Structural Equation Modelling Using AMOS based Empirical Analysis: Direct and Indirect Effects of Job Performance Factors among Jordanian Islamic Banks

Abstract

In order to ensure that the Islamic bank is staying competitive, job performance plays a significant role to ensure that the organization could be successful in the future. This study was designed to investigate the effect of psychological empowerment (PE), Knowledge sharing (KS) on job performance (JP) among employees working in Islamic banking sector in Jordan. The study further tests the moderating effects of Islamic work ethics (IWE) on the model. The data were collected using a questionnaire, as the instrument for the primary data collection, with total collected back responses of 357 from Islamic banks employees who have actually participated in the research. Structural equation modeling technique was used to fully analyze the data in order to determine what level of the relationship between PE, KS, IWE and JP were existed. The findings confirm the hypothesis that PE and KS positively effects on JP. Additionally, IWE full moderate between PE and JP. The latter effect is also significant but IWE partial moderate between KS and JP. The findings triggers future researchers to conduct similar studies for other sectors in Jordan, possibly in different contexts and perspectives.