The effect of Islamic visionary leadership on organisational commitment and its impact on employee performance

Abstract

This study aims to examine the effect of Islamic visionary leadership on organisational commitment and its impact on employee performance. This study uses explanatory quantitative research on 20 state-owned enterprises (BUMN) in the food and technology cluster in Indonesia, with 85 respondents who were processed using the structural equation modelling (SEM) with partial least square (PLS) (SEM-PLS) approach. The results of the study indicate that Islamic visionary leadership directly influences organisational commitment to the organisation in the food and technology cluster state-owned enterprises in Indonesia; Islamic visionary leadership directly influences employee performance in the food and technology cluster BUMN companies in Indonesia; Islamic visionary leadership indirectly influences employee performance through organisational commitment in the technology and food cluster BUMN companies in Indonesia; and organisational commitment affects employee performance in the technology and food cluster BUMN in Indonesia, Jakarta.Contribution: The results of this study show that the application of Islamic teachings in the leadership of organisations can improve organisational commitment and the performance of employees in the organisation in an Islamic context.

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