Unlocking the Ethical Leadership on Employee Loyalty and Motivation: The Mediating Role of trust in the Public Sector Leadership

Abstract

While there is a substantial quantity of research on ethical leadership in Western countries, the literature is scarce on the subject in Muslim-majority countries, particularly in Somalia. Drawing on social learning theory, this study examines the influence of ethical leadership on public servants’ employee loyalty and motivation in Somalia through the underlying mechanism of employee trust in leaders. This study utilized an online quantitative survey conducted among 279 federal government employees in Mogadishu, Somalia. The collected data were subsequently analyzed using SmartPLS 4.1.0.0, employing Structural Equation Modeling Partial Least Squares (SEM-PLS) to assess the study’s outer and inner models. The results revealed that ethical leadership directly and positively impacts public servants’ trust in leaders, employee loyalty, and employee motivation. Furthermore, the results showed that public servants’ trust in leaders positively and significantly impacts loyalty and motivation. Public servants’ trust in leaders partially mediates the association between public sector ethical leadership and public servant loyalty. Moreover, public servants’ trust in leaders partially mediates the relationship between ethical leadership and employee motivation in public sector institutions. These findings provide a clear roadmap for policymakers and administrators who seek to improve the performance and integrity of the public sector in environments susceptible to ethical challenges, empowering them with actionable insights.