Tech-Enabled Flexible Work and Employee Productivity: The Role of Work–Life Balance and Islamic Work Ethic

Abstract

The current literature acknowledges that digital transformation has fundamentally altered Human Resource Management (HRM) practices globally. However, the adaptation of these digital practices within the Islamic public sector, which faces unique structural and cultural dynamics, remains underexplored. In Indonesia, Islamic Higher Education Institutions (PTKI) are currently navigating a "dual-disruption": a rapid technological shift necessitating flexible work arrangements (FWA) and the preservation of religious-bureaucratic traditions. This study investigates the effect of technology-based flexible working on employee productivity, with work-life balance as a mediating variable and the Islamic work ethic as a moderating variable. Employing a causal-correlational design and survey methodology, the study sampled 440 lecturers and educational staff from Islamic Higher Education Institutions in Indonesia, selected through simple random sampling method. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS version 4.1.1.4. The results indicate that technology-based flexible work arrangements increase employee productivity but negatively affect work-life balance. Work-life balance serves as a crucial mediator that bridges the relationship between flexibility and productivity. Additionally, the Islamic work ethic plays a dual role: it directly predicts work-life balance and moderates the relationship between work flexibility and balance, thereby strengthening this association. The findings imply that organizations must do more than merely adopt technology; they must also safeguard work-life balance and internalize the Islamic work ethic to achieve sustainable productivity in the long run. The limitations of this study include its cross-sectional design and focus on the Islamic cultural context, suggesting that generalization to other sectors requires longitudinal and cross-cultural research.