The objective of this research is to investigate how ethical leadership (EL) directly or indirectly impacts adaptive performance (AP) within the hospitality industry, focusing on the mediation of trust in leaders (TiL) and job crafting (JC).

Data were gathered from 328 employees and 66 leaders across 28 hotels in central and northern areas of Pakistan using a time-lagged methodology. Structural equation modeling was applied for data analysis using SPSS and AMOS.

Findings present a strong connection between EL and AP, with both TiL and JC serving as independent and sequential mediators. The study also revealed that EL is directly linked to TiL and JC.

Findings suggest that hospitality firms should foster a culture of EL by focusing on hiring and employees’ development programs, enhancing their dynamic capabilities to adapt to the changes.

By examining the AP of frontline employees, this study identifies new outcomes of EL within the hospitality context. Furthermore, it also contributes to the literature by exploring the novel impact of EL on AP through TiL and JC.