Journal of Islamic Economics Lariba

Integration of leadership styles and its impact on work motivation and managerial effectiveness in Islamic banking‎

2025-06-22T13:18:30+00:00

Introduction
In today’s dynamic and competitive organizational landscape, leadership is a critical determinant of work behavior, motivation, and managerial effectiveness. In the Indonesian Islamic banking sector, leadership presents unique challenges due to the need to balance operational efficiency with Islamic ethical and spiritual values. Despite asset growth, reports from the Financial Services Authority (OJK) highlight stagnation in organizational effectiveness attributed to weak employee motivation and commitment. While Islamic leadership has shown potential to enhance work culture and motivation, its integration into management practices remains inconsistent.
Objectives
This study aims to empirically examine the effects of transformational and transactional leadership styles on managerial effectiveness, mediated by Islamic leadership and work motivation, within the context of Indonesian Islamic banking. The study addresses gaps in the literature regarding the mediating role of Islamic values and work motivation and compares the effectiveness of two dominant leadership styles in a religious-based organizational setting.
Method
Using a quantitative explanatory research design, the study surveyed employees from three Islamic bank branches in Kendari, Southeast Sulawesi, Indonesia. The total sample consisted of 57 respondents selected through purposive total sampling. Data were collected via a structured questionnaire using validated Likert-scale instruments. Data analysis employed Structural Equation Modeling–Partial Least Squares (SEM–PLS) using SmartPLS to evaluate both measurement and structural models, ensuring robustness for small sample sizes and non-normal data distributions.
Results
The analysis revealed that both transformational and transactional leadership significantly influenced managerial effectiveness, with Islamic leadership and work motivation acting as partial mediators. Transformational leadership demonstrated a stronger direct and indirect effect compared to transactional leadership. Islamic leadership emerged as a pivotal mediating variable that bridged modern leadership styles with religious organizational contexts, enhancing motivation and managerial outcomes.
Implications
The findings provide theoretical insight by introducing a new conceptual model positioning Islamic leadership as a core mediating construct in leadership dynamics. Practically, the study offers actionable strategies for Islamic bank leaders to align spiritual values with performance targets, informing policy development and training programs on Islamic leadership capacity building.
Originality/Novelty
Despite growing interest in leadership models in Islamic organizations, few studies have systematically examined the mediating roles of Islamic leadership and work motivation in linking transformational and transactional leadership styles to managerial effectiveness—particularly within the Indonesian Islamic banking sector. Moreover, comparative evaluations of these two leadership styles in religious-based institutions remain underexplored. Addressing this gap, the present study proposes an integrative model that reflects both the spiritual context of Islamic organizations and modern leadership theory.

Designing an integrated Halal value chain model for sustainable fisheries: A case study from northern coastal of Java, Indonesia

2025-07-05T12:29:45+00:00

Introduction
The concept of the halal value chain has been widely applied in the food, logistics, and pharmaceutical sectors to ensure the halalness of products from upstream to downstream. However, the fisheries sector, particularly in the northern coastal region of Java, lacks an integrated halal value chain model that incorporates sustainability principles.
Objectives
This research aims to design a contextual halal value chain model that combines halal and sustainability aspects at each stage of the fisheries value chain.
Method
A case study-based qualitative approach is used with secondary data analysis from various official and academic sources. The analysis is conducted through content analysis, thematic synthesis, and mapping of halal critical points across five main stages: production, collection, processing, distribution, and consumption.
Results
The findings indicate that business actors do not fully comprehend halal standards, lack effective halal logistics, and have a weak certification and supervision system.
Implications
The proposed model emphasizes the importance of halal control, the integration of economic, social, environmental, and health sustainability, and the active participation of local communities. This model is expected to increase the added value of fishery products, expand access to the global halal market, and strengthen the sustainability of the coastal fisheries sector.
Originality/Novelty
This research contributes to the development of the halal value chain theory in the context of the fisheries industry, providing applicable policy implications for strengthening the national halal economy.

Integration of knowledge sharing and training transfer to enhance sales promotion girls’ performance for Islamic products: A qualitative study‎

2025-06-23T01:28:54+00:00

Introduction
In today's competitive marketing environment, knowledge sharing and effective training transfer have become essential strategies for enhancing employee performance. This study investigates how these two mechanisms influence the performance of Sales Promotion Girls (SPGs) for Unilever’s Islamic product lines in Kendari City, Indonesia.
Objectives
The research aims to examine the roles of knowledge collecting and knowledge donating, as well as the transfer of training outcomes, in strengthening SPG communication and sales skills.
Method
Using a qualitative-descriptive approach, data were collected through 25 in-depth structured interviews, participant observations, and document reviews involving selected SPG participants and supervisors. Thematic analysis was conducted manually using the interactive model, encompassing data reduction, data display, and conclusion drawing.
Results
The findings reveal that formal knowledge collecting—mainly through structured training sessions—improves understanding of personal selling concepts and Unilever’s Islamic products. Informal knowledge sharing, including peer discussions, enhances practical skills but still faces challenges in conceptual depth. The study also finds that knowledge donating, although beneficial, is hindered by time constraints, uneven knowledge levels, and limited organizational recognition. Additionally, the transfer of training—delivered by Unilever’s internal supervisors and brand-specific trainers—is significantly influenced by hands-on field practice, collaborative coworker support, and motivational incentives, especially recognition from management for successfully applying training content.
Implications
These findings highlight the importance of integrating formal and informal knowledge-sharing mechanisms with practical training transfer strategies. The study implies that companies should provide applied learning opportunities and structured appreciation programs to foster a more collaborative and adaptive work environment that supports SPG performance.
Originality/Novelty
This research offers novel insights into how knowledge dynamics and training transfer operate within the marketing of Islamic (halal-certified) products in an emerging economy. Specifically, it contributes to the limited literature on frontline personnel development—such as Sales Promotion Girls (SPGs)—by highlighting how value-driven knowledge sharing and Sharia-aligned training practices enhance communication and sales effectiveness. This contextualized contribution bridges gaps in Islamic marketing literature, where most studies focus on consumer behavior or branding, rather than internal HRD mechanisms supporting faith-based marketing implementation.