Abstract
Purpose: This study aims to investigate the impact of paternalistic leadership on organizational readiness for change: mediation of employee engagement and moderation of Islamic work ethics (IWE). Methodology: The sample size for this research is 203. The data were collected from faculty of private and public sector educational institutes that were in process of change. SPSS has been utilized for data analysis. Findings: Using Leader-Member Exchange (LMX) as a theoretical lens, the results indicate paternalistic leadership significantly positively impacts organizational readiness for change; employee engagement acts as a mediating agent between paternalistic leadership and organizational readiness for change; IWE moderates between the relationship of paternalistic leadership and employee engagement. Significance: The mediation of employee engagement and moderation of IWE between paternalistic leadership and organizational readiness for change is still under research so this makes our research a unique contribution. Limitations: This research shall add to the Islamic ethical principles of employees alongside output which will advantage the organization as well as employees. Implications: This research has managerial implications for change agents, organizational development (OD) consultants; policymakers of educational institutions, and professionals regarding change strategies, benefits, and the Islamic business environment.
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