione s
emphasize he impo ance o inno a i e beha io in employees, as i is c i ical o su i al
and success. While i is impo an o conside no el ideas and eme ging p ac ices associa ed
wi h business ope a ions a he wo kplace, i is e en mo e impo an ha employees a e
encou aged o oice hei opinions on issues ha a ec hei pe o mance (Mahoney and
Ko 2015;Ali Chugh ai 2016). The cul u e o an o ganiza ion plays a i al ole in de ising
inno a i e business s a egies; in pa icula , a company’s leade ship is ins umen al o em-
ployees’ beha io , p omo ing he inno a i eness ha is cen al o he a i ude o employees
(Ja ed e al. 2019).
P e ious s udies explained he in luence o social capi al, human capi al, and e hical
leade ship on p edic ing inno a i e pe o mance. In one pape , i was epo ed ha human
capi al and social capi al a e key o p edic ing inno a i e pe o mance and ha e hical
leade ship has a signi ican impac on inno a ion, in o ming o ganiza ional success and
pe o mance (Ullah e al. 2021). Fu he e o s ha e been made o de e mine adical and
inc emen al inno a ion by e hical leade ship h ough he media ing impac o bo h aci
and explici knowledge (Lei e al. 2020). In he a o emen ioned s udy, he esea che s
inco po a ed e hical leade ship, employee c ea i i y, and knowledge sha ing o p edic o -
ganiza ional inno a ion. They also s essed he impo ance o knowledge sha ing, in insic
mo i a ion, and psychological empowe men wi h ega d o o ganiza ional inno a ion
(Sha ique e al. 2020). Howe e , he phenomenon o inno a i e beha io has ye o be de-
sc ibed in he li e a u e, indica ing ha nume ous p edic o s may ha e been o e looked. In
his s udy, we in end o de e mine he phenomenon o inno a i e pe o mance in ela ion
o leade ship and echnological inno a ion based on a i udes owa ds pe o mance.
The echnological e a and he p esence o digi al ans o ma ion ha e changed he
business landscape in e ms o ope a ions, manu ac u ing, deli e y, and managemen .
P e ious s udies ha e ocused on he echnological aspec o ma ke ing p oduc s using
social media and a i icial in elligence; howe e , he e is a lack o empi ical e idence
assessing he ole o echnology- ela ed ini ia i es in he digi al sphe e wi h ega d o
pe o mance- ela ed ou comes (Agniho i e al. 2016). Technological inno a ions such
as dis up i e echnology and no el digi al hinking now play a i al ole in business- o-
business ansac ions ia sophis ica ed IT-based applica ions. Fi ms a e s i ing o adop
a ious echnological inno a ions o enhance he scale, quali y, and alue o hei p oduc o
se ice. One such inno a ion is online in en o y managemen so wa e, which signi ican ly
enhances he e iciency and pe o mance o business ope a ions (Pagani and Pa do 2017).
Di e se leade ship s yles ha e a ac ed signi ican a en ion om esea che s as one
o he s iking an eceden s o pe o mance. An o ganiza ion’s leade ship mus be app o-
p ia ely aligned wi h he adop ion and implemen a ion o echnological ad ancemen s,
al e ing business models and in luencing employees’ beha io o ensu e a smoo h digi al
ans o ma ion. Se e al s udies ha e highligh ed he ela ionship be ween echnological
inno a ion and he success o a i m wi h he mode a ing e ec o e hical leade ship. I has
been a gued ha echnological inno a ion inc eases pe o mance s anda ds, while e hical
leade ship s eng hens he associa ion be ween echnology and success (Lin e al. 2020). In
his s udy, we in end o explo e he ela ionship be ween e hical leade ship and inno a i e
Adm. Sci. 2024,14, 62 3 o 14
pe o mance, as well as ha be ween echnological inno a ion and inno a i e pe o mance,
in addi ion o he media ing ole o a i ude owa ds pe o mance.
2. Li e a u e Re iew
The success o an o ganiza ion and he economic g ow h o a na ion a e known o
be in luenced by he le el o inno a i e ac i i ies ha ha e been ca ied ou in pu sui
o such objec i es. As such, schola s ha e emphasized he deg ee o inno a ion ha
should be aligned wi h he in oduc ion, adop ion, and implemen a ion o he echnological
ad ancemen s ha will enhance an o ganiza ion’s pe o mance (P adhan e al. 2018). In
ligh o he cu en hype ac i e business en i onmen and apidly changing business
p ac ices, inc easingly globalized ac i i ies, cons an echnological ad ancemen s, and
sho ened p oduc li e cycles, businesses mus emb ace inno a ion in o de o gain a
sus ainable compe i i e posi ion. The numbe o indi idual- and o ganiza ional-le el
ac o s in luence he inno a ion and c ea i i y o businesses, enhancing he alue o hei
p oduc s and al e ing business ope a ions h oughou he supply chain (Hughes e al.
2018). He e, we will explain he oles o e hical leade ship and echnological inno a ion
in p edic ing inno a i e pe o mance and shaping a i udes owa ds pe o mance. In
doing so, we will de e mine he media ing ole o a i ude in ela ion o e hical leade ship,
echnological inno a ion, and inno a i e pe o mance.
2.1. E hical Leade ship, Inno a i e Pe o mance, and A i ude owa ds Pe o mance
E hical conce ns a e becoming inc easingly c i ical o mode n business p ac ices. As
such, o achie e a desi able wo king en i onmen , i is necessa y o implemen a s ong
mo al amewo k. P e ious s udies ha e emphasized he impo ance o holding he leade s
o i ms and o ganiza ions o a high e hical s anda d; ailing o do so can ha e signi ican
consequences in he global business en i onmen . The e m “e hical leade ship” e e s o
a ious dialogic s yles, modes o ac ions, and beha io s de i ed om a di e se a ay o
no ms. Fu he , i has been unde s ood as he mode o conduc necessa y o p omo ing
e ec i e communica ion, he ein o cemen o social ules, and e ec i e decision making
(T e iño e al. 2014). The e hical conce n o eam leade s was ound o be in luen ial in
shaping he beha io o employees and acili a ing an e hical wo kplace en i onmen
(Wie nik and Ones 2018).
Some esea che s ha e a gued ha une hical beha io in he wo kplace akes he o m
o blaming o he s, aking ad an age o o he employees, claiming c edi o o he people’s
wo k, and displaying a o i ism, and discou aging such beha io is highly bene icial.
Schola s ha e empi ically in es iga ed he in luence o e hical leade ship on inc easing
wo k engagemen , employee well-being, and a i m’s pe o mance (Sa wa e al. 2020).
Knowledge sha ing among employees was ound o be highe in he p esence o e hical
leade ship, sugges ing he impo ance o inco po a ing e hical leade ship when assessing
pe o mance- ela ed ou comes (Saeed e al. 2022). P e ious esea ch has also ocused on
di e en leade ship s yles, including senio leade ship, execu i e leade ship, s a egic
leade ship (Lu and Yang 2010), complex leade ship (Uhl-Bien e al. 2007), ans o ma ional
leade ship (Ja ed e al. 2021), and adminis a i e leade ship (Ja ed e al. 2023). E hical
leade ship is de ined as main aining an e ec i e wo king en i onmen in acco dance wi h
e hical s anda ds ha a e ailo ed o each i m. The cu en s udy inco po a ed he e hical
pe spec i e o leade ship due o i s s iking associa ion wi h pe o mance- ela ed issues,
emphasizing u h ulness and hones y, which a e key elemen s o e hical leade ship. E hical
conduc in he wo kplace has achie ed ele a ed impo ance due o i s posi i e ou comes
and nega i e consequences. Finally, e hical leade ship e e s o showcasing no ma i ely
conduc ed beha io ia in e pe sonal ela ions and pe sonal ac ions (Al Halbusi e al. 2020).
P e iously, he li e a u e has ocused on he ela ionship be ween en ep eneu ial
leade ship and u no e in en ion, wi h he media ing e ec o a ec i e commi men and
mode a ing ole o a pe son–job i . One s udy e ealed ha a ec i e commi men media es
he ela ionship be ween en ep eneu ial leade ship and u no e in en ion. This s udy
Adm. Sci. 2024,14, 62 4 o 14
also epo s a signi ican ela ionship be ween en ep eneu ial leade ship and u no e
in en ion (Yang e al. 2019). E o s ha e been made o de e mine he mode a ing e ec s
o humane leade ship, jus ice leade ship, and mode a ing leade ship be ween cus ome
o ien a ion and compe i i e in ensi y in p edic ing he pe o mance o a i m (Feng e al.
2019). Knowledge was ound o be a no able ac o , as o ganiza ions ocus on knowledge
gene a ion o adop ion om ex e nal sou ces o ensu e inno a ion. I has been e ealed ha
he expe ience, e ec i e communica ion, and sui abili y o skills o employees con ibu e o
he inno a ion p ocess and assis in he implemen a ion o inno a i e ideas o conduc ing
business ope a ions. Inno a i e ini ia i es can only be implemen ed by es ablishing he
common goals o s akeholde s wi h he highly mo i a ed mindse necessa y o accep
such no el challenges. Employees wi h di e se backg ounds play an impo an ole in
enhancing hei abili ies o i he changing ma ke s, demons a ing a le el o us and a
wo kplace cul u e ha os e s inno a i e beha io h ough he adop ion o an app op ia e
leade ship s yle buil on s ong e hical g ounds and conce ns (Yun e al. 2020).
The e hical pe spec i e o leade ship ends o in luence employees’ skill le el, enhanc-
ing hei pe o mance h ough he e ec i e implemen a ion o inno a i e ini ia i es. In
doing so, i os e s inno a i e beha io and encou ages employees o indulge in c ea i e
ac i i ies ha lead owa ds inno a ion. The leade s in such en i onmen s a e expec ed o
ha e an eagle eye on hei changing wo king en i onmen , ma ke demand, and hei c e-
a i e p ocess, encou aging inno a i e ini ia i es o a ec he ma ke . Inno a ion has been
conside ed a co e compe ency as well, and he e hical pe spec i e is a se ious conside a ion
ha a ec s he c ea i i y o employees, esul ing in inno a i e wo k beha io (Belle lamme
and Pei z 2015).
Se ice inno a ion beha io has been examined using he media ing e ec o psy-
chological capi al wi h e hical leade ship as an independen a iable. This s udy e eals
ha e hical leade ship has a signi ican impac on psychological capi al and a signi ican
e ec on se ice inno a ion beha io . Fu he mo e, psychological capi al was ound o
signi ican ly media e he ela ionship be ween e hical leade ship and se ice inno a ion
beha io (Özsungu 2019). This s udy also ocused on he ela ionship be ween e hical
leade ship and o ganiza ional inno a ion wi h he media ing e ec o employee c ea i i y
and he in luence o knowledge sha ing, in insic mo i a ion, and psychological empowe -
men , e ealing ha e hical leade ship in luences employee c ea i i y and o ganiza ional
inno a ion. Fu he , employee c ea i i y was ound o signi ican ly media e he ela ionship
be ween e hical leade ship and o ganiza ional inno a ion (Sha ique e al. 2020).
The dimensions o inno a ion, including adical inno a ion and inc emen al inno a-
ion, we e ound o be in luenced by e hical leade ship p ac ices wi h he media ing e ec
o knowledge sha ing. One s udy a gued ha aci and explici knowledge collec i ely
media e he ela ionship be ween e hical leade ship and inno a ion (Lei e al. 2020). A
p e ious s udy explained he media ing ole o human and social capi al wi h ega d o
e hical leade ship and inno a i e pe o mance. I also epo ed a signi ican impac on
pe o mance- ela ed ou comes as a esul o app op ia e leade ship s yle and human and
social capi al (Ullah e al. 2021). The impac o e hical leade ship impac s wo ke engage-
men , employee well-being, and i m pe o mance as a esul o e hical cul u e (Sa wa
e al. 2020).
Based on he abo e li e a u e e iew, we a gue ha e hical leade ship encou ages
employees o ake ini ia i e and enhance hei pe o mance h ough inno a ion. This
pape also a gues ha app op ia e e hical leade ship shapes he a i udes o employees,
encou aging hem o imp o e hei pe o mance in pu sui o o ganiza ional pe o mance-
ela ed objec i es. The e o e, we de ised he ollowing hypo heses:
H1. E hical leade ship in luences he inno a i e pe o mance o employees in he SME sec o
o Malaysia.
Adm. Sci. 2024,14, 62 5 o 14
H2. E hical leade ship in luences he a i ude owa ds pe o ming well among employees in he
SME sec o o Malaysia.
2.2. Technological Inno a ion o Inno a i e Pe o mance and A i ude owa ds Pe o ming Well
The cu en business landscape equi es ha in ensi e echnological ad ancemen s
be ins iga ed in business p ocesses, allowing hem o adap o e e -changing economic
dynamics. This digi al ans o ma ion has aken he compe i ion o a new le el, pa icula ly
when i comes o using social media and mobile applica ions o digi ize a ious p ocesses
using a i icial in elligence. The p e ious li e a u e has emphasized hese echnological
ad ancemen s; howe e , he e is s ill a need o in es iga e he ela ionship and impac o
he echnological pe spec i e in he digi al sphe e. In a s udy ha assessed he ela ion-
ship be ween i m pe o mance and echnological inno a ion wi h he mode a ing ole o
e hical leade ship, i was a gued ha he con inued p esence o echnological inno a ion
has he po en ial o in luence o ganiza ional pe o mance, and he e hical conce ns o a
leade ship and o ganiza ional app oach in luence a i m’s pe o mance by s eng hening
he ela ionship be ween he adop ion o echnological inno a ion and he i m’s pe o -
mance (Lin e al. 2020). The esea che s a gued ha business- o-business ansac ions a e
being conduc ed ia elec onic media which enable e ec i e communica ion, making i
easie o i ms o sa is y hei o ganiza ional needs and accomplish hei objec i es. O he
s udies discussed he ole o social media in inc easing sales and sa is ying cus ome s’
needs h ough cons uc i e eedback (Nunan e al. 2018); he accep abili y o echnological
ad ancemen s a bo h nodes, including he managemen o i ms and i s employees and
use s (Lacka and Chong 2016); he ela ionship be ween s akeholde s and in e ac ions wi h
s akeholde s in ela ion o a di e se ange o issues aced by he i m (Wang e al. 2016);
and inno a ions ela ed o ma ke ing and b anding (Nguyen e al. 2015).
The li e a u e has also in es iga ed he ole o social media and mobile applica ions,
whose inc easing popula i y make hem he pe ec pla o ms o p oducing, consuming,
and exchanging a ious goods while ensu ing ha he in eg i y o in o ma ion emains
in ac . The la e is a c ucial conside a ion when ma ke ing p oduc s o a wide audience, as
disin o ma ion can ha e a signi ican nega i e impac on an o ganiza ion’s objec i es and
impede a i m’s abili y o connec wi h consume s (Tandoc e al. 2018).
Inno a ion mus be embedded in an o ganiza ion’s ope a ional p ocesses o allow i o
compe e wi h he es o he ma ke . The de elopmen and adop ion o newe echnology,
me ging o exis ing echnologies, and u iliza ion o such echnological knowledge in
a i m all all unde he umb ella o inno a ion. Fi ms mus s i e o implemen he
new echnological ad ancemen s ela ed o no el p oduc s ha mus be dis inc om
exis ing p oduc s. The adop ion o echnological inno a ion enables he de elopmen o
such compe i i e p oduc s and o e s businesses a ious bene i s ha canno be achie ed
by less echnologically ad anced i ms. Resou ces also play an impo an ole in he
de elopmen o di e se and dis inc p oduc s, as ob aining unique esou ces will help i ms
de elop p oduc s supe io o hose o hei compe i o s (Hee e al. 2019). P io esea ch has
conside ed he impac s o p oduc inno a ion, p ocess inno a ion, ma ke ing inno a ion,
and o ganiza ional inno a ion, all o which in luence a company’s pe o mance (Singh and
Hana i 2020).
The pe o mance o o ganiza ions la gely depends upon inno a i e ini ia i es h ough
he u iliza ion o echnologies, and as such, schola s ha e conduc ed ex ensi e explo a ion
o his phenomenon. Th ee ca ego ies o inno a ions desc ibed by esea che s, including
p oduc inno a ion, p ocess inno a ion, and o ganiza ional inno a ion, enable i ms o
employ no el me hods o imp o ing hei p ocesses. P e ious wo k has depic ed he
co ela ion be ween inno a i e p ac ices and he pe o mance o a i m. Fo example,
esea che s assessed he pe o mance o i ms based on hei sales pe o mance, speed
o ma ke , and new p oduc pe o mance (Hanel e al. 2021;Chindasomba cha oen e al.
2022). These ac o s we e in luenced by business inno a ion capabili ies, including ad-
Adm. Sci. 2024,14, 62 6 o 14
minis a i e inno a ion, managemen p ac ices, and o ganiza ional s uc u e, as well as
echnological inno a ions ha a ec ed lea ning capabili ies, esou ce alloca ion capabili ies,
and manu ac u ing capabili ies. Ano he s udy epo ed ha inno a ion capabili ies ha e a
signi ican impac on he pe o mance o a i m, and inno a ion capabili ies a e an essen ial
ac o ha p edic s he pe o mance o i ms (Azia i e al. 2014).
Based on he abo e li e a u e, we a gue ha echnological inno a ions a e essen ial
o o ganiza ional g ow h and sus ainabili y. We ha e es ablished ha echnological in-
no a ions in luence a i m’s pe o mance and shape employees’ a i udes and beha io s
wi h ega d o o ganiza ional goals by p o iding be e se ices. The e o e, we de i ed he
ollowing hypo heses:
H3. Technological inno a ions in luence he inno a i e pe o mance o employees in he SME
sec o o Malaysia.
H4. Technological inno a ions in luence he a i ude owa ds pe o ming well among employees in
he SME sec o o Malaysia.
2.3. The Media ing Role o A i ude owa ds Pe o mance
This s udy in ends o de e mine he media ing ole o a i ude owa ds pe o mance
in associa ion wi h exogenous and endogenous cons uc s, whe eas p io esea ch ocused
on assessing he media ing ole o e hical cul u e be ween e hical leade ship and wo k
engagemen , employee well-being, and i m pe o mance. One s udy epo ed ha an
e hical cul u e pa ially media es he ela ionship be ween e hical leade ship and wo k
engagemen , employee well-being, and i m pe o mance (Sa wa e al. 2020). Ano he
s udy endea o ed o explain he ela ionship be ween and impac o e hical leade ship on
he e hical beha io o employees, in ligh o he media ing ole o o ganiza ional jus ice
be ween dependen and independen a iables (Al Halbusi e al. 2020). Ano he esea ch
s udy assessed he media ing ole o psychological capi al be ween e hical leade ship and
se ice inno a ion beha io . Th ee di e en models o media ion exis in o ganiza ional
beha io s udies, including an indi ec impac model which indica es ha dependen
and independen a iables a e associa ed wi h a media o . The pa ial media o model
shows a di ec ela ionship be ween independen and dependen a iables in e ms o
e ec i eness, whe eas he ull media o model which showed a di ec ela ionship no
longe exis s a e being inse ed in o he media o model (Gyu Pa k e al. 2017). E o s
ha e been made o de e mine he adical inno a ion and inc emen al inno a ion ha occu
h ough he media ing e ec o aci and explici knowledge sha ing in luenced by e hical
leade ship. In o he wo ds, e hical leade ship has an indi ec e ec on inno a ion h ough
knowledge sha ing; inno a ion a he i m le el can only be ensu ed alongside e ec i e
e hical leade ship and in he p esence o knowledge-sha ing p ac ices (Lei e al. 2020).
The media ing e ec s o human capi al and social capi al ha e been assessed in e ms
o he ela ionship be ween e hical leade ship and inno a i e pe o mance. In ano he
s udy, he au ho s ound ha human and social capi al media e he ela ionship be ween
e hical leade ship and inno a i e pe o mance. In o he wo ds, in he p esence o human
and social capi al, e hical leade ship becomes signi ican ly associa ed wi h inno a i e
pe o mance, o he inno a i e pe o mance in luenced by he e hical leade ship in he
p esence o human and social capi al (Ullah e al. 2021). This esea ch e o inco po a ed he
a i udes owa ds pe o mance ha ela ed o an indi idual being s ee ed owa ds a speci ic
beha io al pa e n ha could ha e been nega i e o posi i e. I has been de e mined ha
psychological a i udes a e good p edic o s o beha io . Employees’ a i udes owa ds hei
jobs play a i al ole in unde s anding hei p o essional beha io when pu suing hei
o ganiza ion’s goals. A i ude owa ds pe o mance e e s o employees’ e alua ion o
whe he hey mee he equi emen s o hei ole (G oen e al. 2017). P e iously, esea che s
ha e ocused on he media ing e ec o h i ing a wo k in ela ion o e hical leade ship
Adm. Sci. 2024,14, 62 7 o 14
and inno a i e wo k beha io . In his s udy, howe e , a i ude owa ds pe o mance was
also assessed as a media o be ween e hical leade ship and inno a i e wo k beha io . A
s udy epo ed ha h i ing-a -wo k and a i ude owa ds pe o mance bo h signi ican ly
media e he ela ionship be ween e hical leade ship and inno a i e wo k beha io (Iqbal
e al. 2020).
Based on he s udies desc ibed abo e, we de i ed he ollowing hypo heses:
H5. A i ude owa ds pe o mance in luences he inno a i e pe o mance among employees in he
SME sec o in Malaysia.
H6. A i ude owa ds pe o mance media es he ela ionship be ween e hical leade ship and
inno a i e pe o mance in i ms in he SME sec o in Malaysia.
H7. A i ude owa ds pe o mance media es he ela ionship be ween echnological inno a ion and
inno a i e pe o mance in i ms in he SME sec o in Malaysia.
2.4. Resea ch F amewo k
Figu e 1demons a es he main a iables and hypo hesized ela ionships explo ed
in he cu en s udy. Inno a i e pe o mance is de e mined by he in luence o e hical
leade ship and echnological inno a ion acco ding o he media ing e ec o a i ude
owa ds pe o ming well.
Adm. Sci. 2024, 14, x FOR PEER REVIEW 7 o 15
ha psychological a i udes a e good p edic o s o beha io . Employees’ a i udes o-
wa ds hei jobs play a i al ole in unde s anding hei p o essional beha io when pu -
suing hei o ganiza ion’s goals. A i ude owa ds pe o mance e e s o employees’ e al-
ua ion o whe he hey mee he equi emen s o hei ole (G oen e al. 2017). P e iously,
esea che s ha e ocused on he media ing effec o h i ing a wo k in ela ion o e hical
leade ship and inno a i e wo k beha io . In his s udy, howe e , a i ude owa ds pe -
o mance was also assessed as a media o be ween e hical leade ship and inno a i e wo k
beha io . A s udy epo ed ha h i ing-a -wo k and a i ude owa ds pe o mance bo h
signi ican ly media e he ela ionship be ween e hical leade ship and inno a i e wo k be-
ha io (Iqbal e al. 2020).
Based on he s udies desc ibed abo e, we de i ed he ollowing hypo heses:
H5. A i ude owa ds pe o mance in luences he inno a i e pe o mance among employees in he
SME sec o in Malaysia.
H6. A i ude owa ds pe o mance media es he ela ionship be ween e hical leade ship and inno-
a i e pe o mance in i ms in he SME sec o in Malaysia.
H7. A i ude owa ds pe o mance media es he ela ionship be ween echnological inno a ion and
inno a i e pe o mance in i ms in he SME sec o in Malaysia.
2.4. Resea ch F amewo k
Figu e 1 demons a es he main a iables and hypo hesized ela ionships explo ed
in he cu en s udy. Inno a i e pe o mance is de e mined by he in luence o e hical
leade ship and echnological inno a ion acco ding o he media ing effec o a i ude o-
wa ds pe o ming well.
Figu e 1. Resea ch amewo k.
3. Resea ch Me hodology
In Malaysia, bo h small- and medium-sized en e p ises play i al oles in economic
and ma ke de elopmen , inc easing income and ax e enue, p o iding anspo a ion
o goods o se ices; c ea ing new employmen oppo uni ies o imp o e he economy;
educing unemploymen and po e y; mi iga ing nega i e economic scena ios, con ib-
u ing o economic empowe men ; and maximizing s akeholde s’ weal h. The Malaysian
go e nmen has ocused on a ious p og ams o en ich he na ion’s economy and o con-
ibu e o he g oss domes ic p oduc (GDP), encou aging people o in es in and es ablish
such en u es o os e en ep eneu ial ac i i ies. A highe numbe o ailu e a es o a -
ious en e p ises has been obse ed due o economic allou , and small businesses in Ma-
laysia o en ind hemsel es unable o con inue ope a ing due o a ious challenges. S a-
is ics e ealed ha 76% o s a ups emain ope a i e o se e al yea s, 47% su i e o
Figu e 1. Resea ch amewo k.
3. Resea ch Me hodology
In Malaysia, bo h small- and medium-sized en e p ises play i al oles in economic
and ma ke de elopmen , inc easing income and ax e enue, p o iding anspo a ion o
goods o se ices; c ea ing new employmen oppo uni ies o imp o e he economy; educ-
ing unemploymen and po e y; mi iga ing nega i e economic scena ios, con ibu ing o
economic empowe men ; and maximizing s akeholde s’ weal h. The Malaysian go e n-
men has ocused on a ious p og ams o en ich he na ion’s economy and o con ibu e
o he g oss domes ic p oduc (GDP), encou aging people o in es in and es ablish such
en u es o os e en ep eneu ial ac i i ies. A highe numbe o ailu e a es o a ious en-
e p ises has been obse ed due o economic allou , and small businesses in Malaysia o en
ind hemsel es unable o con inue ope a ing due o a ious challenges. S a is ics e ealed
ha 76% o s a ups emain ope a i e o se e al yea s, 47% su i e o only ou yea s, and
only 38% su i e o six yea s o longe . Fu he , 50 o 80% o small businesses ail wi hin
a sho ime ame. The SME sec o con ibu es signi ican ly o he Malaysian GDP and
expo s and also con ibu es signi ican ly o employmen a es, in addi ion o p omo ing
en ep eneu ial ac i i ies and a ac ing new in es men s, esea che s and academicians,
ade o ganiza ions, and o he ela ed agencies (Singh and Hana i 2020).
Adm. Sci. 2024,14, 62 8 o 14
This esea ch s udy is quan i a i e in na u e, as ela ionships be ween a iables a e
in ended o be examined empi ically. The e o e, con enience sampling was employed, and
he da a we e collec ed h ough ques ionnai es dis ibu ed among 209 SMEs in a ange o
sec o s and ci ies in Malaysia. The e a e app oxima ely 320,000 SMEs in Malaysia loca ed
in di e en egions o Malaysia, including Selango , Penang, Joha , Kula Lumpu , Pe ak,
Melaka, Kedah, and Pe lis, and hese businesses ope a e in a ious sec o s, including
se ices and manu ac u ing. Inno a ion has c ucial impo ance in he manu ac u ing
sec o ; he e o e, his s udy emphasized he manu ac u ing SME indus y when assess-
ing inno a i e pe o mance. I was ound ha inno a i e ini ia i es in he SME sec o
assis in achie ing op imal business pe o mance, and inno a ions ela ed o he p oduc ,
p oduc ion, b anding, p omo ion, p icing, and decision-making in luence beha io and
awa eness. Technological inno a ion and inno a i e ini ia i es ha e ma kedly imp o ed
he p oduc ion p ocess in he SME manu ac u ing sec o in Malaysia (Suk i e al. 2023).
This s udy u ilized p e iously de eloped esea ch ins umen s om di e en s udies
o assess he ela ionships be ween cons uc s. The measu emen scale o e hical leade ship
was o iginally de eloped by B own e al. (2005) bu was widely used by a ious s udies
a e being adop ed om ano he s udy (Özsungu 2019). The en i ems’ scales included he
sample i ems “my leade ensu es ha employees a e ep imanded o e hical iola ions”,
“my leade conduc s hei own li e in an e hical manne ”, and “my leade has an in e es
in hei employees and hei men al heal h”. Technological inno a ions we e assessed
based on he inclusion o “ esea ch and de elopmen ”, he capabili y o adop echnological
changes, in ellec ual p ope y igh s, and he capabili y o ob ain pa en s. The i e-i em
measu emen scale o echnological inno a ion was adop ed om a p e ious s udy (Su
2023). The dependen a iable o inno a i e pe o mance consis ed o nine s a emen s,
including “idea gene a ion”, “ideas p omo ion”, and “idea ealiza ion”, indica ing ha “ou
employees gene a e o iginal solu ions o p oblems”, “ou employees mobilize suppo o
inno a i e ideas”, and “ou employees ans o m inno a i e ideas in o use ul applica ions”.
The measu emen scale was aken om ano he esea ch pape (Khan e al. 2021). The
media ing a iable “a i ude owa ds pe o ming-well” consis ed o h ee i ems adop ed
om ano he esea ch pape (Iqbal e al. 2020). All he i ems we e assessed on a 5-poin
Like scale anging om 1 o “s ongly disag ee” o 5 o “s ongly ag ee”. La e , he
collec ed da a we e analyzed in Sma -PLS .3.3.4 so wa e
4. Da a Analysis and Discussion
This sec ion o his esea ch pape emba ks on a wo-s age analysis. The i s s age
ocuses on he eliabili y and alidi y o he cons uc s, whe eas he second s age ocuses
on assessing ela ionships, as depic ed in Figu e 1.
4.1. Measu emen Model Assessmen
The i s phase o his analysis is ela ed o he assessmen o he eliabili y and alidi y
o he a iables. The eliabili y o all cons uc s was assessed based on he alues o
C onbach’s alpha and composi e eliabili y. The C onbach’s alpha alues had o emain
highe han 0.70, whe eas he alue o CR had o be highe han 0.70 in o de o be deemed
accep ably eliable. The alidi y o he cons uc s was de e mined based on he a e age
a iance ex ac ed (AVE) and he alue had o be highe han 0.50 o achie e accep abili y
(Hai e al. 2014). Fu he , he alidi y was de e mined on he basis o disc iminan alidi y
acco ding o p e iously es ablished c i e ia (Fo nell and La cke 1981). The measu emen
model was assessed h ough he PLS-algo i hm me hod o PLS .3.3.4.
Table 1shows he eliabili y and alidi y o he cons uc s.
The abo e able demons a es he alues o eliabili y and alidi y. A C onbach’s
alpha g ea e han 0.70 was deemed accep able; a alue g ea e han 0.80 was conside ed
good eliabili y; and a alue highe han 0.90 was conside ed o be a sign o excellen
eliabili y. Simila ly, he alue o he CR and he alue o he AVE had o be highe han
