Iqtishoduna: Jurnal Ekonomi Islam
Vol. 15 No. 1 (2026): April (on progress)

Transformational Leadership, Self-Efficacy, and Employee Performance: The Mediating Role of Innovative Work Behavior and the Moderating Effect of Islamic Work Ethics

Rendra Adi Dharma (Universitas Muhammadiyah Jember)
Arik Susbiyani (Universitas Muhammadiyah Jember)
Mohammad Thamrin (Universitas Muhammadiyah Jember)
Nurul Qomariah (Universitas Muhammadiyah Jember)
Mutiara Sari Dewi (Universiti Muhammadiyah Malaysia)



Article Info

Publish Date
23 Apr 2026

Abstract

Employee performance remains a key determinant of organizational effectiveness, particularly in public sector institutions that are expected to deliver high-quality public services while maintaining ethical standards. Although previous studies have extensively examined the effects of transformational leadership and self-efficacy on employee performance, limited empirical evidence explains how innovative work behavior mediates these relationships and how Islamic work ethics strengthen their effectiveness. This study investigates the direct effects of transformational leadership and self-efficacy on employee performance, examines the mediating role of innovative work behavior, and evaluates the moderating effect of Islamic work ethics. A quantitative explanatory research design was employed using a census approach involving 98 employees of the Regional Development Planning Agency (BAPPEDA) of Jember Regency, Indonesia. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with WarpPLS 8.0. The findings indicate that transformational leadership and self-efficacy significantly enhance innovative work behavior and employee performance. Innovative work behavior partially mediates the relationships between transformational leadership, self-efficacy, and employee performance. Furthermore, Islamic work ethics strengthen the positive influence of transformational leadership and innovative work behavior on employee performance, highlighting the importance of ethical values in improving organizational outcomes. This study extends the organizational behavior literature by integrating leadership, psychological capability, innovation behavior, and Islamic work ethics into a comprehensive framework for enhancing employee performance in public sector organizations.

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Journal Info

Abbrev

iqtishoduna

Publisher

Subject

Economics, Econometrics & Finance

Description

The focus of the Journal of Syari'ah Economics and Islamic Business all aspects of scientific discussions about Islamic Economics, Syari'ah Banking and Islamic Economic Management ideas covering: 1) research article, 2) conceptual idea, 3) review of the literature, and 4) practical ...