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The purpose of this paper is to examine the effect of team learning processes (information acquisition, information processing and information storage and retrieval) on team performance in software development projects and to assess the effect of ethical leadership and its influence on these processes.

The authors examined 354 software development project teams in Thailand. A quantitative study was conducted through a Web-based survey, with structural equation modelling used to test the hypotheses.

The results of this study revealed that ethical leadership is positively correlated with the team learning processes of information acquisition, information processing and information storage and retrieval. However, only information processing and information storage and retrieval are positively related to team performance. The results indicate that ethical leadership has a positive direct effect on team performance. The results also show that the positive relationship between ethical leadership and team performance is partially mediated by team learning processes, namely, information processing and information storage and retrieval.

This study highlights the importance of ethical leadership and guides managers towards considering the characteristics of both ethical leadership and team learning processes for enhancing team performance in software development projects.

This is the first study to the best of authors’ knowledge to examine the role of team learning processes in mediating the relationship between ethical leadership and team performance, particularly concerning software development projects. The present research contributes to the literature on team performance management, emphasising the manner in which ethical leadership can result in team learning and team performance. The findings of this study can be used to encourage organisations to develop ethical leadership behaviours and team learning processes in software development projects.