The job demands-resources (JD-R) model and the motivational pathway

The JD-R model, introduced by Demerouti et al. (Reference Demerouti, Bakker, Nachreiner and Schaufeli2001), has been widely used to explain employees’ work engagement (Kwon & Kim, Reference Kwon and Kim2020). This model divides job characteristics into job demands and job resources. Job demands, such as workload and time pressure, often require employees’ sustained physical and psychological efforts (Bakker & Demerouti, Reference Bakker and Demerouti2007). In contrast, job resources, such as job autonomy and social support, help employees to reduce job demands and achieve work goals (Bakker & Demerouti, Reference Bakker and Demerouti2007). Based on this distinction, the JD-R model shows two processes: an impairment process where excessive job demands lead to disengagement, and a motivational process, where job resources enhance motivation and engagement (Crawford et al., Reference Crawford, LePine and Rich2010; Schaufeli & Bakker, Reference Schaufeli and Bakker2004).

This study focuses on the motivational pathway of the JD-R model. This is because nonprofit employees often work with limited resources but high demands, and their work engagement relies heavily on job resources (Lee, Reference Lee2016; Leete, Reference Leete2000). Existing literature has discussed the influence of various job resources, such as leadership styles (e.g., transformational and servant leadership), job autonomy, and participatory HR practices, on employees’ engagement in nonprofit organizations (Akingbola & Van den Berg, Reference Akingbola and Van Den Berg2019; Park et al., Reference Park, Kim, Park and Lim2018; Selander, Reference Selander2015). Considering the unique mission-driven environment, research has also explored ideological resources (e.g., value congruence and public service motivation) as antecedents of work engagement in nonprofits (Mer et al., Reference Mer, Virdi and Sengupta2023; Selander, Reference Selander2015). Based on the motivational pathway of the JD-R model, this study considers ethical leadership as a job resource and explores how it activates nonprofit employees’ ideological resources, which in turn increases work engagement.

Ethical leadership and work engagement

Work engagement refers to the degree to which employees are involved in and enthusiastic about their work, both physically and mentally (Kahn, Reference Kahn1990; Schaufeli & Bakker, Reference Schaufeli and Bakker2004). It is a positive work state characterized by employees’ high energy and strong commitment, and can predict positive job outcomes (Borst et al., Reference Borst, Kruyen, Lako and de Vries2020). In nonprofit organizations, employees’ work engagement is even more critical due to limited monetary incentives and heavy reliance on their intrinsic motivation to deliver social value (Park & Word, Reference Park and Word2012). They tend to commit to meaningful work and expect that what they do aligns with their personal values (Word & Park, Reference Word and Park2015).

Among those organizational factors that might influence employees’ work engagement, leadership plays a central role, especially leadership styles that emphasize ethical and moral dimensions, which are important in mission-driven settings. Ethical leadership, in particular, has received increasing scholarly attention (Constandt & Willem, Reference Constandt and Willem2019).

The concept of ethical leadership was introduced by Treviño et al. (Reference Treviño, Hartman and Brown2000) with the background of growing academic concern with addressing unethical conduct in the business sector. They suggested that ethical leaders are moral persons and at the same time act as moral managers committed to fostering an ethical work environment. Brown et al. (Reference Brown, Treviño and Harrison2005, p. 120) defined ethical leadership as “the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement, and decision-making.” Unlike other ethically oriented leadership styles, such as servant leadership, focusing on the growth and well-being of followers (Liden et al., Reference Liden, Wayne, Zhao and Henderson2008), and authentic leadership reflecting leaders’ self-awareness (Walumbwa et al., Reference Walumbwa, Avolio, Gardner, Wernsing and Peterson2008), ethical leadership emphasizes leaders’ role modeling and active moral management (Brown et al., Reference Brown, Treviño and Harrison2005).

While many studies discuss the role of ethical leadership in business organizations, promoting ethical leadership practices is uniquely salient for nonprofit organizations. The nonprofit work contexts present a different situation for leaders to make ethical decisions and lead by role modeling (Heres & Lasthuizen, Reference Heres and Lasthuizen2012). Unlike for-profit firms that focus more on financial metrics, nonprofits operate primarily on moral legitimacy (Moore, Reference Moore2000; Yasmin & Ghafran, Reference Yasmin and Ghafran2021). More importantly, nonprofit leaders are expected to uphold public trust, particularly among donors and beneficiaries, as a matter of organizational survival (Constandt & Willem, Reference Constandt and Willem2019).

Previous studies examine the role of ethical leadership in shaping followers’ work behaviors, drawing primarily on social learning theory, arguing that leaders are role models, and social exchange theory, focusing on the norm of reciprocity (Constandt & Willem, Reference Constandt and Willem2019). In addition, the JD-R model offers a useful lens to conceptualize ethical leadership as a critical job resource that enhances employees’ work engagement (Mer et al., Reference Mer, Kumar, Verma, De and Mathew2024).

In nonprofit work contexts, ethical leadership could serve as a job resource to improve employee work engagement in several ways. Ethical leaders are role models in adhering to appropriate behaviors, including high levels of engagement (Den Hartog & Belschak, Reference Den Hartog and Belschak2012). According to the social learning theory, followers observe and imitate their leaders’ behaviors (Brown et al., Reference Brown, Treviño and Harrison2005; Junaidi, Reference Junaidi2024), thereby increasing their work engagement. Besides, ethical leaders lead with integrity and respect, and prioritize followers’ interests (Mayer et al., Reference Mayer, Aquino, Greenbaum and Kuenzi2012). Following social exchange theory, when followers perceive a fair and supportive working environment created by ethical leaders, they would feel a sense of obligation to reciprocate by increasing their job involvement and adhering to other positive work behaviors (Brown & Treviño, Reference Brown and Treviño2006; Kacmar et al., Reference Kacmar, Andrews, Harris and Tepper2013). Therefore, we propose:

The mediating role of mission valence

The extended JD-R model proposed by Selander (Reference Selander2015) suggests that employees’ ideological attitudes toward work also predict their work engagement. Existing literature has identified public service motivation, value congruence, and spirituality as ideological resources exerting influence on work engagement (Mer et al., Reference Mer, Virdi and Sengupta2023; Park et al., Reference Park, Kim, Park and Lim2018; Selander, Reference Selander2015). This study takes another ideological resource into account: mission valence.

The concept of mission valence was developed based on the expectancy theory of motivation, suggesting that individuals would assess the value of outcomes before making decisions (Vroom, Reference Vroom1964). Rainey and Steinbauer (Reference Rainey and Steinbauer1999), studying public sector employees, expanded the concept and proposed mission valence, which refers to the importance employees place upon the organization’s mission. Employees are more motivated to perform better if they find that the mission of the organization they work for is attractive and valuable (Rainey & Steinbauer, Reference Rainey and Steinbauer1999). Although existing literature on mission valence has focused primarily on public sector employees (Caillier, Reference Caillier2016; Wright et al., Reference Wright, Moynihan and Pandey2012), employees’ emotional attachment to the organizational mission is equally important in nonprofit organizations. In particular, previous nonprofit studies have paid more attention to the concept of mission alignment, which either focuses on the organizational level to explore the consistency between a nonprofit’s projects and its mission (Ma et al., Reference Ma, Jing and Han2018), examines goal congruence within inter-organizational settings (Chapman & Varda, Reference Chapman and Varda2017), or, at the individual level, explores the alignment of employees’ or volunteers’ personal values with organizational missions (AbouAssi et al., Reference AbouAssi, Upoma and Walls2026; Wang, Reference Wang2022). Mission valence, however, goes beyond mere alignment and reflects individuals’ perception of how attractive or exciting the organization’s mission is (Rainey & Steinbauer, Reference Rainey and Steinbauer1999).

Previous research has shown that transformational leaders who are committed to articulating a clear and appealing mission to followers can strengthen their mission valence (Caillier, Reference Caillier2016; Wright et al., Reference Wright, Moynihan and Pandey2012). In the nonprofit setting, this study argues that ethical leaders also shape followers’ attitudes toward the organization’s mission by modeling behaviors consistent with the organization’s mission and values (De Hoogh & Den Hartog, Reference De Hoogh and Den Hartog2008). Moreover, ethical leaders clearly communicate the organization’s core values to followers (Brown et al., Reference Brown, Treviño and Harrison2005). This makes the organization’s mission visible and clear to employees, thereby increasing their understanding and recognition of the organization’s mission (Ahmad et al., Reference Ahmad, Donia, Khan and Waris2019; Brown et al., Reference Brown, Treviño and Harrison2005).

In addition, given its emphasis on promoting an ethical climate within the organization, ethical leadership can reduce ethical issues and lead the organization to achieve its mission and goals in an ethical and appropriate way (Grojean et al., Reference Grojean, Resick, Dickson and Smith2004). This integrity minimizes ethical controversies, making the organization’s mission appear more legitimate and attractive to employees. When nonprofit employees feel confident and proud of their organization’s mission, which is seen as attractive and worthwhile to society (Rainey & Steinbauer, Reference Rainey and Steinbauer1999), they are likely to be more engaged with their work. Therefore, we propose:

The mediating role of work meaningfulness

In addition to mission valence, this research considers work meaningfulness as another mediator bridging ethical leadership and nonprofit employees’ work engagement. Work meaningfulness is defined as “the degree to which the individual experiences the job as one which is generally meaningful, valuable, and worthwhile” (Hackman & Oldham, Reference Hackman and Oldham1976: 256), which is another positive psychological state of employees (Nelson & Simmons, Reference Nelson, Simmons, Quick and Tetrick2003). This research argues that work meaningfulness also serves as an ideological resource within the JD-R model (Mer et al., Reference Mer, Kumar, Verma, De and Mathew2024; Selander, Reference Selander2015). This resource is particularly essential within the nonprofit sector where employees often seek intrinsic rewards and a sense of purpose.

Previous studies have explored antecedents of work meaningfulness. In particular, Wang and Xu (Reference Wang and Xu2019) suggested that it is an ethical responsibility of organizational management to help employees find meaning in their work. But they noted that meaningfulness is rooted in employees’ subjective interpretations of work experiences and individuals’ agency (Lips-Wiersma & Morris, Reference Lips-Wiersma and Morris2009; Wang & Xu, Reference Wang and Xu2019). Thus, ethical leaders act as crucial facilitators for employees’ own sense of purpose rather than a top-down manipulation perceived as inauthentic (Bailey & Madden, Reference Bailey and Madden2016). First, ethical leaders foster meaningfulness through role modeling. In nonprofits, ethical leaders demonstrate how they lead and act with integrity, honesty, and responsibility, and then these ethical behaviors can be observed and imitated by followers (Mayer et al., Reference Mayer, Aquino, Greenbaum and Kuenzi2012). When employees engage in ethical behaviors, and especially when they perceive the positive impact of their ethical behaviors on the organization and society, they are more likely to sense a good purpose in their work (Sharif & Scandura, Reference Sharif and Scandura2014).

Second, ethical leaders are committed to communicating with employees about the meaning of what they are trying to achieve, especially their contribution and responsibility to society (Piccolo et al., Reference Piccolo, Greenbaum, Hartog and Folger2010). Such value-based communication can enhance employees’ sense of purpose in their work. Third, ethical leaders actively construct an ethical climate within organizations, where employees perceive that the organization is achieving its goals and missions in ethical ways, therefore feeling their work is meaningful (Michaelson et al., Reference Michaelson, Pratt, Grant and Dunn2014).

There is also evidence showing that work meaningfulness influences various outcomes, including work engagement (Mostafa & Abed El-Motalib, Reference Mostafa and Abed El-Motalib2020; Park et al., Reference Park, Kim, Park and Lim2018). Piccolo et al. (Reference Piccolo, Greenbaum, Hartog and Folger2010) suggested that ethical leadership helps employees perceive the meaningfulness of their work, which in turn translates into increased effort and productivity. Based on the above discussion, this research proposes:

The serial mediating effect of mission valence and work meaningfulness

It is noted in previous research that “an organization’s mission can be a powerful and positive force” (Wright & Pandey, Reference Wright and Pandey2011: 22). Thus, this study tries to examine the influence of mission valence on nonprofit employees’ perceptions of work meaningfulness and its subsequent effect on work engagement. Mission valence represents the importance of an organizations’ missions to its employees (Caillier, Reference Caillier2014). If employees perceive that their organizations’ missions are attractive and worthwhile, they would internalize the missions or values into their own belief systems and then find greater meaning in their work (Weiss & Piderit, Reference Weiss and Piderit1999). This positive mind condition, in turn, motivates them to increase their work engagement (Mostafa & Abed El-Motalib, Reference Mostafa and Abed El-Motalib2020). Therefore, building on the arguments above, this study develops the following hypothesis:

Stakeholder participation as a moderator

Based on the proposed serial mediating mechanisms of mission valence and work meaningfulness, this study further explores the moderating effect of stakeholder participation. In nonprofit governance, stakeholder participation is essential for enhancing transparency, trust, and effectiveness (Balser & McClusky, Reference Balser and McClusky2005; Fu et al., Reference Fu, Cooper, Woo and Kwestel2024; López‐Arceiz & Bellostas, Reference López‐Arceiz and Bellostas2020). Within the JD-R model, stakeholder participation can serve as an external job resource that, along with ethical leadership, influences employees’ attitudes, behaviors, and work outcomes (Demerouti & Bakker, Reference Demerouti and Bakker2023).

For nonprofit organizations, there are two important stakeholders: donors, who provide financial resources, and beneficiaries, whose needs and outcomes are related to an organization’s mission. Existing literature has argued that donors and beneficiaries are not mere external entities, but value co-creators contributing to nonprofit governance (Benjamin, Reference Benjamin2021; Wellens & Jegers, Reference Wellens and Jegers2014). Their active involvement can enhance nonprofits’ accountability and service quality (Wellens & Jegers, Reference Wellens and Jegers2014). High-quality contact with beneficiaries can positively influence nonprofit workers’ psychological experiences and job satisfaction (Borzaga & Tortia, Reference Borzaga and Tortia2006; see also Wellens & Jegers, Reference Wellens and Jegers2014). We argue that stakeholder participation can help nonprofit employees see and understand the value of their organizations.

However, this study does not focus on the direct influence of stakeholder participation on nonprofit employees’ attitudes or behaviors. Instead, it suggests an interactive effect of ethical leadership and stakeholder participation on nonprofit employees’ mission valence, and in turn, the indirect impact on work engagement. As discussed above, ethical leaders create an open and ethical communication environment, where followers are encouraged to discuss the organization’s missions and visions. If stakeholders can effectively participate in nonprofit governance and provide their feedback, employees are more likely to understand how their work solves social issues or creates positive social impact (Wang, Reference Wang2022). Therefore, the study suggests that the combination of the two resources, ethical leadership as internal and stakeholder participation as external, enhances the perceived attractiveness of the organizational mission, ultimately improving employees’ work engagement. This study proposes:

Data collection

Data for this study were collected using a snowball-sampling method due to the difficulty in defining the overall research population. This method has been widely used to help researchers access target participants (Dusek et al., Reference Dusek, Yurova and Ruppel2015). To begin with, we contacted 24 nonprofit employees through professional and personal networks as the initial seed sample. These participants were drawn from 24 formally registered nonprofit organizations across four provinces in China–Jiangsu (East), Guangdong (South), Sichuan (West), and Shaanxi (Northwest). All these nonprofit organizations have established a hierarchical governance structure, which provides us with the necessary leader-follower dynamic to examine the effects of ethical leadership. Also, these nonprofit organizations represented various service fields, including aged care, education, environmental protection, and community development. These strategies helped us collect data from different entry points, which can reduce selection bias.

After being informed of the study’s purpose and providing consent, participants were invited to complete the survey and also asked to recommend their colleagues and friends who met the study criteria. Our sample selection criteria are full-time employees of nonprofit organizations in China, including general staff, mid-level managers, and senior managers, but excluding top organizational leaders such as CEOs, board chairs, and executive directors. Newly referred participants were also asked to recommend additional participants following the same criteria after completing the survey. We repeated this referral process and gradually expanded the sample size. Technically, we distributed the survey via a QR code and a web link through emails and WeChat. This allowed participants to access and complete the survey on the Wenjuanxing platform using their preferred method. All participants were assured of the anonymity of their responses.

From December 2023 to February 2024, we received a total of 386 responses. Those participants were from 32 nonprofit organizations. To ensure data quality, we conducted a data cleansing process before data analysis. We removed respondents whose survey completion times were excessively short or long, and also those who provided identical answers to all items, including reverse-coded questions. After this process, the final valid sample for this study consisted of 345 responses.

As the statistical data show, most respondents (62.3%) were female, which reflects the gender composition of the nonprofit workforce (Mastracci & Herring, Reference Mastracci and Herring2010). According to the data from the China Development Brief (CDB) survey of 1849 nonprofit employees in China, approximately 70.74% were women (Liu, Reference Liu2018). Thus, the gender composition of our sample is broadly consistent with national trends. In terms of age, our sample suggests a relatively young workforce, with 61.1% of respondents under the age of 35, closely aligning with the CDB data showing that 68.2% of nonprofit employees were within the 22–35 age range (Liu, Reference Liu2018). Most respondents (66.6%) in our sample held a bachelor’s degree or above, but the educational level was lower than figures reported by other studies. The CDB survey found that 88.26% of nonprofit employees held a bachelor’s degree or above (Liu, Reference Liu2018), and the China Foundation Center (2022) reported that 77% of full-time foundation staff in China had a bachelor’s degree or higher. One possible explanation is that the snowball-sampling approach recruited more frontline nonprofit workers. When looking at job positions, 58% of respondents were general staff members, and middle-level and senior managers respectively comprised 22.9% and 19.1% of the sample. The sample also included a mix of new and experienced employees. Specifically, 55.9% of respondents had less than 3 years’ experience, while 44.1% had served over 3 years.

Measurements

This research adopted well-established scales to measure the five key variables. However, since the participants were Chinese and Chinese is their first language, we translated all English scales into Chinese. The translation process followed Brislin’s (Reference Brislin1970) back-translation techniques. One of our researchers first translated the original scales into Chinese, and another researcher independently back-translated the Chinese version into English. Then, we compared the two English versions and discussed the differences. Finally, we made some minor revisions to the Chinese version to ensure the accuracy of each item. All items were measured using 5-point Likert-type scales, with responses ranging from 1 = “strongly disagree” to 5 = “strongly agree.”

Ethical leadership was measured using the 10-item scale developed by Tian et al. (Reference Tian, Liu and Fan2015) in their study on CSR in China. This scale includes eight items derived from the classic ethical leadership scale by Brown et al. (Reference Brown, Treviño and Harrison2005) and two items from the ethical dimension of paternalistic leadership scale developed by Cheng et al. (Reference Cheng, Chou, Wu, Huang and Farh2004). A sample item is: “My supervisor sets an example of how to do things the right way in terms of ethics.” The Cronbach’s alpha for this scale was 0.96.

Mission valence was measured using the 4-item scale adapted from Wright and Pandey (Reference Wright and Pandey2011). A sample item is: “For me, the mission of this organization is exciting.” The Cronbach’s alpha for this scale was 0.78.

Work meaningfulness was measured with a scale adapted from Spreitzer’s (Reference Spreitzer1995) Psychological Empowerment Scale. We used the dimension of meaning, including three items. A sample item is: “The work I do is meaningful to me.” The Cronbach’s alpha for this scale was 0.89.

Stakeholder participation was measured with a scale adapted from the Stakeholder Integration Scale developed by Plaza-Úbeda et al. (Reference Plaza-Úbeda, de Burgos-Jiménez and Carmona-Moreno2010). We used the dimension of stakeholder interactions, including six items. A sample item is: “The organization frequently has meetings with the stakeholders.” The Cronbach’s alpha for this scale was 0.90.

Work engagement was measured using the short version of the Utrecht Work Engagement Scale, including nine items, developed by Schaufeli et al. (Reference Schaufeli, Bakker and Salanova2006). A sample item is: “At my work, I feel bursting with energy.” The Cronbach’s alpha for this scale was 0.92.

Lastly, we controlled for nonprofit employees’ age, position, tenure, and education level, consistent with previous literature (e.g., Mostafa & Abed El-Motalib, Reference Mostafa and Abed El-Motalib2020; Wang & Xu, Reference Wang and Xu2019).

Analysis procedures

Our data analyses were guided by a moderated serial mediation framework that links ethical leadership to work engagement through mission valence and work meaningfulness, and is moderated by stakeholder participation. We conducted the data analyses in several steps. We first used Mplus to conduct a common method bias test and confirmatory factor analysis (CFA). Then, we used SPSS to conduct descriptive and correlation analyses. To test the hypotheses, we employed structural path analysis to examine the mediation and moderated mediation effects. Finally, we constructed bias-corrected 95% confidence intervals using a bootstrap procedure with 10,000 resamples to estimate the indirect and conditional indirect effects, following the approach suggested by Preacher et al. (Reference Preacher, Rucker and Hayes2007).