Unveiling the power of ethical leadership: Improving employee performance through promoting employees wellbeing in the tourism sector

Abstract

This study is about the influence of ethical leadership in both employees wellbeing and employee performance in Egypt’s tourism industry. Besides, it examines the indirect effect of ethical leadership on performance through its influence on the well-being of employees. The research was based on a quantitative research method and the surveys were self-administered, distributed and collected from a random sample of the employees of the Tourism companies. Analysis of 515 valid responses using structural equation modeling (SEM) unveiled several key findings: Ethical leadership is the main reason why both employee well-being and performance are significantly increased, and the fact that employee well-being is also the main reason for the improvement of performance. In addition, the employee well-being plays the role of the bridge between the ethical leadership and the performance. These insights are of great help for the decision-makers in the crafting of the effective leadership strategies that will lead to the creation of the thriving and high-performed work environments in Egyptian tourism sector.