The relationship between Islamic work ethic and workplace outcome. A partial least squares approach
| Date | 05 November 2018 |
| Pages | 1286-1308 |
| Published date | 05 November 2018 |
| DOI | https://doi.org/10.1108/PR-05-2017-0138 |
| Author | Jihad Mohammad,Farzana Quoquab,Fazli Idris,Mohammed Al-Jabari,Nazimah Hussin,Raed Wishah |
| Subject Matter | HR & organizational behaviour,Global HRM |
The relationship between
Islamic work ethic and
workplace outcome
A partial least squares approach
Jihad Mohammad and Farzana Quoquab
International Business School, University of Technology, Malaysia,
Kuala Lumpur, Malaysia
Fazli Idris
UKM Graduate School of Business, National University of Malaysia,
Bangi, Malaysia
Mohammed Al-Jabari
City University College of Ajman, Ajman, United Arab Emirates
Nazimah Hussin
University of Technology, Malaysia, Kuala Lumpur, Malaysia, and
Raed Wishah
Princess Sumaya University for Technology, Amman, Jordan
Abstract
Purpose –The purpose of this paper is to examine the relationship between Islamic work ethic (IWE) and
employees’attitude and behaviour in term of perceived organisational justice, psychological ownership (PSY),
and employees’performance in the Islamic financial institutions in Malaysia.
Design/methodology/approach –This study used a sample of 301 employees of Islamic financial institutions
and employed structural equation modelling-partial least square technique in order to analyse the data.
Findings –The findings demonstrated that IWE has both direct and indirect effects on attitudinal as well as
behavioural outcomes.
Practical implications –Managers who want to enhance their employees’attitude and behaviour are
strongly advised to give proper attention to the concept work ethic. Moreover, they need to conduct training
programs to instil these values and to emphasise its crucial role in enhancing the effectiveness and efficiency
of the organisation.
Originality/value –This studycontributes to the body of knowledgeon IWE by: testing its abilityto predict
employees’performance, their perception of organisational justice, andtheir feeling of PSY, and examiningthe
mediating effectof perceived organisational justiceand PSY between IWE and employees’performance.
Keywords Quantitative, Advanced statistical, Islamic work ethic, Psychological ownership,
Employees performance, Perceived organizational justice
Paper type Research paper
1. Introduction
Ethical employees with constructive, optimistic and positive work behaviours are crucial
assets for any organisation to prosper and sustain. Attracting and retaining such employees
can enhance and advance organisational image in the eyes of their customers. In contrast,
employees’unethical behaviours can tarnish the reputation of organisation and lead to poor
working environment for others to work in. Work ethic refers to a dispositional variable that
varies among individuals and is formed in the early stage of human life, which also has a
profound influence on employees’attitudes and behaviour at work (Saks et al., 1996).
It contributes positively to job performance and productivity (Noe et al., 2000), reduces
absenteeism, counterproductive behaviour s and employee turnover (Sheehy, 1990).
Personnel Review
Vol. 47 No. 7, 2018
pp. 1286-1308
© Emerald PublishingLimited
0048-3486
DOI 10.1108/PR-05-2017-0138
Received 1 May 2017
Revised 31 December 2017
22 January 2018
7 February 2018
Accepted 4 March 2018
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0048-3486.htm
1286
PR
47,7
Hence, the work ethic construct was given significant research attention and research in this
field is still growing (see Chang, 2017; Khan et al., 2013; Tipu and Ryan, 2016). Nevertheless,
the bulk of the research were focused primarily on the concept of Protestant work ethic
(PWE) and less attention was given to assess the notion of Islamic work ethic (IWE)
(Mohammad et al., 2016).
Both IWE and PWE concepts differentiates between good and bad and right and wrong,
both of them encourage and advocate ethical behaviours in the workplace, such as honesty,
commitment, loyalty, cooperation, integrity, fidelity, persistence, diligence, etc. (Ali, 1992,
2010). Moreover, IWE and PWE consider work as a religious duty and perceive it as right
way to develop oneself and advance the social welfare (Mohammad and Quoquab,
2016). Nevertheless, IWE emphasise more on intentions of behaviour rather than
its outcome when compared to PWE (Khan et al., 2013). Moreover, the notion of IWE has its
foundation in the Quran and the Sunnah (Ali, 2005), whereas PWE originated from
Protestant thoughts and philosophy. Furthermore, when compared to PWE, IWE strictly
adheres to the principles of Islam in terms of halal (Permissible) and haram (prohibited) in
every aspect related to human being’s life and living, such as consumption pattern, work,
family and social life (Mohammad and Quoquab, 2016).
Understanding business ethics from an Islamic perspective is crucial because the
number of Muslims around the word exceed 1.57 billion, which make up over 23 per cent of
the world’s population (Pew Research, 2011). Additionally, the outcome of globalisation led
to a high level of diversity at the workplace (different culture, race and religion), which make
it vital to understand the workplace on a religious basis (Murtaza et al., 2014; Uddin, 2003).
Most importantly, Islamic philosophies, principles and teachings are characterised by
universality, comprehensiveness and completeness. Therefore, it can provide objective and
realistic solutions to human beings’problems that threat their existence at the individual,
organisational, national and international level (Mohammad et al., 2015).
IWE refers to a set of moral principles that organise and direct employees’attitudes and
behaviours at the workplace so that they are congruent with the teachings of the holy Quran
and the saying of Prophet Muhammad (saw) (Ali, 1988; Mohammad et al., 2016). Past studies
found that IWE has a significant effect on workplace in terms of employees’commitment,
satisfaction, involvement and intention to leave (Murtaza et al., 2014; Yousef, 2001),
organisational change, innovati on capability of an organisation, prod uctivity and
competence of an organisation, and overall quality of an organisation (Abuznaid, 2009;
Kumar and Rose, 2009), and HRM practices (Mellahi and Budhwar, 2010). However, there is
a lack of research regarding the relationships between IWE, employees’performance (EP),
PSY, and perceived organisational justice (POJ). Therefore, empirical research is needed.
Past literature found that EP, POJ and PSY can have substantial impacts on the
effectiveness, efficiency and success of organisation, and can determine an organisation’s
ability to survive and be sustained in the future (see Avey et al., 2009; Cropanzano et al.,
2009; Greenberg and Colquitt, 2005; Jeng and Pierce, 2014; Organ, 1988; Pierce et al., 2003;
Podaskoff et al., 2009). Thus, the present research considers these variables to be the
possible consequences of IWE.
Islam constantly emphasises on helping and supporting each other in social contexts like
a workplace. As stated in the Holy Quran,“Help one another in Al-Birr and At-Taqwa
(virtue, righteousness and piety); but do not help one another in sin and transgression”
(Quran 5:2). Furthermore, Islam emphasises the importance of justice, “We sent Our
Messengers with clear signs and sent down with them the Book and the Measure in order to
establish justice among the people […]”(Quran 57:25). Additionally, Islam emphasised the
importance of work and fulfilling its duties and responsibilities in the best manner. Holy
Quran stated what it means that believers that work righteousness, and to the full extent of
one’s capability will enter Heaven (Quran as cited in Ali, 1987, p. 7: 42). Accordingly, main
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IWE and
workplace
outcome
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