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Abstract

This study examines the influence of group inclusion (GI) on employee satisfaction (ES) and ethical leadership (EL). It also examines the impact of the mediating role of ES and EL on service innovation readiness (SIR). The data used in the analysis were collected from business schools in Pakistan. Five hundred and sixty questionnaires out of 1,483 questionnaires distributed were considered in the study. Further, a structural regression model and 5,000 bootstrap samples were used. The results support all the set hypotheses and show that they are inclined toward the positive effect of the first- order constructs on the second-order constructs set. The research results significantly contribute to the literature by theorizing SIR and exploring the importance of the differentiating factor GI and other mediating variables such as ES and EL; they are essential in adopting SI. In summary, this novel approach provides insights into understanding the effect of GI on SIR and explores the mediating role of GI-ES, GI, and EL on SIR. Additionally, this study analyzes the vital role of GI and underpins the mediating role of ES and EL in influencing the organizations adopting SI. The study is unique in considering the current geographic limits and exploring a new dimension to understand the impact of GI on SIR.

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