Ethical leadership, effectiveness and team performance: an Islamic perspective

Abstract

Ethical leadership is one of the influential factors on the organisational success. According to Al-Ghazali's conceptualisation justice, wisdom, temperance and courage have significant impact on the leader's effectiveness and in turn on team performance. In this respect, this study aims to investigate the relationship between ethical leadership and team performance with these virtues. Data of the study were collected from 408 employees among private companies in Kurdistan region of Iraq. Based on data analysis there is a positive correlation between ethical leadership (based on Islamic ethics) and leadership effectiveness and team performance. Regarding the dimensions of ethical leadership, justice, wisdom, and temperance are positively associated with leadership effectiveness and team performance whereas the relationship between courage and dependent variables is insignificant. The study contributes to ethical leadership and Islamic leadership literature by proposing a unique model based on Al-Ghazali's virtue of ethics perspective and providing empirical evidence regarding the effects of Islamic ethics on leadership effectiveness and team performance.