Unleashing potential: Islamic leadership’s influence on employee performance via Islamic organizational values, organizational culture and work motivation

Abstract

Purpose In the present era, the achievement of employee Islamic performance has become a significant challenge for organizations. The purpose of the study is to examine the effect of Islamic leadership on employee Islamic performance directly and indirectly by bridging the connections between employees’ Islamic organizational values, Islamic organizational culture, and Islamic work motivation among the employees of Egyptian banks. Design/methodology/approach The authors used quantitative methods in this study and based its findings on the data received from 312 respondents in response to a questionnaire. Findings By using SmartPLS 4, this study’s findings demonstrate that Islamic leadership has a positive and significant effect on Islamic organizational values, culture, employee Islamic performance and work motivation. While Islamic organizational values and Islamic organizational culture do not significantly impact employee Islamic performance, Islamic work motivation is a significant predictor of employee Islamic performance. On the one hand, Islamic organizational values and Islamic organizational culture do not mediate the relationship between Islamic leadership and employee Islamic performance. On the other hand, Islamic work motivation is a mediating variable that significantly develops the relationship between Islamic leadership and employee Islamic performance. Practical implications The study’s findings support policymakers and human resource management practitioners to develop plans and strategies which enhance the Islamic performance of organizations’ employees. In addition, this study’s findings provide insights for researchers and academicians in developing Islamic leadership within their organizations so that they operate by Islamic values and codes. Originality/value Finally, by offering an integrated model of Islamic leadership, Islamic organizational values, Islamic organizational culture and employee Islamic performance, this study’s findings fill the gaps in the context of bank employees in a developing country, namely, Egypt.