Abstract:
The purpose of this research is to investigate the influence of ethical leadership on virtual team performance in the IT sector of Punjab, Pakistan, and trust and psychological well-being mediating effect on this relationship. The nature of the study is cross-sectional and data is collected from 211 respondents in the IT industry of Punjab Pakistan, using a questionnaire survey that is administered to Virtual Team members. Data is analyzed using Smart PLS 4, specifically Partial Least Squared-Structural Equation modeling.
Our results indicate that ethical leadership has a significant positive impact on project success. Moreover, trust and psychological well-being were found to mediate the relationship between ethical leadership and virtual team performance. The findings suggest that organizations in the IT sector of Punjab, Pakistan, should focus on improving their ethical leadership to enhance virtual team performance. Additionally, organizations need to foster a positive organizational culture that supports trust and psychological well-being to maximize virtual team performance.
The study has several practical implications for organizations operating in the IT sector of Punjab, Pakistan. First, organizations need to adopt formal ethical leadership to ensure virtual team performance. Second, organizations should invest in diverse virtual teams to enhance their competitiveness in the market. Third, organizations need to be mindful of their organizational culture and its impact on virtual team performance. Finally, organizations should develop strategies to align their organizational culture with ethical leadership to optimize their virtual teams' performance. Overall, the study contributes to the literature on ethical leadership by highlighting the significance of trust and psychological well-being in achieving virtual team performance in the IT sector of Punjab, Pakistan.
