Hands to work and heart to God – Organizational justice, Islamic work ethics, ethical leadership and work outcomes

Abstract

Effective leadership and work ethics are critical for an organization's success. While previous studies have examined the relationship between leadership and work ethics, there are gaps in understanding the impact of ethical leadership and work ethics on work outcomes, particularly in different research contexts and religious perspectives, specifically in combining the influence of organization justice. This study aims to examine the relationship between Islamic work ethics, organizational justice, and work outcomes in the specific context of financial institutions. Using PLS-SEM with Smart PLS (version 3) on a sample of 372 employees, the study found a direct relationship between organizational justice and job satisfaction and organizational commitment, but no direct association with turnover intention. There was partial mediation of Islamic work ethic in the relationship between organizational justice and job satisfaction and organizational commitment. The moderation effect of ethical leadership was partially supported for the interaction between organizational justice and job satisfaction and organizational commitment. The study contributes to enhancing the understanding of the relationship between Islamic work ethics and work performance and provides practical implications for financial institutions to improve work-related policies.