ITQAN: Journal of Islamic Economics, Management, and Finance
Vol. 4 No. 1 (2025): ITQAN: Journal of Islamic Economics, Management, and Finance

The Influence of Situational Leadership Style and Work Orientations on Employee Performance in Jakarta Islamic Banking Industry

Junaedi, Edy (Unknown)
Ali, Juhary (Unknown)



Article Info

Publish Date
15 Dec 2024

Abstract

Leadership style has a strategic role in increasing employee performance, especially in the Islamic banking sector. This study examines the influence of leadership style and work orientation on employee performance in the Islamic banking industry in Jakarta. This study uses a quantitative method with a descriptive approach with a questionnaire as the main instrument, tested for validity and reliability through a preliminary trial. This research used a purposive sampling technique; data was collected from 364 employees from 12 Islamic commercial banks and Islamic business units. Data were analyzed using the PARTIAL least Square Sequential Equation Model (PLS-SEM) method. The results of the study found that situational leadership style has a significant influence on employee performance. In addition, work orientation also has a significant influence on improving performance. These findings indicate that leaders in Islamic banking need to encourage innovation, listen to employee expectations, and communicate effectively to achieve optimal performance. In this study, adjusting leadership style to the unique context of Islamic banking has been shown to increase employee productivity. Organizations in the Islamic banking sector are advised to adopt an inclusive leadership style and focus on developing a culture of innovation to drive better results.

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Journal Info

Abbrev

itqan

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

ITQAN: Journal of Islamic Economics, Management, and Finance (E-ISSN: 2810-0700) is a scientific journal which focuses on the field of business. The scope of the journal is in the fields of Economics, Management, and Islamic Finance with sub-themes including Business Management, ZISWAF Management, ...