Islamic Work Ethics and Employee Performance in Islamic Financial Institutions
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Authors
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Yuniatin Trisnawati Dwi Kusuma Wardani
Department of Accounting, Economics, and Business, Universitas Dharma AUB Surakarta, Indonesia 57135
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Ridwan Wahyudi
Department of Accounting, Economics, and Business, Universitas Dharma AUB Surakarta, Indonesia 57135
Keywords:
Islamic Work Ethics, Employee Performance, Islamic Leadership, Job Satisfaction, Sharia EngagementAbstract
Purpose—This study examines the influence of Islamic leadership, job satisfaction, organizational commitment, and Sharia engagement on employee performance, with Islamic work ethics positioned as a moderating variable in Islamic financial institutions.
Design/methodology/approach — This study employed a quantitative explanatory design. Data were collected from employees of Islamic financial institutions in Indonesia. The data were analyzed using Partial Least Squares Structural Equation Modeling in SmartPLS.
Findings—The results show that Islamic leadership, job satisfaction, organizational commitment, Sharia engagement, and Islamic work ethics have positive and significant effects on employee performance. Job satisfaction and organizational commitment demonstrate the strongest effects on employee performance. However, the moderation analysis shows that Islamic work ethics do not significantly moderate the relationships between Islamic leadership, job satisfaction, organizational commitment, Sharia engagement, and employee performance.
Research limitations/implications—This study was conducted using cross-sectional data from employees of Islamic financial institutions in Indonesia. Future research should involve broader institutional settings, longitudinal designs, and comparative analysis between Islamic and conventional financial institutions to improve generalisability and causal interpretation.
Practical implications—The findings suggest that Islamic financial institutions should strengthen Islamic leadership practices, improve employee satisfaction, build organizational commitment, enhance Sharia engagement, and institutionalize Islamic work ethics as a direct ethical foundation for improving employee performance.
Originality/value—This study contributes to Islamic banking and organizational behavior literature by integrating Islamic leadership, job satisfaction, organizational commitment, Sharia engagement, Islamic work ethics, and employee performance into a unified framework grounded in spiritual leadership theory, Islamic work ethics theory, job satisfaction theory, organizational commitment theory, and employee engagement literature.
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