The Mediating Role of Psychological Ownership Between Ethical Leadership and Job Satisfaction Among Employees in Pakistan

Abstract

This study investigated the mediating role of psychological ownership in the relationship between ethical leadership and job satisfaction among employees in Pakistan. A sample of 273 full-time employees aged 19–40, each with at least one year of organizational tenure, was selected through a purposive sampling technique. Using a quantitative, cross-sectional correlational design, the study utilized three instruments to measure the variables: the Ethical Leadership Scale, the Psychological Ownership Scale, and the Minnesota Satisfaction Questionnaire. The study strictly followed APA 7th edition ethical guidelines. IBM SPSS Version 26 was used for data analysis, including Pearson product-moment correlation and mediation analyses via Hayes’ Process Macro 4.2 (Model 4). Results revealed significant positive correlations among ethical leadership, psychological ownership, and job satisfaction. Mediation analysis further confirmed that psychological ownership partially mediated the relationship between ethical leadership and job satisfaction. These findings suggest that ethical leadership not only directly enhances job satisfaction but also indirectly fosters it by strengthening employees’ sense of ownership. Practically, organizations should promote ethical leadership practices to cultivate psychological ownership, thereby improving job satisfaction and overall employee well-being.