Abstract

This research investigates the role of Ethical Leadership (EL) in affecting Organizational Efficiency (OE) among healthcare professionals working in the Kingdom of Saudi Arabia (KSA). Additionally, Perceived Organizational Support (POS) was examined as playing a mediating role. Guided by EL Theory and social exchange perspectives, the study aimed to address a theoretical gap. It extended the outcomes of EL beyond attitudinal variables to include operational efficiency. It is a serious issue in healthcare settings. A structured questionnaire was administered to healthcare professionals in more than one hospital. There were 368 valid replies that were subjected to analysis. EL, POS, and OE were assessed using a standardized, proven scale. The study employed Structural Equation Modeling (SEM) as the analysis technique. This approach allowed for the examination of direct, indirect, and mediating relationships, with bootstrapping applied to ensure the robustness of the results. The findings revealed that EL positively influenced both OE and POS. POS, in turn, markedly increased efficiency and partly moderated the association between EL and OE. These findings validate that EL enhances efficiency directly by encouraging principled behavior and lucidity. It also enhances efficiency by developing supportive organizational climates. This study contributes theoretically by linking EL to efficiency outcomes and highlighting POS as a key mediating factor. Practically, the findings suggest that healthcare organizations can enhance efficiency by cultivating ethical leaders and institutionalizing supportive practices.