Exploring the Role of Religiosity in Moderating Employee Commitments in Islamic Banking (Study at Sharia Banks in East Java, Indonesia)

Abstract

Islamic banking has increased rapidly in Indonesia for the last few decades. As a country with Moslem domination religion, religiosity is considered as one of the essential determinants for Moslem consumers to using Islamic/sharia banking products. The primary purpose of this paper is to analyze and test the influence of organizational culture, especially the ethical values dominated by the influence of Javanese and Madura culture on employee organizational commitment and performance, and to examine how the influence of religiosity as a moderating variable on the relationship between commitment organizational and employees of performance. Data were obtained from 109 employees working in the sharia banking (both state-owned and private sharia bank) located in Jember, East Java. Data were collected through a questionnaire carried out from August to September 2019 and analyzed using PLS software. The findings indicate the ethical value of the company does not have a significant influence on organizational commitment, and the variable of religiosity turns out to play a significant role in increasing the interaction between organizational commitment to employee performance. This paper contributes to show the importance of religiosity aspects that needs to be maintained to ensure increased employee performance.