The Moderating Role of Employee Empowerment and Distributive Justice in Transformational Leadership with Its Impact on Organizational Commitment in Islamic Banks at Pakistan

The basic of the current studywas to discover the influence of transformational leadership on organizational commitment,distributive justice, and employee empowerment as moderate variables in the Islamic banking company of DistrictSwat, KP-Pakistan.Adopted questionnaires were used to have five pointsLikert scalesand containing 24 items. 18 samples were taken with Random Sampling Techniquesfrom the Islamic bank's sector.A total of 305 questionnaires were distributedamong employees and the feedback rate was 80 % which 245questionnaires received.Data analysis used multiple linear regression. The study found thatorganizational commitment is positively and significantly affect empowerment. Distributive justice has a positive influence on organization commitment but not significant. There was also found that the leadership of transformational influences organization commitment positively and significantly.The variance of transformational leadership and organizational commitments were 16% which indicates a weaksignificant influence.

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The role of tribalism as mediator between employee empowerment and organizational commitment in Yemeni Islamic banking sector

Management & Marketing. Challenges for the Knowledge Society ◽

10.2478/mmcks-2019-0009 ◽

2019 ◽

Vol 14 (1) ◽

pp. 130-149

Author(s):

Ali Salman Emam ◽

Juraifa Bte Jais ◽

Mosab I. Tabash

Keyword(s):

Organizational Commitment ◽

Social Exchange ◽

Structural Equation ◽

Social Exchange Theory ◽

Banking Sector ◽

Employee Empowerment ◽

Islamic Banking ◽

Islamic Banks ◽

The Relationship

Abstract This study examined the influence of employee empowerment on organizational commitment, and the level to which Tribalism plays a role in the relationship between the former two variables in the context of Islamic banks in Yemen. Indeed, the rationale for introducing employee empowerment is to increase levels of employee’s commitment to ensue positive outcomes. The interrelationships between the variables were analyzed to develop a strategy for increased organizational commitment in the Yemeni Islamic banking sector. This study used a social exchange theory to illustrate the study framework to link the relations between employee empowerment, organizational commitment, and Tribalism. This study relied on quantitative approaches. The study sample comprised of Yemeni Islamic banks’ employees. 450 questionnaires were distributed to employees, out of which, 292 were retrieved and deemed usable for analysis, constituting a 65% rate of response. The partial least squares structural equation modelling (PLS-SEM) was employed to analyze data and test the proposed hypotheses. The results indicated that there is a significant relationship between empowerment of the employees and their organizational commitment in Islamic banks in Yemen. More importantly, this study revealed that Tribalism is a significant mediator on the relationship between employee empowerment, and organizational commitment.

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Sustainable Business Practices and Firm’s Financial Performance in Islamic Banking: Under the Moderating Role of Islamic Corporate Governance

Sustainability ◽

10.3390/su11236606 ◽

2019 ◽

Vol 11 (23) ◽

pp. 6606 ◽

Cited By ~ 3

Author(s):

Amin Jan ◽

Maran Marimuthu ◽

Rohail Hassan ◽

Mehreen

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Islamic Banking ◽

Managerial Ownership ◽

Business Practices ◽

Islamic Banks ◽

Sustainable Business ◽

Shariah Governance ◽

Moderating Role

This paper examines the moderating role of Islamic corporate governance on the link between sustainable business practices and the firm’s financial performance. A post-crisis period sustainability data for the decade of 2008–2017 was collected by the study. For data collection, this study used the weighted content method. The Generalized Method of Moments (GMM) statistical test was used for empirical testing. The results of the study found that the link between sustainable business practices with the firm’s financial performance measured from the shareholders’ and the management’s perspective is positive, while the subjected link measured from the market perspective was found to be insignificant. This implies that the market stakeholders of the Islamic banks are reluctant for their bank’s spending on sustainable business practices. Interestingly, the insignificant link between sustainable business practices and market performance became significant with the moderating role of Shariah governance and managerial ownership. It shows that the moderating role of Shariah governance and managerial ownership is giving confidence to market stakeholders of Islamic banks for receiving a higher financial return through sustainable business practices initiatives. These results may provide insights for several policymakers of the Islamic banking industry about integrating vital sustainability practices in their business models and about the balanced moderating role of Islamic corporate governance in the link between sustainable business practice and the firm’s financial performance. It provides a roadmap to the Islamic banking industry for efficient management of sustainability practices from an Islamic perspective and subsequently improvement of financial performance through it.

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Enhancing performance and commitment through leadership and empowerment

International Journal of Bank Marketing ◽

10.1108/ijbm-02-2018-0037 ◽

2019 ◽

Vol 37 (1) ◽

pp. 303-322 ◽

Cited By ~ 8

Author(s):

Muhammad Abid Saleem ◽

Zahra Masood Bhutta ◽

Muhammad Nauman ◽

Sadaf Zahra

Keyword(s):

Transformational Leadership ◽

Organizational Commitment ◽

Employee Performance ◽

Employee Empowerment ◽

Content Type ◽

Employee Trust ◽

Study Results ◽

Mediational Role ◽

The Impact

PurposeThe purpose of this paper is to explore the impact of transformational leadership and employee empowerment on employee performance and organizational commitment through the mediational role of behavioral integrity (BI).Design/methodology/approachData were collected through a self-administered questionnaire based on measurement of variables adopted from earlier studies. A total of 532 usable responses were collected through officer grade and executive level employees of selected banks from the Multan district, Pakistan. Confirmatory factor analysis was run using AMOS 23.0 whereas PROCESS macro in SPSS 23.0 was used for path analysis.FindingsThe study results revealed that transformational leadership and employee empowerment positively affect employee performance and organizational commitment through the mediational effect of BI.Originality/valueThe role of BI in enhancing employees’ performance and organizational commitment has been overlooked in the extant literature. Especially, in the emerging economies, where there is growing employer–employee trust deficit, this investigation brings in useful contribution.

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The Effect of Personality Traits on Organizational Commitment: Moderating Role of Distributive Justice: A Case of Public Sector Female Colleges of District Peshawar

Journal of Business & Tourism ◽

10.34260/jbt.v2i2.51 ◽

2021 ◽

Vol 2 (2) ◽

pp. 157-168

Author(s):

IMRAN SAEED ◽

GHAYYUR QADIR ◽

GHAYYUR QADIR

Keyword(s):

Organizational Commitment ◽

Public Sector ◽

Distributive Justice ◽

Personality Traits ◽

Sample Size ◽

Direct Effect ◽

Moderator Variable ◽

Cross Sectional ◽

Moderating Role

Many studies have been conducted on personality traits in different organizations and an in different culture, different region and in different countries. The current study is talk about the two traits of personality i.e agreeableness and neuroticism and their effect on employee organizational commitment. And the main contribution of this study is to introduce distributive justice as a moderator variable. Data was collected from public sector female colleges of a Peshawar district. The sample size of this study was (n=120) and the data was cross-sectional in nature. The results reveal that the direct effect of agreeableness and distributive justice on organizational commitment is significant and positive while neuroticism has insignificant effect on organizational commitment. While the combined effect shows that both interactions terms has positive and significant effect on organizational commitment.

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Economics of loan growth, credit risk and bank capital in Islamic banks

Kybernetes ◽

10.1108/k-03-2021-0232 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Faisal Abbas ◽

Shoaib Ali

Keyword(s):

Credit Risk ◽

Islamic Banking ◽

Islamic Banks ◽

Bank Capital ◽

Content Type ◽

Loan Growth ◽

The Impact ◽

The Relationship ◽

Moderating Role

PurposeThis study aims to analyze the moderating role of capital on the relationship between loan growth and credit risk for Islamic banks in the post-crisis era.Design/methodology/approachThe study used annual data of 217 Islamic banks from 38 countries and ranges from 2010–2019. The study applies a two-step system GMM method for hypotheses testing about the moderating role of bank capital on the relationship between loan growth and credit risk in Islamic banks.FindingsThe findings showed that an increase in loan growth increases the credit risk of Islamic banks, as evidenced by loan loss provisions, loan loss reserves and nonperforming loans. The results indicate that capital positively moderates the relationship between loan growth and credit risk in Islamic banking. The positive relationship between bank capital and risk-taking is in line with the “regulatory hypothesis” in banking. The findings predict lower impacts of capital on the relationship between loan growth and credit risk in the South Asian region than MENA, Africa, South, East and Central Asia regions. However, the impact of capital is higher for larger Islamic banks than medium and smaller ones.Practical implicationsThe findings of the study add value to the current debate on the role of bank capital to reduce risk-taking in Islamic banks. The study's findings have implications for policymakers, managers, especially in Islamic banking, for improving the Islamic financial system by managing the role of capital, loan growth and credit risk.Originality/valueThis is the first study to explore the moderating role of bank capital on the relationship between loan growth and credit risk in the post-crisis era, especially in Islamic banking. This is the first study in the Islamic banking context, which is providing empirical evidence for the impact of loan growth on the back looking and forward-looking proxies of credit risk under the moderating role of bank capitalization in the post-crisis era. This is the first study, which providing findings based on regions and size to compare the differences in Islamic banks for the impact of loan growth on credit risk under the moderating role of capitalization.

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