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This study examines the link between ethical leadership and innovative work behavior. Also, drawing on the substitute for leadership theory, this study investigates the role of a follower's proactive personality in the relationship between ethical leadership and innovative work behavior (IWB). Similarly, this study further explores the role of psychological safety in this relationship.

The data for this study were collected from software development companies based in Islamabad, Pakistan. A total of 240 employees and their immediate supervisors were asked to participate in this study. Processes Macro and Amos were used to assess study hypotheses.

Using data from software companies in Pakistan, this study found that ethical leadership can be effective to enhance IWB in followers whose proactive personality is low, while this effect is limited in high proactive individuals. Furthermore, psychological safety mediates the main effect of ethical leadership on IWB as well as the interactive effect between ethical leadership and follower's proactive personality on IWB.

This study is among the first to investigate the moderating role of employees' proactive personality in the relationship between ethical leadership and followers' IWB. Secondly, draws on the substitute for leadership perspective, this study explains that how the role of ethical leadership can be less effective for high proactive individuals or how individual characteristics can substitute leadership behavior. Thirdly, this study deepens our understanding of the mechanisms linking ethical leadership to IWB by exploring the role of psychological safety as a mediator. Finally, our research is based on data collected from Pakistan might also add some new insights to the existing west-dominated literature.