Principle-Centered Leadership in Organizations: Pathways to Innovation and Barriers to Implementation
Aiza Bheal M. Kitani | Teresa Lyn D. Matiwtiw | Junifer G. Felix | Jason A. Guillermo | Jose R. Balcanao
Discipline: combined, general or negotiated studies
Abstract:
As organizations increasingly rely on innovation, understanding how Principle-Centered
Leadership (PCL) fosters Employee Innovative Work Behavior (IWB) is essential. This study addresses this
gap by synthesizing research on the key mediators—psychological safety and organizational trust—and the
practical implementation challenges. A systematic literature review was conducted using the PRISMA
framework, analyzing 52 eligible studies. Findings show the PCL-IWB link is rarely direct; it is primarily
mediated by psychological safety and organizational trust. The key challenges identified include the
difficulty of translating abstract PCL concepts into concrete measurements and the subjective perception of
these principles across different corporate cultures. The practical implication is that organizations should
invest in leadership development that goes beyond theory. Training must also equip leaders with tangible
tools to intentionally build psychological safety and trust deliberately, thereby creating the environment
required to unlock employee innovation.
References:
- Alateeg, S., & Alhammadi, A. (2024). The role of employee engagement towards innovative work behavior mediated by leadership in small businesses. International Journal of Advanced and Applied Sciences, 11(2), 145. https://doi.org/10.21833/ijaas.2024.02.016
- Bento, A., Sariwulan, T., & Nikensari, I. (2024). Linking ethical leadership to innovative performance: The role of intellectual capital in BUMDes tourism sector in Indonesia. International Journal of Human Capital Management, 3(1), 22-38.
- Bao, Y. (2024). A dual mediation model of the association between principal inclusive leadership and teacher innovative behavior. Scientific Report, 14(1). https://doi.org/10.1038/s41598-024-63332-0
- Bedenkov, A., Galimov, A., & Muravyev, A. (2021). The 7+ habits of highly effective medical directors. Pharmaceutical Medicine. https://doi.org/10.1007/s40290-021-00403-x
- Benlahcene, A., Arar, Z., & Alkhawaldeh, M. A. (2022). How poor leadership skills elicit unethical behavior: Evidence from public organizations. Journal of Public Administration and Governance, 12(2), 409–425.
- Brahm, N., Kissack, J., Grace, S., & Lundquist, L. (2012). Application of leadership strategies secondary to a book review. Journal of Curriculum and Teaching, 2(1). Sciedu Press. https://doi.org/10.5430/jct.v2n1p27
- Brown, M. E., & Treviño, L. K. (2006). Ethical leadership: A review and future directions. The Leadership Quarterly, 17(6), 595–616. https://doi.org/10.1016/j.leaqua.2006.10.004
- Bunkaewsuk, P., Uppathampracha, R., Peng, B., & Anwar, M. (2024). Unpacking the relationship between ethical leadership and innovative work behavior: A moderated mediation model. Banks and Bank Systems, 19(2), 184–198. https://doi.org/10.21511/bbs.19(2).2024.15
- Dagogo, T., & Barasin, A. (2020). Organizational trustworthiness and employee innovative work behaviour. Journal of Strategic Management, 5(1), 25. https://doi.org/10.47672/jsm.456
- Guo, Y., Jin, J., & Yim, S.-H. (2022). Impact of inclusive leadership on innovative work behavior: The mediating role of job crafting. Administrative Sciences, 13(1), 4. https://doi.org/10.3390/admsci13010004
- Gupta, S., Nawaz, N., Tripathi, A., Chaudhry, S. A., & Agrawal, K. (2022). Impact of inclusive leadership on innovation performance during the Coronavirus disease 2019 outbreak: Mediating role of employee innovation behavior and moderating role of psychological empowerment. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.811330
- Hughes, D. J., Lee, A., Tian, A. W., Newman, A., & Legood, A. (2018). Leadership, creativity, and innovation: A critical review and practical recommendations. The Leadership Quarterly, 29(5), 549. Elsevier BV. https://doi.org/10.1016/j.leaqua.2018.03.001
- Javed, B., Naqvi, S. M. M. R., Khan, A. K., Arjoon, S., & Tayyeb, H. H. (2017). Impact of inclusive leadership on innovative work behavior: The role of psychological safety. Journal of Management & Organization, 25(1), 117. https://doi.org/10.1017/jmo.2017.3
- Li, T., & Tang, N. (2022). Inclusive leadership and innovative performance: A multi-level mediation model of psychological safety. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.934831
- Liehr, J., & Hauff, S. (2024). Promoting employees’ innovative work behavior through innovation-specific leader behavior: An AMO-approach. Journal of Management & Organization, 1. https://doi.org/10.1017/jmo.2024.57
- Liu, Q., Zhang, Q., & Huang, J. (2023). The influence of ethical leadership and team learning on team performance in software development projects. Frontiers in Psychology, 14, 1040000.
- Liu, X., Huang, Y., Kim, J., & Na, S. (2023). How ethical leadership cultivate innovative work behaviors in employees? Psychological safety, work engagement, and openness to experience. Sustainability, 15(4), 3452. https://doi.org/10.3390/su15043452
- Lythreatis, S., El-Kassar, A.-N., Smart, P., & Ferraris, A. (2022). Participative leadership, ethical climate, and responsible innovation perceptions: Evidence from South Korea. Asia Pacific Journal of Management, 41(3), 1285. https://doi.org/10.1007/s10490-022-09856-3
- Meriweather, L. (2024). Leadership and innovation: A framework for organizational change through servant leadership constructs. Regent Research Roundtables. Pp. 322–369. https://tinyurl.com/2b27tpcb
- Murcio, R., & Scalzo, G. (2021). Person-centered leadership: The practical idea as a dynamic principle for ethical leadership. Frontiers in Psychology, 12, 708849. https://doi.org/10.3389/fpsyg.2021.708849
- Obuba, M. O. (2023). Evaluating the moral components of authentic leadership on employees' productivity: A literature review. Open Journal of Leadership, 12(1), 89-115. https://doi.org/10.4236/ojl.2023.121007
- Oshame, D., & Maureen, O. E. (2023). Critical analysis of four leadership theories and principles. World Journal of Advanced Research and Reviews, 17(1), 1387. https://doi.org/10.30574/wjarr.2023.17.1.0187
- Pangayom, A. I. T., & Kusmaningtyas, A. (2023). Ethical leadership and authentic leadership for improving innovative work behavior. International Journal of Science and Research Archive, 9(1), 679. https://doi.org/10.30574/ijsra.2023.9.1.0509
- Qi, L., Liu, B., Wei, X., & Hu, Y. (2019). Impact of inclusive leadership on employee innovative behavior: Perceived organizational support as a mediator. PLoS ONE, 14(2). https://doi.org/10.1371/journal.pone.0212091
- Rahimizhian, S., & Irani, F. (2021). Investigating the antecedents of innovative behaviors in the hotel industry of Turkey. Tourism & Management Studies, 17(4), 45. https://doi.org/10.18089/tms.2021.170404
- Riza, M. F., Hutahayan, B., & Chong, H. (2025). Fostering high-performing organizations in higher education: The effect of participative leadership, organizational culture, and innovation on organizational performance and commitment. Cogent Education, 12(1). https://doi.org/10.1080/2331186x.2024.2448884
- Saleem, A., Bhutta, M. K. S., Abrar, M., Bari, M. W., & Bashir, M. (2024). Leader’s ethical behavior: A precursor to employees’ well-being through emotion management. Acta Psychologica, 249, 104453. https://doi.org/10.1016/j.actpsy.2024.104453
- Saleem, F., Zhang, Y., & Ullah, H. (2024). Ethical leadership and innovative behavior: Mediating role of voice behavior and moderated mediation role of psychological safety. Sustainability, 14(9), 5125. https://doi.org/10.3390/su14095125
- Sharma, L., Agarwal, P., Joshi, B. P., Kumar, N., & Tiwari, S. (2023). A study of the impact of inclusive leadership on innovative behaviors and diversity at the workplace. Environment and Social Psychology, 9(1). https://doi.org/10.54517/esp.v9i1.1721
- Shiundu, T. W. (2024). Ethical leadership and its implications on decision-making in organizations: A literature review. Journal of Human Resource & Leadership, 8(1), 59–67. https://doi.org/10.53819/81018102t30131
- Slåtten, T., Mutonyi, B. R., & Lien, G. (2020). The impact of individual creativity, psychological capital, and leadership autonomy support on hospital employees’ innovative behaviour. BMC Health Services Research, 20(1). https://doi.org/10.1186/s12913-020-05954-4
- Usman, M., & Hameed, W. U. (2017). Corruption, fast or slow? Ethical leadership interacts with Machiavellianism to influence intuitive thinking and corruption. Frontiers in Psychology, 11, 578419.
- Wang, H., Chen, M., & Li, X. (2021). Moderating multiple mediation models of the impact of inclusive leadership on employee innovative behavior. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.666477
- Zhu, J., Zhi, W., & Fang, Y. (2025). Ethical leadership, organizational learning, and corporate ESG performance: A moderated mediation model. International Review of Economics & Finance, 98(C), 103966. https://doi.org/10.1016/j.iref.2025.103966
Full Text:
Note: Kindly Login or Register to gain access to this article.
ISSN 2984-8385 (Online)
ISSN 2984-8288 (Print)