The relationship between Islamic work ethic and workplace outcome: A partial least squares approach

Abstract

Purpose: The purpose of this paper is to examine the relationship between Islamic work ethic (IWE) and employees’ attitude and behaviour in term of perceived organisational justice, psychological ownership (PSY), and employees’ performance in the Islamic financial institutions in Malaysia. Design/methodology/approach: This study used a sample of 301 employees of Islamic financial institutions and employed structural equation modelling-partial least square technique in order to analyse the data. Findings: The findings demonstrated that IWE has both direct and indirect effects on attitudinal as well as behavioural outcomes. Practical implications: Managers who want to enhance their employees’ attitude and behaviour are strongly advised to give proper attention to the concept work ethic. Moreover, they need to conduct training programs to instil these values and to emphasise its crucial role in enhancing the effectiveness and efficiency of the organisation. Originality/value: This study contributes to the body of knowledge on IWE by: testing its ability to predict employees’ performance, their perception of organisational justice, and their feeling of PSY, and examining the mediating effect of perceived organisational justice and PSY between IWE and employees’ performance.