IMPACT OF EMPLOYEE BMPOWBRMENIT OI{ COMPETITIVE ADVANTAGE: MEDIATING ROLE OF ET*TICAL LEADERSHIP

Abstract

The current study aimed at examining the impact of Employee empowerment on reaching better level of competitive advantage through the mediating influence of ethical leadership. In this research study, there are independent variable (Employee Empowerment), depend variable (Competitive Advantage) and mediating variable (Ethical Leadership). Dimensions of competitive advantage were employed including quality, responsiveness, innovation and efficiency. Quantitative approach was adopted in order to raze main aim of study. Convenience sample method used to make the sampling frame of the study and the collected data was analyzed by using descriptive statistics, correlation, regression analyses. A questionnaire was employed as to gather data from (120) individuals within Sri Lankan selected apparel companies. The findings indicate that there is good reliability and a high level of employee empowerment, competitive advantage and ethical leadership. Results if study indicated that the main aim was realized and ethical leadership mediates the relationship between employee empowerment and competitive advantage. Also, study was able to highlight that ethical leadership influence empowerment in away that leads to better efficiency and service quality, launching from leaderships' role in increasing awareness of service quality importance in addition to leading employees towards being more creative and innovative. Study recommended encouraging workers to submit proposals that have an impact on developing their skills and helping to expand their field of empowerment compared to the previous stage, and giving workers who have proven ability and skill the opportunity to participate in decision-making, which enhances their skills, and paves the way for them to develop further in the field of their empoweffnent at a later time. The result indicated that partially mediation influence of ethical leadership in the relationship between employee empowerment and competitive advantage. As a result of this study, managers of apparel companies must give their attention for combination of employee empoweffnent and ethical leadership to increase competitive advantage. As a result of this study, this understanding may be helpful for all the interesting parties take necessary action in order to increase the firm's performance.