Participative leadership, ethical climate and responsible innovation perceptions: evidence from South Korea

This study explores a novel process linking participative leadership (PL) to responsible innovation (RI) perceptions through ethical climate. It also investigates the moderating role of managerial discretion in this process. Two-wave survey data were collected from employees working for technology firms in South Korea. Findings show that the link between PL and RI perceptions is mediated by ethical climate and that the relationship between ethical climate and RI as well as the indirect relationship between PL and RI are moderated by managerial discretion. This study expands the theoretical research perspective on consequences and mechanisms of PL, uncovers a new driver of ethical climate, expands research on the outcomes of ethical work climates, discovers new antecedents of RI perceptions, and enriches the RI literature by exploring mechanisms and boundary conditions in which RI perceptions are formed within organizations in Asia Pacific, specifically South Korea. This study provides a good approach for managers in Asian countries to follow if they wish to establish positive perceptions of an ethical climate and RI among their employees that are important to achieve organizational success.