Do Islamic work ethics matter? Impact of aversive leadership on employees’ emotional and psychological health through the lens of conservation of resource theory

Aversive leadership remains a relatively underexplored area in organizational behavior. This study advances the field by identifying emotional exhaustion as a key mechanism linking aversive leadership to employees’ psychological health outcomes, including psychological well-being, psychological strain, and psychological detachment. It also examines the role of Islamic work ethics (IWE) as a moderator in the relationship between aversive leadership and emotional exhaustion. Supported by conservation of resource (COR) theory, which posits that stressful workplace situations, such as aversive leadership, lead to resource depletion resulting in emotional exhaustion and poor psychological health, this study finds that individuals with strong personal resources, such as IWE, are better equipped to cope with these negative outcomes. Data were collected from 260 employees in service sector organizations of Pakistan using self-administrated questionnaires. The results supported direct and indirect effects, as well as the moderating role of IWE. This study provides valuable insights for policymakers in addressing the negative impacts of aversive leadership and offers organizations guidance on selecting and nurturing supportive and positive leaders. Such leaders can foster a healthier and more productive work environment.