The Impact of Perceived Ethical Leadership on Job Satisfaction in Saudi Arabian Technological Firms: The Moderating Role of Perceived Vision 2030 Initiative

Abstract

Introduction: This study aimed to explore the relationship between perceived ethical leadership and job satisfaction and the moderating role of perceived Vision 2030 initiatives in the context of Saudi Arabian technology firms, addressing the gap in empirical evidence on the topic. Past studies regarded national reforms as macro-level contextual factors; therefore, this study regarded Vision 2030 as a psychological factor at the employee level to allow for a micro-level contribution to Institutional Theory, along with Social Exchange Theory. Methodology: A survey was conducted using a structured questionnaire measured on a five-point Likert scale from 450 employees at various organisational levels working in Saudi technological companies. Data were analysed using regression analysis, and moderation was performed using the Hayes PROCESS Macro (Model 1). Results: The findings indicate that perceived ethical leadership was positively and significantly related to job satisfaction (β = 0.262, p = 0.033). Job satisfaction also showed a positive relationship with the Perceived Vision 2030 initiatives (β = 0.081, p = 0.047). Additionally, the moderating role of the interaction between perceived ethical leadership and perceived Vision 2030 initiatives was positive and significant (β = 0.072, p = 0.029). The model explained 54.6% of the variance in job satisfaction (R² = 0.546, F = 179.053, p < 0.001), although the magnitude of the moderating role was comparatively small (ΔR² = 0.0049). Conclusion: The results imply that employee job satisfaction can be improved by promoting ethical leadership and aligning organisational strategies with Vision 2030 activities. The results are especially applicable to managers and policymakers who seek to enhance workforce engagement, improve the organisational climate, and promote the sustainable development of the technological industry in Saudi Arabia.