Leadership and organizational commitment in the Islamic banking context: the role of organizational culture as a mediator

Abstract

The purpose of this study is to examine the effect of leadership and organizational culture on organizational commitment in the context of Malaysian Islamic banking service sector. A questionnaire survey was conducted among 250 employees of an Islamic bank to collect the data which yielded 200 valid responses. The data were analyzed using statistical package for social science (SPSS) software version 19.0. Linear and Multiple Regression and SOBEL test were used in testing the research hypotheses. The results reveal that leadership and organizational culture significantly affect organizational commitment. Moreover, leadership plays a significant role in enhancing organizational culture. On the other hand, organizational culture mediates the relationship between leadership and organizational commitment. It implies that, leadership style, organizational culture and organizational commitment all play vital role in the context of Malaysian Islamic banking industry.