Abstract

In this study, we built and tested a theoretical model to determine how ethical leadership affects team creativity among teams composed of different characteristics. Following social learning theory and an antecedent–benefit–cost framework, we conducted analyses of multisource data from 50 team supervisors and 186 employees, which revealed an inverted U-shaped relationship between ethical leadership and team creativity. The teams exhibited more creativity when there was a moderate level of ethical leadership than when there were very low or very high levels. Moreover, from an interactional perspective, we found that team faultlines significantly moderated the curvilinear relationship between ethical leadership and team creativity such that the inverted U-shaped relationship was more significant among teams with weak team faultlines. The theoretical and practical implications of these findings are discussed.