Prophetic leadership, satisfaction, Islamic citizenship capability, and performance in Islamic financial institutions

Abstract

Aim/purpose – The leadership style in an organization should align with its goals and context. Prophetic leadership (PL) is particularly suited to Indonesian culture, where most of the population is Muslim. This research explores the impact of PL on employee job performance (EJP), mediated by employee job satisfaction (EJS) and Islamic citizenship capability (ICC), within the context of Indonesian Islamic financial institutions. By examining these relationships, this research seeks to provide a comprehensive understanding of how PL enhances EJP through the mediating roles of EJS and ICC, addressing inconsistencies in previous studies. Design/methodology/approach – A quantitative approach based on empirical principles was used, with data collected via questionnaires distributed to 230 employees of Islamic financial institutions in Yogyakarta and Central Java, selected through non-probability sampling. Data analysis was conducted using structural equation modeling (SEM) with AMOS 22 software. Findings – Results indicate that PL positively influences EJP, EJS, and ICC. Additionally, EJS significantly affects EJP, while ICC does not. Mediation analysis shows that EJS mediates the relationship between PL and EJP, whereas ICC does not. Research implications/limitations – These findings highlight the critical role of PL in enhancing EJS and EJP, suggesting that organizations should focus on strengthening this leadership style to improve overall performance. Originality/value/contribution – These findings underline the novelty of the concept of ICC and the importance of adopting PL to improve EJP in Indonesian Islamic organizations.