Building Bridges of Knowledge: The Role of Ethical Leadership in Fostering Knowledge-Sharing Intention through Affective Trust and Psychological Empowerment

Abstract

This study examines the influence of Ethical Leadership (EL) on Knowledge-Sharing Intention (KSI) through the mediating role of Affective Trust (AT) and the moderating role of Psychological Empowerment (PE) within the FMCG retail sector in Pakistan. Data was collected from 350 employees and analyzed using a quantitative research approach through Structural Equation Modeling (SEM) via SmartPLS4. The results confirmed significant positive relationships: EL was found to enhance KSI directly (β = 0.339, p < 0.001) and indirectly through AT (β = 0.103, p < 0.001). AT also positively influenced KSI (β = 0.273, p < 0.001) and mediated the effects of PE on KSI (β = 0.066, p < 0.001). The measurement model was evaluated using Confirmatory Factor Analysis (CFA) to establish construct validity and reliability. Path analysis confirmed significant direct and indirect effects, indicating that Ethical Leadership positively influences Knowledge-Sharing Intention through enhanced Affective Trust and Psychological Empowerment. The findings reveal that PE strengthens the impact of EL on AT, while AT serves as a vital mediator, reinforcing the connection between ethical leadership and knowledge-sharing behaviors. These insights highlight the critical role of ethical leadership and employee empowerment in shaping a collaborative, trust-driven, and innovative organizational environment.