Improving organizational agility through ethical leadership, employee job satisfaction and Islamic OCB

Abstract

In the contemporary business realm, characterized by dynamic shifts and technological progress, agility has emerged as a vital concept to enable businesses to navigate and thrive amidst uncertainty and intensified competition. Key to fostering Agility is garnering comprehensive support from all stakeholders, notably organizational leaders and employees. This research aims to explore several factors contributing to Organizational Agility, including Ethical Leadership, Islamic OCB, and Employee Job Satisfaction. Adopting a quantitative methodology, the research focuses on employees and managers in the café and restaurant businesses in Yogyakarta, renowned for its dynamic nature and competitive environment. With a total sample of 179 managers and employees, participants were selected through purposive sampling criteria, targeting establishments operational for at least one year, employing a minimum of ten staff, and respondents with tenure exceeding six months in supervisory, managerial, or ownership capacities. Primary data collection utilized questionnaires, and structural equation modeling via AMOS software facilitated analysis. Results reveal a positive correlation between Ethical Leadership and Employee Job Satisfaction, Islamic OCB, and Organizational Agility. Additionally, Employee Job Satisfaction and Islamic OCB were found to impact Organizational Agility positively. Thus, integrating Islamic OCB into business practices offers a promising avenue for enhancing Agility, particularly in Muslim-majority regions.